Wall Street gets it all: Bailouts, bonuses, first dibs on H1N1 vaccine
Filed under: Company News, Economy, Healthcare
When it comes to allocating scarce public resources, large corporations seem to have the upper hand in the US. We already know that many powerful companies, particularly the Wall Street investment banks, having gotten plenty of Washington cash. Now it looks like they're getting first dibs on the scarce H1N1 vaccine as well.
If I remember correctly, last fall the problems with the financial sector nearly cratered the global economy -- what with the $30 trillion in lost stock market value and over a trillion dollars in bank write-offs. As I've written before, Wall Street accounts for 0.057 percent of our population, but because it has given $5 billion to Washington politicians and lobbyists over the last decade, the government poured trillions of dollars into bailing it out after its little collapse last year.
Even after the storm passed, the preferential treatment has continued. The latest outrage may well be how major banks are using taxpayer funds to cut borrowing costs even as they raise credit card rates. The first half of this equation -- reduced borrowing costs -- hinges on government guaranteed bonds. According to The New York Times, the government guaranteed on $300 billion in bonds that Wall Street issued, letting financial institutions save $25 billion on their borrowing costs. And that $25 billion is just a small part of what Wall Street got. The government has devoted trillions of dollars to the bailout, with the final costs still unknown. Meanwhile, Wall Street will pay itself record bonuses of $140 billion this year.
Needless to say, this generosity was not passed along to the consumer. While banks got taxpayer funds to cut their borrowing costs, they also raised consumer interest rates. According to The Boston Globe, banks are scrambling to raise credit card rates to 30 percent before tougher regulations take effect in February 2010.
But at least those 175,000 Wall Streeters are mortal, right? Sure -- except that hundreds of Wall Street employees will be able to reduce their risk of infection from H1N1.
How so? Some of the biggest Wall Street banks -- including Goldman Sachs Group (GS) and Citigroup (C) -- will be receiving the swine flu virus before you, according to The Associated Press.
To be fair, this benefit extends far beyond Wall Street; 50 large employers in New York City have received the vaccine so far, and just for their high risk employees, who include pregnant woman and obese people. These other companies include include DailyFinance's ultimate parent company, Time Warner Inc. (TWX) and hospitals such as Memorial Sloan-Kettering Cancer Center. Goldman has received 200 doses and Citigroup got 1,200 -- and their officials said the vaccine would only go to those in high-risk groups.
Even so, it's galling to think that some of the people who have profited so richly from government bailouts will receive special treatment from government health care too. It seems like -- even in Uncle Sam's eyes -- we are all equal, but some are more equal than others.
Peter Cohan is a management consultant, Babson professor and author of eight books including, You Can't Order Change. Follow him on Twitter. He owns Citi stock and has no financial interest in the other securities mentioned.



























Reader Comments (Page 1 of 11)
11-06-2009 @ 3:51PM
Charlie said...
Oh, now I see!!!! First the crooks in jail get the vaccine, now the crooks on Wall Street get it. Interesting!!!
Reply
11-06-2009 @ 5:01PM
thom said...
correction :
the crooks in jail were guinea pigs, but since this experiment is being rushed, let the crooks on wall street experience the final stage.
good riddins.............
11-09-2009 @ 7:23AM
Donna said...
Now Charlie, You know there is certian people Obama has to take care first!!! And you are not one of them. But don't feel bad, there is a lot of true Americans that is not on his list.
11-09-2009 @ 7:48AM
prohealth said...
Everyone posting should thank your lucky starts and not complain. Do a little background check on this vaccine and how it was fast tracked. Google the package insert and read the ingredients. WHy is everyone so hell bent on getting a vaccine they know nothing about? You can't believe what the main stream media says, their number one advertisers are pharma companies.
11-09-2009 @ 8:13AM
Don De said...
Can you imagine someone on these boards is suggesting it is Obama who is getting the flu shots to the wealthy and powerful.? What a job the Rebulicans have done using the uneducated and uninformed to undermind what the president is trying to do. Do you get it? The drug companies, the insurance companies and the health people and the wealthy do not want to lose their obscene profits and power. Obama is a threat to their power and profits. Elect the Republicans next time and keep the people who all but destroyed our economy to keep their power and influence.
