Despite Greed Wall Street will give out Billions in Bonus Money.. WTF - New England Patriots Forums

***DarrylS*** · 10-28-2008, 11:29 AM

Saw this on the news last night, made me want to break the TV.. the wall street gluttons will continue feeding from the never ending teat of greed.. the bonuses will continue, despite most folks loosing big bucks... this is an non partisan issue and deserves much attention..

How Washington's Bailout Will Boost Wall Street Bonuses - TIME

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Uncle Sam has a new name on Wall Street — Sugar Daddy. Bonuses for investment bankers and traders are projected to fall by 40% this year. But analysts, compensation consultants and recruiters say the drop would be much more severe, perhaps as much as 70%, had it not been for the government's efforts to prop up the financial firms. "Year-end pay on Wall Street will be higher than it would have been had it not been for the government and mergers," says Alan Johnson, a leading compensation consultant. "You would expect it to be down much more."

Johnson predicts the average managing director at an investment bank, a title typically earned around eight years on the job, will receive a bonus of $625,000. That's down from nearly $1.1 million last year, but it is still 15 times the income of the average American household. Top bankers could receive as much as $1 million. Even a bond trader just out of business school could see his or her bank account enriched by as much as $170,000 this Christmas. "The firms have had an extremely difficult year," says Joan Zimmerman, a Wall Street career coach. "But they can't afford

Bloomberg.com: Exclusive

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Oct. 27 (Bloomberg) -- Five straight quarters of losses and a 70 percent slide in its stock this year haven't stopped Merrill Lynch & Co. from allocating about $6.7 billion to pay bonuses.

Goldman Sachs Group Inc. and Morgan Stanley, both still on track for profitable years, have set aside about $13 billion for bonuses after three quarters, down 28 percent from a year ago. Even some employees at Lehman Brothers Holdings Inc., which declared the biggest bankruptcy in U.S. history last month, will get the same bonus they received a year ago.

The worst financial crisis since the Great Depression, a $700 billion taxpayer bailout, public outcry over excessive pay and the demise of three of the biggest securities firms won't deter Wall Street from offering year-end rewards to employees on top of their salaries, compensation experts say.

``Critical producers and critical managers will be retained with the same bonus they had last year,'' said Robert Sloan, head of U.S. financial-services recruiting at Egon Zehnder International, a New York-based executive-search firm. ``The others will see sharp cuts.''

***BelichickFan*** · 10-28-2008, 12:33 PM

Without getting into specific numbers, companies still need to retain their best employees and while those numbers look high to you and me they are still down 40% from last year.

mcgraw_wv · 10-28-2008, 12:42 PM

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Originally Posted by BelichickFan

Without getting into specific numbers, companies still need to retain their best employees and while those numbers look high to you and me they are still down 40% from last year.

You mean down 40% from last years RECORD BREAKING bonuses? Should they really be compared to the largest bonus payout for financial businesses in history? What's the percentage drop for the average bonus over the last 10 years?

***BelichickFan*** · 10-28-2008, 12:52 PM

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Originally Posted by mcgraw_wv

You mean down 40% from last years RECORD BREAKING bonuses? Should they really be compared to the largest bonus payout for financial businesses in history? What's the percentage drop for the average bonus over the last 10 years?

Like I said, I'm not going to get into the Politics of Envy by geting into specific numbers; although when Average Joe complains his 401K is down by 40% or so, that is also from a record high not an average of the last 10 years so I'm not sure what the difference is.

Anyway - hate away, it's all good.

***DarrylS*** · 10-28-2008, 12:53 PM

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Originally Posted by BelichickFan

Without getting into specific numbers, companies still need to retain their best employees and while those numbers look high to you and me they are still down 40% from last year.

So despite their practices that have contributed heavily to this economic situation, it is ok to do this?? .. the number of people out of work and loosing money is astronomical, all they while it is ok to do this??? Their greed and speculation are the major causes of this.

***BelichickFan*** · 10-28-2008, 12:58 PM

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Originally Posted by DarrylS

So despite their practices that have contributed heavily to this economic situation, it is ok to do this?? .. the number of people out of work and loosing money is astronomical, all they while it is ok to do this??? Their greed and speculation are the major causes of this.

Make whatever macro moral assumptions that you want to - at the company level they still need to retain their best employees and this is how they do it. They could punish them and not give out bonuses - and watch they all be hired by other companies.

mcgraw_wv · 10-28-2008, 01:01 PM

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Originally Posted by BelichickFan

Like I said, I'm not going to get into the Politics of Envy by geting into specific numbers; although when Average Joe complains his 401K is down by 40% or so, that is also from a record high not an average of the last 10 years so I'm not sure what the difference is.

Anyway - hate away, it's all good.

I'm not hating their ability to make money. I am furious that they are still getting million dollar bonuses at the expense of the tax payers.

In this economy, espeically on Wall Street, if you did not pay your best employee a million dollars, do they have many options for employement where they will get a million dollar bonus.

It's BS and you know it... Supply and demand, there is no demand for financial brokers, and bankers right now, yet they still get the salary as if demand was high, AT THE EXPENSE of the tax payer.

As far as I am concerned, the US is a major stock holder in these banks and we should have a say on bonuses... A bonus is not a right, it is bonus, and in times where a company loses all that money, a bonus should not be paid out. If they were a private company I have no problems, but they are public, and that means that stock holders, and people with large accounts at these firms have a higher chance of not seeing a return of their money due to these companies paying out so much money in bonuses...

And now that they recieved this kind of bail out, bonuses should be off limits.

PatriotsReign · 10-28-2008, 01:03 PM

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Originally Posted by BelichickFan

Without getting into specific numbers, companies still need to retain their best employees and while those numbers look high to you and me they are still down 40% from last year.

Up, down...who gives a shee-ite BF. NO ONE has done a good job since they're all on the verge of collapse and no one should get a bonus for doing a crappy job.

Now word has it the banks are hoarding the $$ that WE lent them to engage in mergers and acquistions. "IF" that happens, all hell is gonna break loose my friend. We lent them that money so they would L-E-N-D. But they're not lending.

When we lend them money for a particular reason, they are to use it for that reason. They WILL do what we told them to do.

Screw all those greedy defiant fools.

mcgraw_wv · 10-28-2008, 01:03 PM

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Originally Posted by BelichickFan

Make whatever macro moral assumptions that you want to - at the company level they still need to retain their best employees and this is how they do it. They could punish them and not give out bonuses - and watch they all be hired by other companies.

I am willing to bet that there is a over supply of banking professionals and brokers in NY right now... I don't see the demand for such compensation.

Supply and Demand only applies when its the low man that is getting squeezed with Gas prices and salary... the Rich don't play by the same set of rules.

***BelichickFan*** · 10-28-2008, 01:10 PM

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Originally Posted by PatriotsReign

Up, down...who gives a shee-ite BF. NO ONE has done a good job since they're all on the verge of collapse and no one should get a bonus for doing a crappy job.

When the Patriots got punked by the Dolphins and the the Chargers did every single player play like crap ? I'm guessing not and you know better.