Skip to main content

This is a little off the beaten track for me, but it is a very real example of how taxpayer money is being spent wasted on bailouts for failed executives.

It's particularly important to publicize this sort of wretched excess, known as the privatization of profits and socialization of loss,  as we approach the opening of the 111th Congress and the battle for affordable and guaranteed healthcare for all Americans goes into high gear.

As sure as night follows day, we will hear some many say, the United States can't afford to provide healthcare to all our citizens. When this deceit gets going, please remember that a huge amount of taxpayer money is raining on  failures like Peter Kraus--no questions asked.

This is 720 Park Avenue in New York City. It's one of the most expensive buildings in Manhattan. Peter Kraus and his wife Jill, just paid $37 million for an apartment in this building. This year, Peter Kraus received a payout of $25 million dollars for working at Merrill Lynch for just three months.

720 Park Avenue

DIGG link if you're outraged.

You can't make this stuff up.

Merrill Lynch received TARP funds--taxpayer money. Lots of our money has fallen into the hands of executives  who destroyed and looted their companies and are walking away with huge payouts. Peter Kraus is one such executive.

And he should be publically shamed.

In New York like most localities, real estate sales are public records. A local New York Real Estate paper, The Real Deal searches for high profile sales in in doing so, the newspaper often turns up examples of staggering greed and excess. This transaction is a further startling indictment of our times.

AllianceBernstein CEO pays $37M for pad at 720 Park Avenue

Investment advisor Carl Spielvogel and his wife Barbaralee Diamonstein-Spielvogel sold their cooperative apartment at 720 Park Avenue, at the corner of 70th Street, for $36.63 million, nearly twice what they paid for it two years ago.

The sale of the seventh-floor unit closed December 18, according to property records posted Friday.

The buyer was identified as Jill Kraus, wife of Peter Kraus, a former executive vice president at Merrill Lynch who reportedly received a $25 million bonus after working at the firm for three months this year. However, only her name was listed on the property report. He was hired as chairman and CEO of AllianceBernstein on December 19. A Merrill Lynch spokeswoman would not comment on his pay package.

This story is so egregious and revolting that even the Wall Street Journal felt morally compelled to weigh in.

Merrill Lynch’s Peter Kraus Collects $25 Million, Then Resigns

Now, former Goldmanite Peter Kraus is getting his $25 million bonus, according to people familiar with the situation, though he has been at Merrill only three months. Kraus left Merrill Friday, shortly after after his rich exit package was triggered by the Merrill sale. In a year when some bankers are being paid with junk, Kraus’s exit payment is a stunner that represents to about 0.1% of Bank of America’s $25 billion capital injection from the U.S. government.

So where's our taxpayer money going? Well Mr. Paulson says it's fungible, so it's hard to trace.

We've been told that banks will not reveal what they're doing with taxpayer money. Money is "fungible", so how can we expect them to fess up? Do you blame thieves for not being truthful ?

Dianne Feinstein is miffed. "At present, we don't know whether these companies are using these funds to fly on private jets, attend lavish conferences or lobby Congress," Feinstein said in a statement. Let me help unmiff you, Senator Feinstein and others.

Here are some details about where our money is going.

Let's take a tour of the Kraus residence on Park Avenue.

This is the floorplan [UPDATED] of the apartment that Jill Kraus (ahem) purchased for the family.

720 Park Avenue

This looks like the living room.

720 Park Avenue

And this must be one of the dining rooms.

720 Park Avenue

The entrance foyer.

720 Park Avenue

So this guy received "fungible" taxpayer money, now you know how some of it's being spent.

So where are our representatives?  On vacation.

Where's our healthcare? The United States can't afford it.

DIGG link if you're outraged.

Originally posted to nyceve on Tue Dec 30, 2008 at 07:54 AM PST.

