Blackstone and Capital's Scam--Robert Weissman

Tweet Robert Weissman puts some perspective on Wall Street/Chamber of Commerce complaints to the SEC that they are "overregulated." Read the whole sad story here (portion below): http://www.huffingtonpost.com/robert-weissman/blackstone-and-capitals-_b_54004.html


"Just consider the profits and earnings for those who make their living on Wall Street. The guys in the fancy suits are doing alright for themselves.

"Wall Street bonuses totaled $23.9 billion in 2006, according to the New York State comptroller, up 17 percent over 2005. It takes top Wall Street traders about two hours to make as much as the median U.S. household earns in a year, notes Sam Pizzigati, editor of the on-line newsletter Too Much.

"Profits at Citigroup actually fell in 2006 -- and the company was still the third most profitable publicly traded corporation in the United States, according to Fortune. Bank of America saw profits soar by 28 percent to $21.1 billion, to register the fourth highest profitability in the United States. J.P. Morgan came in ninth. Profits at Goldman Sachs were up 90 percent, to $9.5 billion -- good for sixteenth on the Fortune list.

"And then there's Blackstone. In selling part of itself on the publicly traded markets, the firm was forced to disclose important financial information. CEO Steve Schwarzman made $400 million in 2006. He grabbed $677 million when the company became publicly traded. And his share in the company is valued at $7.7 billion.

"The phantasmagoria peddled by various blue-ribbon commissions anointed by Wall Street and the Chamber disregards these riches and concentrates on one overriding deception: The claim that regulation and litigation is driving companies to float their Initial Public Offerings (IPOs, the moment when they initially sell their stock) on foreign markets.