The stock market is excited about the Federal Reserve's economy-stimulating decision to buy back $600 billion in U.S. Treasurys, but do you know what's really exciting Wall Street? The fact that bonuses are probably going to be up this year. After studying data, a compensation expert was amazed, "I did not expect compensation would come back the way it has. I underestimated the industry’s resiliency." The industry's resiliency to pay itself lots of money?
According to Dealbook, Alan Johnson's "survey shows that overall compensation in financial services will rise 5 percent this year, with employees in some businesses like asset management getting increases of 15 percent." And Dealbook found another sign of flusher times: "Hot new restaurants are opening, and they are packed with traders and investment bankers. John DeLucie, the chef and one of the owners of The Lion restaurant, one of Greenwich Village’s newest hot spots, said business had been surprisingly strong since it opened in May." DeLucie said that The Lion recently sold a $3,950 bottle of wine (a 1982 Château Mouton Rothschild), "We are seeing a lot of luxury purchases, like vintage Bordeaux, things that we haven’t seen sell well in a few years."