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 Although 2008 has shaped up to be one of the worse years since the Great Depression for Wall Street, neither massive layoffs nor outright bankruptcies will deter year-end bonuses from going out to many bankers.
A Bloomberg report said that Wall Street's banks still have roughly $20
billion set aside to pay bonuses for 2008. Last year, when the situation was far less grim, Goldman Sachs Group Inc., Morgan
Stanley, Merrill Lynch & Co., Lehman Brothers Holdings Inc. and Bear Stearns Cos. paid out a record $39
billion.
A brief run-down of the allocations banks have set aside for bonuses:
However, with all of Wall Street signed on for bailout money, the issue of bonuses is very likely to be a political hot potato, with lawmakers on both sides of the aisle ganging up to decry doling out millions to Wall Street as the country slides further into an economic slowdown. House Financial Services Committee Chairman Barney Frank has already gotten the ball rolling, calling for an industrywide moratorium on bonuses until Wall Street firms figure out a way to curtail excessive risk-taking. - George White See Bloomberg story See Dealscape post on Barney Frank comments See Dealscape post on J.P. Morgan bonuses CategoriesComments
From: Antonio,
I'm all for rewarding strong performers, but let's be realistic. In this environment, these people should be lucky to still have salaries! I agree the assets set aside for bonuses should be frozen, the "talent" who remains despite bonuses, will be the star performers who know they'll get another chance next year.
Posted on:
October 28, 2008 1:13 PM
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Are you kidding me? The feds need to freeze their assets or something to keep these bonuses from being paid out to the sorry SOBs who are responsible for the mess we are in. Personally, I'd love a deal like this. Screw up but rake in the cash. Puh-leeeeze!