Yes, Shameless Bonuses Really Are Back on Wall Street

As expected, Wall Street will resume giving its brokers and bankers big fat bonuses this year. A report from the state budget division estimates that $64.2 billion in bonuses will be handed out in 2010—that's $57 billion more than last year, though still $19 billion less than in 2008. But the crafty financial institutions have adopted an array of creative tactics to quell public outrage over bonuses: the latest strategy is to pay their workers in stock, reports Reuters, that way it won't show up on the tax bill until five years later. Also, guns! (Okay, fine, rumors of guns.)

Like a magic eight-ball full of money, the state budget plan also foretold financier bonuses for the years to come: down in 2011 to $61.9 billion, then up to $71.1 billion in 2012 and $75.7 billion in 2013. But it's not all good news, guys; Gov. Paterson says the city's financial employees should brace for more layoffs this year.

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By Sabrina Jaszi in News on January 19, 2010 4:30 PM

Comments [rss]

books

'you're still f#$king peasants as far as I can see'

glennQNYC

What about the shameless bonuses given Democrat special interest groups for blindly supporting the Obama admistration?

Oxford

This is BS. I expect to get my "bonus" numbers soon and I can tell you few people around me are expecting anything jaw dropping, despite phenomenal numbers this year in our groups. The banks are super paranoid about publicity and are getting hit with taxes, fees and threats of more taxes. Any comp we do get is not real money--it's deferred, restricted stock that we can't touch for 1-5 years. Anyone who went through 2007 knows just how much that kind of promise is worth. I WISH all these bonuses were as "obscene" as the media makes them out to be; sadly they are not.

Dead Himmler

If you were in the banking system before and during the collapse please forget about your precious bonus and kindly die in a fire. I would also approve of a nice hanging.

Oxford

My mistake, turns out our bonuses were obscene after all. :)

Oh, and no I was not in the banking system "before and during" the collapse, nor have I ever touched anything remotely related to sub-prime mortgages, real estate, MBS, CDOs, CLOs, NINJA loans, etc. Of course I'm sure you still think I'm "evil", but, then again, I don't go around making violent comments to complete strangers.

Oxford

Still not sure why it is in the public's interest for banks to withhold bonuses. Saying underpaying employees benefits the shareholders is kind of like saying withholding research and development funding is good for the shareholders. Only in this quarter--not so great when your competitor steals away your top performers. And shareholder interest does not equal public interest either. The govt should stay out of setting people's compensation!!

ed_Extinct

amazing! my tax dollars are being used to fund houses in the hamptons. fucking unreal!

bagelman

whatever, before it was your tax dollars going to houses in the hamptons, it was your labor, 8 hours each day, ad infinitum.

kazubes

I'm more concerned with the banks/auto companies that still owe us our tax money, not the ones who've paid it back and are now paying their people off, even if I resent the absurd amounts they get

Ishtar

Well, these banks are still making money hand over fist on our backs. Those Fed discount rates are killer.

Jim

I wouldn't exactly call it on your back -- lower rates plus open market purchases of mortgages by the Fed have driven mortgage rates to record lows, so if you are a borrower you're benefiting too. If you're a saver that's another story.

Ishtar

Which creates other issues in the lending market, specifically with mortgages.

sidenote

The public is outraged because they have no clue what's actually happening. They're being hosed by the auto companies / a handful of morons that don't know how to hedge at AIG / and the general stupidity of Fannie Mae and Freddie Mac, not the banks.

The banks are going to turn Uncle Sam a nice profit - and the fact that all this comp is being deferred is awful. The government can't tax it and the bankers can't spend it, which just makes everything worse for everyone else. Your outrage is just pouring molasses on the economy.

sidenote

Finally, someone with some perspective. The fact that the banks can even pay bonuses means they are profitable once again and not hemorrhaging cash.

edEx, your tax dollars aren't being used to fund houses in the Hamptons, the banks paid back their loans and the taxpayers made a profit.