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

kos, skybluewater, Louise, bink, Alumbrados, davej, Thrasyboulos, paradox, tsackton, Ed in Montana, Angie in WA State, Susan S, JWC, Joe Bob, Roger A, Terri, Marek, SteveLCo, tgs1952, northsylvania, raboof, RedMeatDem, harveythechainsaw, Mogolori, Chi, sny, nolalily, TealVeal, Sally in SF, debcoop, ogre, alyosha, kate mckinnon, XOVER, Adam B, Hornito, Geenius at Wrok, peggy, Ernest T Bass, dfarrah, sen bob, Powered Grace, tiponeill, maynard, madmsf, am, lazbumm, tnichlsn, JTML, Sprinkles, dengre, tommurphy, annalivia, Shockwave, jabb, byteb, LynChi, meg, Jay C, Arlyn, lysias, LEP, rhubarb, celdd, eeff, sandra1113, Mnemosyne, tryptamine, Pompatus, xynz, HootieMcBoob, gecko, kdub, figdish, Sandy on Signal, devtob, lepermessiah, rlamoureux, marjo, theran, sobermom, RFK Lives, lzachary, BenGoshi, object16, CivicServant, bumblebums, exNYinTX, givmeliberty, vrexford, Arthur Dent, Eric J in MN, bostonjay, hubcap, Creosote, redtravelmaster, RubDMC, Scott in NAZ, rasbobbo, opinionated, joyous, ReneInOregon, bronte17, KB, missLotus, EricS, DickCheneyBeforeHeDicksYou, wonkydonkey, Mary Julia, annrose, understandinglife, SecondComing, sfgb, susakinovember, whenwego, mustang dvs, OCD, undercovercalico, DaleA, ask, CoolOnion, peace voter, highacidity, KMc, sayitaintso, boadicea, Cool Blue Reason, PBnJ, cosmic debris, Glic, Scoopster, mkfarkus, buckhorn okie, phild1976, mrblifil, barath, roses, chechecule, lorikay4, Frederick Clarkson, JuliaAnn, gabie, skertso, L0kI, Miss Blue, superba, MJB, Swordsmith, Nate Roberts, Jesterfox, andreww, jted, antirove, Alna Dem, nalakop, Brit, Eddie C, wader, Melanchthon, DustyMathom, JimDev, Oke, webweaver, hopesprings, dejavu, Dube, Getreal1246, psnyder, minorityusa, MrSandman, emmasnacker, danthrax, Dallasdoc, DeadB0y, CitizenOfEarth, f furney, Sycamore, SKB, MTgirl, mad ramblings of a sane woman, grannyhelen, Noodles, TiaRachel, Smartyjones, Nina, cosette, desmoinesdem, noveocanes, On The Bus, TX Scotia, hazzcon, renaissance grrrl, dnn, jmknapp, razajac, rlharry, mod mom, RebeccaG, welshvalleymaid, fritzrth, barbwires, dkmich, walkshills, bwintx, Bendra, AllisonInSeattle, side pocket, KellyB, randallt, Redbug, bobnbob, Deward Hastings, PJBurke, poemworld, DarkSyde, bablhous, Emmy, kd texan, vacantlook, Daddy Bartholomew, boran2, bibble, murrayewv, BDA in VA, Hyuga, cohe, Gowrie Gal, Jersey Joe, dvx, ebbinflo, tami33, luvmovies2000, tardcat, madaprn, joanneleon, angrybird, Recovering Southern Baptist, chumley, mediaprisoner, maybeeso in michigan, bloomer 101, Bluesee, ZZZzzz, 3goldens, Tinfoil Hat, PAbluestater, supak, Treg, NoMoreLies, Jagger, TexasTom, etocetoc, bellevie, Ckntfld, UFOH1, Unit Zero, lilypew, jarneys dad, baccaruda, Freakinout daily, Jaxpagan, SherwoodB, Alice Marshall, waitingforvizzini, arnott, OpherGopher, PBen, PsychoSavannah, sap, Superpole, KnotIookin, Silentspring, grimjc, jhutson, CO, clammyc, eightlivesleft, Valtin, tomfool, ChemBob, stitchmd, juliesie, Brooke