Wall Street Bonuses Surge 14 Percent Despite Dismal Earnings

AP:

This might have been one of Wall Street's most dismal years in a decade, but that hasn't stopped bonus checks from rising an average of 14 percent.

Four of the biggest U.S. investment banks -- Goldman Sachs Group Inc., Morgan Stanley, Lehman Brothers Holdings Inc. and Bear Stearns Cos. -- will pay out about $49.6 billion in compensation this year. Of that, bonuses are traditionally estimated to represent 60 percent, or almost $30 billion.

But that might not sit well with investors who held on to investment bank stocks this year -- and watched them plunge by up to 45 percent. Investment houses have been slammed by the credit crisis, and top executives this past week said they've yet to see a bottom.

Read the whole story: AP

Comments

[Justinpassing]

ONE WORD: GILLOTINE

[Mike169]

This is as it should be. Why do we expect otherwise? Doesn't anyone understand capitalism in the age of Bush?

[WIpatriot]

"But that might not sit well with investors..."

One wouldn't think so.