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Wells Fargo cancels ritzy Las Vegas retreat

Posted Feb 04 2009, 06:59 AM by Kim Peterson
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Why don't banks hold executive retreats at someplace like the Hyatt Regency Wichita? I'm sure Wichita, Kan., is a beautiful place, and holds none of the indulgent excess of, say, 12 nights at the Wynn Casino in Las Vegas.

The Wynn is where Wells Fargo (WFC) had booked rooms for a dozen nights to reward its top employees and their guests. But after suffering intense criticism for the move -- Wells Fargo did get $25 billion in taxpayer money, after all -- the company abruptly canceled the event Tuesday.

At first, Wells Fargo defended the junket as an annual tradition. Previous trips have included private Jimmy Buffett concerts, horseback riding, wine tasting and gifts laid on pillows, The Associated Press reports. But as time went by, Wells found it harder to justify the expense.

So once again we witness a culture clash between Wall Street and the real world. Banks like Merrill Lynch have been pummeled for awarding huge bonuses to employees at a time when the taxpayers are bailing out the sector. Citigroup (C) was loudly criticized for ordering a $50 million luxury jet for executive travel.

And they give the same chorus of response when asked about it: This is just the way things are done. Top executives get rewarded for bringing the company business. Bonuses are a way of life, an incentive that helps a worker make more money for the company. All-expense-paid casino trips would have never made the headlines before the bailouts.

But the bailouts are a reality, and taxpayers are suddenly paying attention to how banks and other companies spend their money. Lavish corporate retreats are out, as are lavish jets. Anything that even seems remotely excessive is off-limits -- even if the companies argue that no bailout money is being used to pay the bills.

It's a new world for bailout companies, and employees who have grown accustomed to splashy corporate perks cannot be happy about that. 

Related reading:

Obama squashes Citigroup's $50 million luxury jet

AIG cancels pedicures for now

Comments

 

Arrogance Rules!  The American financial system, wall street and politicians are "rotten to the core"!  How about a tax cheat being selected by the President of the United Sataes and approved by the Congress to head Treasury who the IRS answers to!!  Or do they?  Or so what!

So instead of spending money in Las Vegas that ultimately benefits workers in the hotel and related industries, Wells Fargo will what?  Just keep the money?  "Money is like manure, you've got to spread it around encouraging little things to grow" - Dolly Levi

It's strange to me that these people feel it's an entitlement to be spoiled when the company is failing. In my experience, bonuses are given ONLY when the company is in the black. This sort of finacial abuse shows me these people do not practice good judgement and therefore may be the reason their company is in the legged toilet. Don't they realize no matter what they say, they're under and microscope and not trusted with money? Board of Directors should be ashamed of themselves for hiring people like this. Maybe they are the real problem.

When will they learn. How would they know if bailout money was used. Did they put the bailout money in a seperate pile" this pile is to save us and this pile is to play"!!!!!

Go figure, Wells Fargo hired a Law company to come after me for a whooping $528.00 amount they say I owe them and yet they planned on going on a trip to Vegas.  I hate Wells Fargo and hope they go belly up!!!!!  They are the worst banking company hands down and Chase should take over and move them out!!!!

Yes, America, the banks are still greedy.  And they are STILL trying to get me to take out another equity loan when I am already mortgaged to the hilt. Equity my foot, that's hard-earned money I initially put down on my mortgage.  Believe me, they were looking at the photos of my new home and licking their chops!  Buyer beware!  

I read the article and was infuriated to say the least. Is the management of Wells Fargo bleeping IDIOTS? Do they not get it? The spokeswoman (Melissa Murrey) for Wells Fargo should be fired for putting out the statement that it is thier corporate culture to reward employees. Does she not hear how absurd that is to say or is she just DUMB? Their employees are the ones that wrote out the BAD  sub prime mortgages in the first place. It's to bad that you still can't hang people in the town square.

I think we should nationalise the banking, enough is enough.

Will some one alert the Government about the main issue at hand. Yes I applaud the Government efforts in policing the Banks on frivilous speeding, however when will they monitor the Banks to make sure the Bail out money received or the monies given them is used to creat new loans to borrowers. You can not unclogged the massive real estate inventory in the market when score requirments for home buyers goes up at will by the Banks.Even the government loans, government because they are insured loans now requires a higher credit even though HUD will profess openly that no credit score is required. Tell me how most home buyers yarning for the American Dream can have high credit scores when times are hard and the credit agencies used a module that is unknown to any one to score. If there is no lending or when there is no money moving hards or when the requirements gets tight by the minute at will.

No companies should be bailed out.  They wasted their money for years on needless luxuries.  Now the low and middle class workers are paying for all those luxuries these companies bought.

No bailout should be given.  Let them all fail and the working people will pick up and the economy will sort itself out over time (a long period of time).  Frankly, giving money to people that have already proved they couldn't manage what they HAD isn't going to fix anything.  They haven't learned anything and won't be able to manage the new money that's being given to them.  They'll still fail at the taxpayers expense.

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