Citigroup Bonuses: Bank Pays Millions To London Traders

The timing couldn't be better. With the Obama administration readying new compensation guidelines for certain financial companies, Forbes reported Tuesday that Citigroup hasn't stopped the pre-recession era practice of offering millions to tempt new hires.

Specifically, Forbes points to two London-based bankers, both formerly of Morgan Stanley, who reportedly received guaranteed payouts of $3 million to join Citi. The beleaguered bank defended its pay practices to Forbes, saying that bonuses help preserve long-term profitability.

Last year, as the economy crumbled, Wall Street paid out $18.4 billion in bonuses, which drew the ire of President Obama and a sharp public backlash. In January President Obama called the payouts "the height of irresponsibility."

On Monday, the New York Times reported that the Obama administration is set to announce a broad set of rules for financial companies that have received two rounds of funding from the Troubled Asset Relief Program.

As the NYT reported, Citi is just one bailed out corporate behemoth that may soon face new pay restrictions:

"Citigroup, Bank of America, the American International Group, General Motors and its finance arm, GMAC, which all received two taxpayer infusions, will face the strictest scrutiny from the new federal official charged with vetting compensation, Kenneth R. Feinberg. He is known for overseeing payouts to the families of the victims of the Sept. 11, 2001, attacks."

Read Forbes' full story on Citi's recent bonuses.

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Comments

[Jody Dobis]

Someday in the future, the so called "toxic" assets will become real assets with real value. Since I have yet to know the true meaning and value of toxic assets, I suspect that as time proceeds, toxic assets will become valuable. I wish Frontline would explore what this term means now and what it may mean in the near future.
As to the explanation that no one knows what is in the investment mix of toxic assets, those that assert that view must think the average citizen, which I am part of, is so dumb as to believe that the sellers of these so called investments didn't know what was in the mix. Give me a break. As to those who bought the mix, am I to believe they were that dumb not to ask how the sellers came up with the product price?
Can anyone break down or break out a typical toxic asset bundle? Someone must know.

[Tyler-Durden]

here's your new link, folks:
http://www.whale.to/b/allen_b1.html#chapter3

read and learn.

the gist of it is this whole thing is being engineered by the FED. please read it and comment back

[Tyler-Durden]

this is an article i found yesterday. it explains a lot of things. i am trying to get everyone to read it and pass it on. basically it's about the Fed's manipulation of our govt since it's creation, and how our income taxes go directly to them as payment of interest for their privilege of loaning us the money that we allow them to print for us. it's a complete scam.

http://www.john-f-kennedy.net/thefederalreserve.htm

please read, become aware, and be ready to do something about it. this is the root of our economic troubles, and always has been

[Didactic Curveball]

Pre-TARP days...zero regulation, compliments of the Bush administratoin. Post-TARP handouts...still no regulation.

We're all going to Hell in a handbasket. A system as corrupt as ours deserves to fall and crumble, like every empire in the past that became complacent and greedy and eventually fell to ruins. It's our turn now.

[jim21092]

this makes me soo angry




check this out http://www.youtube.com/watch?v=Ol590TCAD_A&feature=channel_page

[Tyler-Durden]

your link is a simple pyramid scheme. everyone pays $3 a month, and for everyone else they get to sign up, they collect $2. where's the other dollar go? to the top.

[Fullrecovery]

obamageithner are ruining this countries economy

[argyle]

because it was running so well when they arrived.

[jason10006]

The U.S. LENT the money to Citi, they did not GIVE it to them. Even if they preferred shares get converted to common, they did not GIVE it to them, they got a huge stake in the firm in return. When you borrow money from a bank or credit card company, they did not GIVE you the money.

[KCFreedom]

How do I get in on this gig?

[argyle]

Buy some stock. At 3 dollars and change you can pick up some up for your friends too.

[argyle]

that was an extra up

[vernbvb]

What will it take to get this fiasco under control. We evidently don't have serious economists working with the new administration to come up with a plan that will regulate even our overseas businesses. If we allow businesses to be out of control abroad, it still hurts the economy at home and more than that it is a slap in the face to all the hardworking taxpayers in America and to the Obama Administration.

Maybe what we need are new laws which will be strictly enforced with mandatory prison time for all violators. We should prosecute those who accept bailout then wastefully spend money just as any other individual guilty of graft and corruption. What Blagogivich did was not nearly as terrible a crime as what the banks and wall street have done to our economy.

Now is the time to make all recipients of bailout funds accountable to the taxpayers and to the criminal justice system.

[hopeforchangenow]

Our TARP money at work. No more bailouts. Let them fail.

[moUSAnMe]

these guys just make me sick.
where did the money come from? the US ?