Friday, January 15, 2010

Big Picture: Record Bank Bonuses Based On Record Bank Fraud

Barry Ritholz gets it right with this short opinion piece on bank bonuses.

Ask yourself how hard it is for any finance firm to make money — risk free! — when they can borrow from the Federal Reserve at a rate of zero, and then turnaround and “lend” that same cash to the Treasury (buying bonds) at 3% ?


Scott Dauenhauer CFP, MSFP, AIF