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Latvian ‘Robin Hood’

On Thursday I blogged that fiscal stimulus and bail outs may improve economic performance in the short run, but rarely in the long run.  Often these bailouts are accompanied by mandatory salary decreases for key company leadership.  It turns out that these bailouts may not even help in the short run…unless you are a company CEO.

A hacker nicknamed the Latvian Robin Hood gained access to confidential tax documents detailing that paycuts promised by the top brass of firms receiving bailouts often never materializes.

Data leaked so far includes pay details of managers from a Latvian bank that received a bail-out.  It reveals that many did not take the salary cuts they promised.  Other data shows that state-owned companies secretly awarded bonuses while publicly asking the government for help.

With Latvian unemployment nearing 23%, the public mood generally supports the Robin Hood Hacker and feels resentment at the company leaders who accepted public funds without sacrificing their own salary.

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