In a further sign – as if we had needed one – how twisted and sick this system is we learn today from the WSJ of an additional reason, why the insurance companies are getting their hands on TARP money.
It is a way to secure bonuses, defered pay and pensions for bank managers. It works like this: Banks are taking out life insurance policies on the life of thousands of their employees with a top-manager as beneficiaries. This way, the managers get a cash payout everytime an employee or retiree dies.
The practice has been ongoing for years and for the banks alone we are talking about a substantial amount of money. According to the WSJ about 123 bln $ at the end of 2008.
One wonders wether or not managers have profited from the death of their employees in 9-11-01 while the families of the dead did get nothing. Considering the sickness of this systems we are suffering under have to assume that this has happened.
This is an outrage. Not so much because of the bonuses themselves – but because managers have an incentive to work their employees to death, shorten their lifespans and put them into harms way whenever possible – they get paid everytime someone dies. You simply cannot get any sicker than that. Historical references come to mind immediately.
And the practice is not limited to banks only but stretches over thousands of companies, among them AIG, Fannie Mae, Freddy Mac, Kimerley-Clark und Tyson Foods.