In Seattle, YucatanMan, fireflynw, reflectionsv37, ratzo, eru, Jules Beaujolais, bleeding blue, LNK, Morrigan, snootless, jimstaro, jimreyn, Burned, QuickSilver, blue jersey mom, babatunde, jane123, The Bulldog Manifesto, jeff in nyc, PinHole, Cyber Kat, janew2, AnotherMassachusettsLiberal, klarfax, Savvy813, cerulean, wiscmass, LivesInAShoe, Lisa Lockwood, Riff, Red Bean, benny05, Rogneid, Beezzley, Hannibal, bookwoman, Flippant, JanL, Ekaterin, proudprogressiveCA, hcc in VA, tvb, empathy, Indiana Bob, kkjohnson, Alan Arizona, Snud, simplicio, Asinus Asinum Fricat, fhcec, Jim R, coffeeinamrica, begone, skywriter, SoulCatcher, harrietshubby, occams hatchet, elliott, Bright, Showman, redcedar, SoniaS, Nance, bajajazz, snazzzybird, danmac, MissInformation, Do Tell, socialist butterfly, MoreTruth, Pacifist, tommymet, Patriot Daily News Clearinghouse, vigilant meerkat, 417els, testvet6778, sambar, BlueInARedState, Themistoclea, andydoubtless, tonyahky, wahineslc, Gorette, Yellow Canary, cookseytalbott, liberalconservative, mooshter, Prognosticator, martyc35, smokeymonkey, buhdydharma, mrobinson, ccmask, Loganpoppy, arlene, Stop the planet I want to get off, greenearth, mooomb, rockyboy, goodasgold, NBBooks, tecampbell, MJ via Chicago, eglantine, A Siegel, 4Freedom, merryberry, gatorcog, Libby Shaw, Bob Sackamento, imabluemerkin, paul2port, Data Pimp, real world chick, Terminus, Caoimhin Laochdha, NearlyNormal, CTLiberal, bleeding heart, Preston S, el cid, boatsie, ER Doc, Unitary Moonbat, Dinclusin, doinaheckuvanutjob, quantumspin, Pilgrim X, TeddySanFran, GiveNoQuarter, Mae, va dare, BB10, Lovo, fiddlingnero, Stripe, means are the ends, RantNRaven, Dreaming of Better Days, creekobear, kurt, MadMs, Statusquomustgo, PhilW, Blicero, Bernie68, pkbarbiedoll, bstotts, Snarcalita, Picot verde, Jay D, Temmoku, blueintheface, Little, illusionmajik, Nulwee, ZenTrainer, Aaa T Tudeattack, NonnyO, AntKat, DBunn, ammasdarling, pale cold, AmericanRiverCanyon, One Pissed Off Liberal, old wobbly, sarasson007, pgm 01, j1mmyann, out of left field, TC MITS, Cronesense, SparkleMotion, wa ma, sistersilverwolf, Ann Galloway, blue armadillo, dmh44, tgypsy, Deadicated Marxist, ksp, Tailspinterry, moodyinsavannah, grelinda, ColoTim, jetskreemr, UU VIEW, Positronicus, vets74, Great Uncle Bulgaria, lachsis, FishOutofWater, Duccio, yowsta, david mizner, HeartlandLiberal, NCDem Amy, Jimdotz, DWG, joyful, Ninepatch, twinpeaks, Unbozo, St Louis Woman, Strabo, bnasley, gatorbot, reason7, malharden, klondike, Rex Manning, HCKAD, jello5929, rivamer, akdude6016, vbdietz, cyncynical, AznInCali, quadmom, netguyct, TheCorkBoard, Newzie, jnhobbs, millwood, Moderation, jhop7, ob1katoby, MadAsHellMaddie, cececville, leonard145b, JML9999, keikekaze, cloudbustingkid, sable, Terra Mystica, Empower Ink, vivaldi, Send Rahm a Cheesecake, JDWolverton, MKinTN, FishBiscuit, wondering if, rogerdaddy, bkamr, Shane