11-06-2009 @ 4:06PM
paparcl said...
Should we have expected anything other than this?
Reply
11-09-2009 @ 8:49AM
Wolf said...
Well, you know now how to Voter the next time ! !!
11-09-2009 @ 9:34AM
Kathy said...
It's never been that organized. Usually you can get one at company or drug store flu clinics, but they have no way to tell who has a condition that qualifies them other than what the person says... and doctors' offices often don't have enough to cover all the patients who need it. I've never gotten one from a doctor's office, just my husband's company or a flu clinic at Kaiser - where at least they know who I am and have my medical records, unlike company flu clinics where people aren't usually screened other than making sure they're not sick or allergic to eggs. I'm sure there will be people who lie to get the Swine flu vaccine.
11-06-2009 @ 4:05PM
angie said...
It's not the what you have, it's who you know.
Reply
11-09-2009 @ 11:03AM
Bucksnort said...
It's not who you know, it's who you "BLOW!"
11-06-2009 @ 4:07PM
Ron B. said...
God forbid if any employee at these "Wall Street" firms would get sick! Think about it......They would lose MILLIONS!!!!!!
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11-06-2009 @ 4:10PM
THOM said...
particularly the Wall Street investment banks, having gotten plenty of Washington cash. Now it looks like they're getting first dibs on the scarce H1N1 vaccine as well.
EXCELLENT, LET THE GUINEA PIGS HAVE THE FIRST SHOTS AND WHEN THEY START CROKING - THE PUBLIC CAN CELEBRATE.
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11-06-2009 @ 4:22PM
Democrat said...
What the F? Taxpayers have eaten their "Toxic Assets" gave them trillions of dollars in bailout which they paid themselves huge bonuses, lobbied against regulation and now they get H1N1 vaccine before pregnant women and children? Well at least we know who runs the country!
Reply
11-06-2009 @ 9:17PM
Zach said...
Does this really come as a suprise?
11-06-2009 @ 10:53PM
Ron said...
Now who do you think is running this nation? It was always about money. Isn't that the idea of capitalism? Make as much money as you can, as quickly as you can, and if you hurt or destroy others, so what? Success is not based on how well you are liked and how many friends you have, it is based on how much money and how many toys you have. Of course, as I saw on a No Fear shirt, "He who dies with the most toys, still dies". But these rich bastards will find that, in their final judgement, the judge will not be taking any bribes and this judge does not look at ones wealth at all. In fact from what I have read, wealth and greed are detrimental to ones case.
11-07-2009 @ 10:05AM
clem said...
but the little people get plenty of cable sports , lottery and are still able to fill their baskets at wallmart with junk from china. as long as we provide them with this they are easily divided, and easier to conquer. keep up the good work big business and you wealthy campaign donors, those little people will never be able to get congress back
11-06-2009 @ 4:22PM
rob said...
i will never ever vote again never never let all the greedy bastards fight it out ........
Reply
11-06-2009 @ 7:17PM
Kevin said...
If you don't vote, you can't complain!
11-09-2009 @ 10:19AM
Tom said...
Rob..........these greedy, low life, despicable politicians got their jobs, how? By people electing them to those positions! That, is how YOU get them out of office........by voting someone else in! I don't know if YOU are a vet, but...I am! It really bothers me to hear that people AREN'T going to vote EVER AGAIN! Take a look at some of the Independent candidates running for office. If you didn't see their debates in the last Presidential elections, you owe it to yourself to check them out. My friends were calling me during the debates asking me what was wrong with this picture. No one was pointing fingers at the other, accusing them of doing this or doing that....there was NO negativity in those debates. Why??? Because, unlike the Republican and Democratic candidates, the Independents put COUNTRY first.........NOT their political party. They truly care about our country. Check them out......then please, GET OUT AND VOTE!!
11-06-2009 @ 4:27PM
Obama Care Elitist said...
One small step for government health care, one giant leap for socialists class domination . . . . . .
Reply