Investment Bankers Bonuses Getting Boost from Taxpayer Bailout

Investment banks are also paying rent and utilities. Ridiculous.

Bonuses on Wall Street are misunderstood - they are the bulk of compensation. From what I have read the bonuses will be paid not in cash but in restricted stock that does not vest for up to 7 years. Not really a bonus.

But yes - watch for re-regulation in the near future.

"Investment banks are also paying rent and utilities. Ridiculous."

Ah, spoken like a true banker.

"I don't care how we performed this year. Pay me my million. Do you think it's cheap to look this good? You have any idea how much my wife costs me?"

Well, if the banks are making less money, they'd probably be less inclined to be in their fancy digs. So they should pay less rent. Which will hurt the real estate market which is what everyone here wants.

"Well, if the banks are making less money, they'd probably be less inclined to be in their fancy digs. So they should pay less rent."

I think the point you are missing (remarkably) is that the investment banks' landlords and utility providers were not responsible for the staggering losses the banks suffered nor the consequences suffered by all.

You want to try again?

wall street is in the middle of the adjustment process. We should expect bonuses to be down from 2006-2007 levels, but there will be a mad 'retention of talent' even going on where bonuses are handed out to maintain talent.

Bonuses are given out by generated revenue, so many will see declines. Also keep in mind the job losses on wall street are still early. As time goes on, and consolidation takes place, we will see job cuts rise. Trust me, wall street is not the same! Although I see how the public may be outraged that taxpayer funds are being used and bonuses may not be down as much as expected. I expect it to be done 40-50% for the average worker used to getting bonuses, outside of the 'retention of talent' remark.

Never fear, our elected heroes are hard at work. Henry Waxman (chair of the Committee on Oversight and Government Reform) is looking into banks which have received tax dollars & plan to pay bonuses. Who knows where this will lead to.

Barney Frank also wants for such banks to curtail dividend distributions to share holder and slash bonuses. If he had his wish, bonus payments would probably be darn close to zero.

I can now sleep much better. :)

I think the point you are missing (remarkably) is that the investment banks' landlords and utility providers were not responsible for the staggering losses the banks suffered nor the consequences suffered by all.

You want to try again?

No, I'm not missing your point. What I hear are sour grapes. Employees come first in line. If the brokers earned commission for their firm, they should be paid. If the merger bankers put companies together and earned fees, they should be paid.

Take a look at AIG - that firm was destroyed by a small group of people in Connecticut. The rest got hurt tremendously in terms of their equity value and the earnings power of the firm they work for now. But they are the rest, they weren't the ones who were responsible for the staggering losses and the consequences suffered by all. They are entitled to their wages. As are the utility companies and landlords.

"From what I have read the bonuses will be paid not in cash but in restricted stock that does not vest for up to 7 years."

Actually, going into year-end, if I was at an bank, i would probably want RSUs vs. cash given where many of the banks are trading and opportunity for tax deferral. I'm not smart enough to time the bottom, but getting stock at today's levels seems close enought for government work. My point is that you could see low comp this year compound into big comp in future years just on stock recovery alone.

the fact that this news is coming out now is going to make it harder to actually pay out... also consider what bloomberg says...

"At the end of this year, companies may decide against paying the money accrued for bonuses and instead use part of it to cover severance costs, said Rose Marie Orens, a New York-based partner at Mercer, the human resources consulting unit of Marsh & McLennan Cos., who specializes in executive compensation for financial- service companies. Goldman and Morgan Stanley end their fiscal year in November, and Merrill's ends in December.

``Whether what you see is what they're going to pay, you can't tell yet,'' she said. ``It's highly unlikely they'll add to those numbers and more likely they'll bring them down.'' "

Attorney General Andrew Cuomo the new watchdog on Wall St has warned them if you pay the bonuses watch out....... got to love this guy. He is already going after AIG too.

got to love this guy

yeah right

yeah right

Did you lose your Wall st job or bonus yet :)