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Wall Street banks in $70bn staff payout

Discussion in 'U.S. Politics' started by Stalin, Oct 21, 2008.

  1. Stalin

    Stalin Active Member

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    Once upon a time, you had to take a risk to make a fortune. Not now.

    "..Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year - despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned.

    Staff at six banks including Goldman Sachs and Citigroup are in line to pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted criticism. The government's cash has been poured in on the condition that excessive executive pay would be curbed.

    Pay plans for bankers have been disclosed in recent corporate statements. Pressure on the US firms to review preparations for annual bonuses increased yesterday when Germany's Deutsche Bank said many of its leading traders would join Josef Ackermann, its chief executive, in waiving millions of euros in annual payouts.

    The sums that continue to be spent by Wall Street firms on payroll, payoffs and, most controversially, bonuses appear to bear no relation to the losses incurred by investors in the banks. Shares in Citigroup and Goldman Sachs have declined by more than 45% since the start of the year. Merrill Lynch and Morgan Stanley have fallen by more than 60%. JP MorganChase fell 6.4% and Lehman Brothers has collapsed.

    At one point last week the Morgan Stanley $10.7bn pay pot for the year to date was greater than the entire stock market value of the business. In effect, staff, on receiving their remuneration, could club together and buy the bank.

    In the first nine months of the year Citigroup, which employs thousands of staff in the UK, accrued $25.9bn for salaries and bonuses, an increase on the previous year of 4%. Earlier this week the bank accepted a $25bn investment by the US government as part of its bail-out plan.

    At Goldman Sachs the figure was $11.4bn, Morgan Stanley $10.73bn, JP Morgan $6.53bn and Merrill Lynch $11.7bn. At Merrill, which was on the point of going bust last month before being taken over by Bank of America, the total accrued in the last quarter grew 76% to $3.49bn. At Morgan Stanley, the amount put aside for staff compensation also grew in the last quarter to the end of August by 3% to $3.7bn.

    Days before it collapsed into bankruptcy protection a month ago Lehman Brothers revealed $6.12bn of staff pay plans in its corporate filings. These payouts, the bank insisted, were justified despite net revenue collapsing from $14.9bn to a net outgoing of $64m.

    None of the banks the Guardian contacted wished to comment on the record about their pay plans. But behind the scenes, one source said: "For a normal person the salaries are very high and the bonuses seem even higher. But in this world you get a top bonus for top performance, a medium bonus for mediocre performance and a much smaller bonus if you don't do so well."

    Many critics of investment banks have questioned why firms continue to siphon off billions of dollars of bank earnings into bonus pools rather than using the funds to shore up the capital position of the crisis-stricken institutions. One source said: "That's a fair question - and it may well be that by the end of the year the banks start review the situation."

    Much of the anger about investment banking bonuses has focused on boardroom executives such as former Lehman boss Dick Fuld, who was paid $485m in salary, bonuses and options between 2000 and 2007.

    http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking

    The guardian is a good source of information because it is owned by a non-profit trust, unlike most other mass media which are usually ownd by businesses or corporations with an agenda.

    Comrade Stalin of Fleet Street.
     
  2. Stalin

    Stalin Active Member

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    Just to hammer home the point, if those in charge of a bank are paying themselves more in annual bonuses than the bank is worth, what do you think is going to happen to any money paid into the coffers by the government ??

    There is a word for this. The word is FRAUD.

    Inspector Stalin of the Surete
     
  3. khothla

    khothla New Member

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    Think, man Think !!!

    Why are these fcukers being paid this huge Bribe to keep quite.

    Bush's "War on Terror" has finally come home to roost.
    The "War on Terror" was to get American's scared enough, so that they will
    be sh-it scared to uprise when this looting takes place.

    This money will not be in America for long, it is going out of America, and Americans don't even have the resisting power to rise up to these Crooks.

    What has happened to the fighting spirit of the Americans ?

    Did the sitcoms make you guys soft like a mash potato ?

    Now, do you believe that Bush & his cronies, knew that 9/11 had to take place, so that the Gestapo Laws could be implemented, for this Scam to take Place, Wake Up....You Americans, you've been sleeping for far too long now, Awake from your Slumber and resist these Alien Thugs within your midst.

    Seriously, it's time for another American Revolution.
     
  4. BigRob

    BigRob Well-Known Member

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    Uhm, a bank pays a bonus to an employee so Bush knew about 9/11? Quite the logic you employ here.
     
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