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View Full Version : What Red Ink? Wall Street Paid Hefty Bonuses


tony hipchest
01-29-2009, 05:18 PM
long article... check out the graph. bonuses since '88 look like an internet stock in 2000. a crash is/was inevitable.

http://www.nytimes.com/2009/01/29/business/29bonus.html

By almost any measure, 2008 was a complete disaster for Wall Street — except, that is, when the bonuses arrived.


That was the sixth-largest haul on record, according to a report released Wednesday by the New York State comptroller.

While the payouts paled next to the riches of recent years, Wall Street workers still took home about as much as they did in 2004, when the Dow Jones industrial average was flying above 10,000, on its way to a record high.

Some bankers took home millions last year even as their employers lost billions.

The comptroller’s estimate, a closely watched guidepost of the annual December-January bonus season, is based largely on personal income tax collections. It excludes stock option awards that could push the figures even higher.

The state comptroller, Thomas P. DiNapoli, said it was unclear if banks had used taxpayer money for the bonuses, a possibility that strikes corporate governance experts, and indeed many ordinary Americans, as outrageous. He urged the Obama administration to examine the issue closely.

...

Granted, New York’s bankers and brokers are far poorer than they were in 2006, when record deals, and the record profits they generated, ushered in an era of Wall Street hyperwealth. All told, bonuses fell 44 percent last year, from $32.9 billion in 2007, the largest decline in dollar terms on record.

But the size of that downturn partly reflected the lofty heights to which bonuses had soared during the bull market. At many banks, those payouts were based on profits that turned out to be ephemeral. Throughout the financial industry, years of earnings have vanished in the flames of the credit crisis.

...

On Wall Street, where money is the ultimate measure, some employees apparently feel slighted by their diminished bonuses. A poll of 900 financial industry employees released on Wednesday by eFinancialCareers.com, a job search Web site, found that while nearly eight out of 10 got bonuses, 46 percent thought they deserved more.

KeiselPower99
01-29-2009, 08:57 PM
That is major bs. They dont deserve crap like that and didnt the government tell the auto makers that they couldnt do crap like this???

revefsreleets
01-30-2009, 10:42 AM
You know why they did this?

Because they could. These people are used to doing whatever they want, whenever they want, however they want to do it. The government handed them a blank check, basically gave them a mulligan, and added no oversight or stipulations. It's sickening, but should surprise no one...

tony hipchest
02-04-2009, 04:13 PM
http://www.usatoday.com/news/washington/2009-02-04-obama-executives-cap_N.htm?csp=34

Obama limits exec pay to $500,000 for bailed-out firms

WASHINGTON — President Obama on Wednesday imposed a $500,000 cap on executive pay for companies that get federal bailout money.
"In order to restore our financial system, we've got to restore trust," Obama said. "And in order to restore trust, we've got to make certain that taxpayer funds are not subsidizing excessive compensation packages on Wall Street."

Obama said the lavish bonuses for some Wall Street executives are "shameful." He bemoaned a "culture of narrow self-interest and short-term gain."

....

As part of the reforms announced Wednesday, top executives at firms receiving help from the government will have their compensation capped at $500,000 — "a fraction of the salaries that have been reported recently," Obama said.

If executives receive any additional compensation it will come in the form of stock that can't be paid until taxpayers are paid back for their assistance.

Companies receiving federal aid will have to publicly disclose any perks and luxuries senior executives get and explain to taxpayers and to shareholders why these expenses are justified.

Obama also said he is ending "massive severance packages we've all read about with disgust; we're taking the air out of the golden parachute."

He said the guidelines are the beginning of a long-term effort to look at how executive compensation has ruined the financial system.

"We're going to be taking a look at broader reforms so that executives are compensated for sound risk management and rewarded for growth measured over years, not just days or weeks," he said.
these millionaires and billionaires are gonna be pissed. they may need to take on a night job just to make ends meet.

X-Terminator
02-04-2009, 07:31 PM
Wow...I can see Rush Limbaugh frothing at the mouth already...

SteelCurtain7
02-04-2009, 07:46 PM
He has good reason to.

Stlrs4Life
02-04-2009, 09:35 PM
Wow...I can see Rush Limbaugh frothing at the mouth already...



I hope he chokes on it then.