So that's get this right, we nearly enter a financial apocalypse, all investment banks shares drop spectacularly, and the US government give them a $700bn bailout... and with this money they give themselves a $70bn pay out... Ever feel you've been 'ad?! http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking
You've got one key point wrong. They already have this money saved up - they are not tapping the 700bn to pay these bonuses. They are no less outrageous, in fact, even more so. These banks had plenty of assets to shore up their balance sheets but instead of using that cash to keep the banks solvent they just decide to pay that money out in bonuses causing the need for the bailout. It is absurd.
Big bonuses and big campaign contributions were in abundance prefallout. This misuse of funds should be investigated Enron style.
Anyone who didn't see this coming is, well, blind. The feds should withhold bailout money from companies that do things like this.
The bailout was all about helping out the Big Wall Street fat cats. The Democrats are always looking out for their own.