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Welcome back to happy hour while we.
City in the country are still feeling the fallout from the financial crisis.
Record bonuses continue to be paid out by those big old banks.
One man thinks the bonuses are just over the top and inappropriate is New York City controller.
John Lu joins us now we're happy hour John -- congratulation act.
-- thank you -- regulation lower right that's exactly speaking of which I'm confused by what you're asking are upset about here.
Revenues for big bonuses for the city are down 40%.
Year over year and -- that they're paying out any bonuses.
It's that now I'm not saying that.
What I am saying is that there are lots of people on the street while -- -- upset that after.
Less than a year after the taxpayers of this country bail out these big banks with hundreds of billions of dollars.
That now these executives are getting these ridiculously large bonus near a record level bonuses at a time when people in this city facing double digit unemployment.
People losing their homes in the continuing -- -- crisis.
Cost sky rocketing through the roof.
And yet these -- -- -- -- -- out nobody understands how these bonuses are paid out what the formulas are what every -- really reflect performance and so there are a lot of issues here.
There's little chance now Bernie this hurts the city though for them not to pick -- the bonuses which -- just.
From it seems you should be speaking your book saying all we want big bonus is here -- anyway what we need.
-- is a real revitalized economy in New York City and beyond.
An economy that is they aided by reinvestment in communities you know the whole bill I was most at ease the credit crunch and -- small -- -- Even medium sized businesses seem to some -- as they can't get access to credit.
So while we may say -- yet let's pay out the bonuses so we can collect the taxes this year what about next -- what about the hereafter we need to really.
Rebuild -- fundamental.
Our economics are used in suspicious.
As Cody you're mentioning before that may be some of these banks.
Really aren't on solid foundation and they shouldn't be paying these big bonuses and -- -- -- -- that candidate I.
-- not part of the problem nobody understands what the rationale is behind these big bonuses and but you don't want to talk about bonuses that -- really like the you know that the entry in middle level workers really need to pay their bills what -- about.
Multi million dollar bonuses.
And this on on the heels of hundreds of billions of dollars that taxpayers provided.
And so it's it's just that you know you know it does offend some people sensibilities that why is it.
That these bonuses being paid but after they got to bail out so what should they do with the money they paid their part many back some of the banks.
They have a sex acts they set it aside for by law.
I remembered that the -- was supposed to.
Re -- to to make sure that these institutions cannot fail.
And at the same time -- -- a little bit of -- back in the economy as I said before right now small businesses medium businesses even homeowners.
Can't get loans to stay afloat -- it.
Personally or financially in their businesses what about easing the credit crunch what about using up the lending and revitalizing some of the local economy well the way -- The politics so well let's talk at some specifics of our revenues going to be -- in this city.
To our tax collectors since gonna just collapsed and this year what's the outlook how that's gonna get man.
We're facing a large budget deficit in New York City alone it's about one billion dollars -- -- Undoubtedly going to be significant service reductions by -- but -- city government does and it may be some revenue increases also but there.
If I'm not ready to say and I think most people are not -- say that all let's just.
Have the Wall Street firms give up these multi.
Indeed these billions of dollars of bonuses just so we can get a tax boost this year again is it going to continue next year and the following yeah what I meant to suggest comptroller.
Is making sure that we have a structurally sound filibuster without isn't -- -- Want to be -- -- gate -- take on.
This bank -- that the president wants to assess the banks to get back taxpayer.
Bailout money the mayor Mayor Bloomberg.
City think it was a good idea that it would hurt the economy and the banks in the long -- and the city you're up.
Well this is really just making good on a deal.
That the government made -- American taxpayers.
And the American taxpayers was -- hell hole.
It in this whole effort in this whole bailout -- so I just think they that the president is doing the fair thing yet now some people may argue while.
It's caught companies were suspects now it's the intact -- economic sector all across the country but he can't -- one sector.
And think that give another sector fails it would have.
It would have affected the first and -- the colossal failure on so many levels they just got.
Big mortgage you know yeah yeah a -- -- but I don't.
-- -- -- -- That because this is that these cat cat it's a capitalist system that's being -- here.
And you don't have a capitalist system here is not capitalism you are not capital -- happen -- revenues at all.
-- if there was a colossal failure there should be some way to reimburse the taxpayers and in any event.
And then that we don't know it's been looking if it was a failure that's right -- -- -- -- -- won't -- -- -- bonuses.
-- particularly on an attack on -- make you very much history back.
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