Where is the government's bank-bailout money going? In part to pay for Wall Street banker Peter Kraus's $37 million Park Avenue spread.
Kraus had excellent timing. He signed on as a top executive at Merrill Lynch in May, negotiating a $50 million pay package, with much of that guaranteed if the company was sold. He didn't officially start until September. A couple of days later, Merrill CEO John Thain sold the company to Bank of America for $50 billion, triggering a $25 million payout under Kraus's contract.
Bank of America got a $25 billion capital injection from the government. Kraus resigned and collected his cash, taking a job as CEO of AllianceBernstein, a money-management firm. And then he bought, for an estimated $37 million, an apartment at 720 Park Avenue from Democratic fundraisers Carl Spielvogel and Barbaralee Diamonstein-Spielvogel.
He suckered Merrill Lynch into a pay guarantee, and had the gall to hold Merrill and Bank of America to his contract, even though he only worked a couple of days.
Illegal? No. Unseemly? Yes.
8 comments:
It's a nice pad.
It only shows how so many Wall St execs. are suckers - not him, those who hired him.
And this is who we get to fix the problem?
Unless this is tougue in cheek - Peter Kraus aint African American!
Hey DV, why would you post Peter Kraus has AA?
Nice spread. How do you conclude he's black? From the African art? If so many whites have African pieces in their homes especially in NYC.
How did you come to the conclusion that he's black,his name
is peter kraus sounds like the same good ole white boys network
to me.
He doesn't look African American - and the name Peter Kraus doesn't immediately scream BLACK to me...
He's not black Anonymous.
I was being facetious.
If a brotha had hit up the "bailout" for $25 Mil, and copped a $37 Million dollar apartment the media would Willie Horton his ass.
Ok , thanks that's clears that up then. Happy New Year D V as we head into 2009!
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