Pay at investment banks is soaring right back up to the 2007 levels.

After the government attempted to cap high incomes of Wall Street's investment bankers it looks like they are at it again. Many of us wonder why some bankers make such vast fortunes? It was, we were told, a reward for financial innovation. These days, can you think of any major financial innovation that actually aided society?

The Fed attempted to justify the "financial innovation" pay giving what they felt were good examples. These worthwhile innovations were 1) credit cards - not exactly a new idea, 2) overdraft protection and 3) subprime mortgages. Big bucks for this?

You may argue, capitalism is good, we have a free market system and it's up to the private sector to decide what an employee is worth. But is Wall Street part of the private sector, I think not. Besides the hundreds of thousands of TARP dollars there are huge credit lines extended by the Fed, large-scale lending by Federal Home Loan Banks, the expansion of FDIC guarantees and backing provided to every financial firm considered too big to fail. With all our taxpayer money on the line, financial firms should be acting and regulated like public utilities, not returning to practices of 2007.

Moreover, paying huge commissions and salaries to wheeling and dealing Wall Streeters is not only outrageous, we should have learned it is dangerous.

So why did these Wall Street bankers take such huge risks in the first place? Because the ever increasing bottom line, even if temporary, looks like success! And now we are seeing the return of "rewards" to those who can play their high risk games with federal backing.

If you take a close look, those big paychecks are not being paid because the banks need to keep their best key people, no, they are paying big again because they can! Think about it, they can borrow money for close to nothing and lend at much higher rates, all thanks to those government guarantees. So why not, eat, drink and be merry for tomorrow you may be regulated.

We can only hope the government will come through for us all and carry implement real reform. In 2008 overpaid bankers and Wall Streeters brought the world economy to it's knees. The last thing we need is to give them a chance to do it all over again.

Comments, opinions and questions encouraged. You can contact us at marcia@minocquamortgage.com or go to www.minocquamortgage.com . We look forward to hearing from you.