That's all we need now. One of the leading subprime lenders that is now in bankruptcy is seeking to grant bonuses to its top managers. The leadership there has the nerve to make that request in front of the bankruptcy judge in Delaware. First they run a large home loan institution to the ground with ill-advised policies and then they turn around as if nothing had happened and ask for bonus money for their labors.
Should they be able to attract buyers for the mortgage company's assets, they argue, they then ought to be entitled to bonuses. But the documents that were filed with the court state that they would get paid even if they didn't sell any of the assets. How about that? The lender also asked that the court issue a limited notice of the plan, meaning that the idea is subject to only limited exposure to creditors. When the creditors find out about that, they'll be justifiably thrilled.
The U.S. trustee for the bankruptcy court is dead set against this audacious scheme. Let's hope the judge agrees.