Goldman Sachs, Morgan Stanley, Bank Of America Bonuses To Shrivel

New York Post:

Indeed, sources said some Wall Streeters will see their bonuses shrink by 25 percent to 40 percent, while others are set to get zilch when year-end payouts are decided next month.

It all comes at a time when compensation is facing extra scrutiny by both federal and state officials, including US Rep. Henry Waxman (D-Calif.) and New York Attorney General Andrew Cuomo, who several weeks ago pressed banks to justify the fat bonuses they paid to executives.

The pullback on bonuses stands in stark contrast to last year, when Goldman set aside a whopping $20 billion to pay compensation and salaries to its workers.

This year, Goldman, Morgan Stanley and Bank of America combined might be allocating $20 billion to pay employees, according to Bloomberg.

Read the whole story: New York Post

Comments

[twofish]

I saw the boss come a-walkin' down along the factory line,
He said, "We all have to tighten up our belts."
But he didn't look any thinner than he did a year ago
And I wonder just how hungry that man felt.

He knows it ain't too hard to get along with somebody else's troubles,
They don't make you lose any sleep at night.
Just as long as fate is out there burstin'somebody' else's bubbles.
Everything is gonna be alright.
And everything is gonna be alright.

-- Steve Goodman, "Somebody Else's Troubles"

[schatsie]

they will keep getting bonuses as long as the bonuses are subject to CAPITAL GAINS TAXES INSTEAD of INCOME TAXES..

The first thing Obama should do is make the WALL STREET compensation subject to INCOME TAXES....NO MORE TAX BREAKS FOR THESE JERKS....

[mrcontinental]

Sure they are. These clowns can go to the discount window at will and get as much cash as they want with no one the wiser and they expect us to believe they aren't pocketing any of it? They are laughing at every last one of us for being a bunch of cowardly idiots who folded as soon as they said recession.

[research]

Perhaps they need a new incentive plan:

Do your job and get paid your enormous salary,

or you're fired.

You can go on pure commissions if you want.

[Haditup2here]

Amen to that !!

[Icantbelieveher]

I'm having a difficult time feeling sorry for them!

[heal57]

Same here; it's pathetic.

[spinns17]

ya now there just going to steal it from the people that work for them.

[munki]

Amount based on performance? not just an individual performance but... the overall!
Why? because we, the taxpayer is the shareholder so I believe I have one vote of say...

[BillMelater]

I'll believe it when I see it. They will merely figure some other way to bilk the public.

http://billmel8er.wordpress.com

[January]

Yeah, me too ":System may change forever"? I’ll believe it when I see it.

I thought I had seen all the ways the finance industry plays both sides against the middle, until UBS now is turning in to the tax authorities the very people they advised how to avoid taxes. That’s beyond irony, which finance never cared much for anyhow.

The system is rigged. It is rigged to be so big and complicated that somehow somewhere there is a back door for those responsible to avoid responsibility. That’s the true character of capitalism. Steal a loaf of bread and do time in jail. Steal a billion dollars and be worshipped as a hero.

[darthdarcy]

"Oh no; you mean we'll have to earn our money, like like like the rest of the suckers out there..!"

"It's not fair I tell you, we're special..!"

[bbridges1962]

And America wonders why crime and suicide rates are up....

[research]

And heart attacks.

[tompoe]

For the mathematically challenged, it would seem informative if we had the total number of employees getting bonuses. My feeble brain looks at 20,000,000,000 and starts lopping off zeros. There are nine zeros, if lopped off, would give 1 billion employees $20 each. Six zeros would give 1 million employees $20,000 each. Five zeros would give 100,000 employees $200,000 each. So, these guys get salaries, and hundreds of thousands of dollars in bonuses . . . for what? Did I do that right?

[meede]

I'm sure there would be a number of citizens that would offer up their house to be used as a jail for all these CEO's and government people being there are not enough spaces in the system to contain all the individuals who have abused this bailout and caused the financial meltdown in the first place in America and echoing around the world. I sure would and the citizens of the land could be guaranteed that the wardens in our jails would look like teddy bears compared to people like myself. Palin called herself a pit-bull -- she's an appetizer to me.

[meede]

The fire sale bailout for which they kept saying there would be no golden parachutes -- seems they kept verbalizing it but neglected to include the terms on paper when bailout presented for signing.

Dear Mr. President Elect: Your first order of business when taking office is to Fire the a.s.s.e.s. of Reid & Pelosi as they too were on the front line of this fire sale bailout and neglected to protect the American citizens. If you thought the rest of the world hated us before -- you ain't seen nothing yet as this tax fiasco snuck in by Treasury and these further payouts to CEO's that have continued to go on -- there is no recovery in the eyes of the rest of the world and their markets meltdown because of the US Wall Street greed. When UK/Europe aided their banks, the terms included no CEO bonus/parachutes.

[mabell75]

The Bush adminstration is behind this back room stuff as usual, not Pulosi and Reid. They are the most corrupt politicians ever and notice how as soon as the election is over, they have resumed their unfavorable policies. GWB hid for the entire election season, but now he is availalble to try and influence where the US is positioned for many years to come.

[meede]

I know Bush & Paulson were first in line but Pelosi & Reid were standing their driving it too. Talking the terms of no golden parachutes or bonuses but they never rejected the final paper agreement as presented for signing on. Pelosi & Reid were pushing to get the Reps signed on (which I agree with) but they missed the excluded terms as they were too busy including the pork to get the bill signed. Therefore see them as responsible as Bush & Paulson.

[TrooAmerican]

I guess i need more explanation as to why any bank that has to be loaned cash or have a bailout could possibly justify bonuses at all?

If some of these banks arent in trouble, then i guess they can say they did a good job of keeping risk out of their companies... BUT.... if they contributed to the economic mess our nation is in right now, then they need to be held accountable too and penalized severely.