Hensinger, mconvente, condorcet, Captain C, NYContrarian, middle child, califdem, ms scarlett leadpipe, spacejam, ScottyUrb, zerone, OleHippieChick, geez53, Youffraita, Andrew40, dadadata, ReEnergizer, bythesea, Felix Culpa, Cat Servant, honey, CDH in Brooklyn, Rick Winrod, Sharon Wraight, Its any one guess, hedgeapple, VL Baker, lavorare, baudelairien, Spirit of Fighting Bob, Dante Zappala, Lujane, tofumagoo, pamelabrown, Haplogroup V, boatjones, Hanging Up My Tusks, Wek, icebergslim, pickandshovel, TokenLiberal, MsWings, Jeff Y, rubine, Dean Barker, sierrak9s, WoodlandsPerson, gildareed, Gemina13, PJ Jefferson, mspt, Notreadytobenice, BCHS 1980, luckylizard, nokkonwud, xysea, Bartimaeus Blue, DixieDishrag, A Man Called Gloom, Athenocles, dont think, Guadalupe59, caps lock on, magicsister, Ellinorianne, In her own Voice, CatJab, GrannyOPhilly, bucadibeppo, shortgirl, princess k, jay w, CIndyCasella, penguinsong, bluegrass50, TennesseeGurl, legendmn, 4km, clent, dreamghost, SciMathGuy, Jakob, Bule Betawi, cybrestrike, Mr Tentacle, DontTaseMeBro, driftwood, Texanomaly, LA rupert, Dirtandiron, aufklaerer, meatwad420, Scott Wooledge, hummingbird4015, gdwtch52, wovenbirds, An Affirming Flame, sunhaws, Shhs, ussr, banjolele, eltee, Stranded Wind, Sarge in Seattle, DancinMan, imchange, dicentra, Partisan Progressive, h bridges, Valhalla, mrchumchum, drizek, Jenai, EquationDoc, Daily Activist, siberia9, redtex, mama hearts obama, ZilV, Lopez99, Vanadium, silentbobus, IngeniousGirl, tvmaker, IreGyre, RadioGirl, audiored, 57andFemale, Houston Gardener, abraxas, fernan47, reesespcs, BA BarackUS, CroftonPark, etara, Wings Like Eagles, Adept2u, collardgreens, Colorado Billy, Larsstephens, worriedgranny, BigVegan, TruthandTrust, BrighidG, oohdoiloveyou, TNThorpe, Latex Solar Beef, japaneseirish, pyegar, GBC, kyakaha, ArtSchmart, sevenstars, Commoditize This, robertacker13, eXtina, imamish, cindiloohoo, OldPhart, seanwhit, piers, kjoftherock, Jasont3h, fidellio, TheWesternSun, Obamacrat, Taxmancometh, chrome327, Crabby Abbey, Giles Goat Boy, wvmom, Ronald Singleterry, lostmypassword, legalchic, kinkistyle, k8dd8d, cordgrass, ctlrick, NY brit expat, catchlightning, tb mare, ItsSimpleSimon, SlackwareGrrl, Benintn, Mariken, JasperJohns, j b norton, cai, Surly Cracker, JRandomPoster, Caerus, sluggahjells, mideedah, washunate, Betty Pinson, aswipe, MsGrin, czardingus, BasiX, bottles, CA Berkeley WV, moke, jeanma, lmdonovan, JerichoJ8, no way lack of brain, nyacker, ladyducatnip, Colorado is the Shiznit, Verstand, TAH from SLC, heart of a quince, the mom in the middle, ramfar, bgblcklab1, atheistben, DupageBlue, winter outhouse, BlueState Michigan, Olon, kirbybruno, Kharafina, wahine, freesia, xylonjay, BlueHead, speet, Maribeth, SERMCAP, blueinmn, Jed Lewison, Haf2Read, Cinnamon Rollover, Wheever, kristyp, Rhode Island X, Laurie Gator, rk2, Jenny Cash, Sark Svemes, COkdub, ce2008

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site