12/11/2008 05:12 am ET Updated May 25, 2011

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

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.

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