A record year for Wall Street pay

Stalin

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Apr 4, 2008
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1,958
This should be enough for a revolution, but, sadly, it is not.

The finance industry is not a service, it is a useless parasite.

"According to the Wall Street Journal, the major US banks and financial firms are on track to hand out a record $140 billion in compensation this year. This is a 20 percent increase from 2008 and $10 billion more than the previous record, set in 2007.

The stock market celebrated the news, outlined in a front-page Journal article on Wednesday, along with the release of JPMorgan Chase’s third-quarter earnings report, which showed a seven-fold increase in profits from last year to $3.6 billion. The Dow Jones Industrial Average rose 145 points, closing above the 10,000 mark for the first time in a year.

The Journal based its estimate on an analysis of the financial firms’ earnings reports for the first half of 2009 and projected earnings for the rest of the year. It predicted the firms’ total revenues would hit $437 billion this year, surpassing the $345 billion they recorded in 2007, before the financial crisis erupted.

The projected $140 billion in compensation includes salary, bonuses, health benefits, retirement plans and stock awards. Average compensation for employees at the 23 firms will top out at $143,000, but this figure obscures the eight-digit sums that will go to the top executives and traders, who will receive a disproportionate share of the total outlay.

The Journal projects that Bank of America, which has not paid back the $45 billion in cash it received in Troubled Asset Relief Program (TARP) funds, will award more than $30 billion in compensation, a 64 percent increase over last year. JPMorgan Chase will pay out $29.5 billion, an increase of nearly 30 percent. Goldman Sachs is on track to dispense $21.8 billion, nearly double its pay tab for 2008. The average Goldman employee will receive over $743,000.

..

The $140 billion in compensation reported by the Wall Street Journal for a section of the financial industry equals the total amount allocated in the administration’s stimulus plan for aid to the states.

To put this sum in perspective, it is more than twice the federal outlay in 2008 for education ($67 billion), close to three times federal spending that year for highways and mass transit ($53 billion), and far in excess of allocations for unemployment benefits ($37 billion); community and regional development ($27 billion); general science, space and technology ($27 billion); training, employment and social services ($26 billion) and housing and commerce ($7.4 billion). The total federal outlay for homeless assistance programs in 2008 was $2.4 billion.

This $140 billion is greater than the gross domestic product of Egypt, a country of 82 million people, slightly less than the GDP of the Philippines (population—96 million) and nearly three times the GDP of Ecuador (14 million).

http://www.wsws.org/articles/2009/oct2009/pers-o15.shtml
 
Werbung:
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This should be enough for a revolution, but, sadly, it is not.

The finance industry is not a service, it is a useless parasite.

"According to the Wall Street Journal, the major US banks and financial firms are on track to hand out a record $140 billion in compensation this year. This is a 20 percent increase from 2008 and $10 billion more than the previous record, set in 2007.

The stock market celebrated the news, outlined in a front-page Journal article on Wednesday, along with the release of JPMorgan Chase’s third-quarter earnings report, which showed a seven-fold increase in profits from last year to $3.6 billion. The Dow Jones Industrial Average rose 145 points, closing above the 10,000 mark for the first time in a year.

The Journal based its estimate on an analysis of the financial firms’ earnings reports for the first half of 2009 and projected earnings for the rest of the year. It predicted the firms’ total revenues would hit $437 billion this year, surpassing the $345 billion they recorded in 2007, before the financial crisis erupted.

The projected $140 billion in compensation includes salary, bonuses, health benefits, retirement plans and stock awards. Average compensation for employees at the 23 firms will top out at $143,000, but this figure obscures the eight-digit sums that will go to the top executives and traders, who will receive a disproportionate share of the total outlay.

The Journal projects that Bank of America, which has not paid back the $45 billion in cash it received in Troubled Asset Relief Program (TARP) funds, will award more than $30 billion in compensation, a 64 percent increase over last year. JPMorgan Chase will pay out $29.5 billion, an increase of nearly 30 percent. Goldman Sachs is on track to dispense $21.8 billion, nearly double its pay tab for 2008. The average Goldman employee will receive over $743,000.

..

The $140 billion in compensation reported by the Wall Street Journal for a section of the financial industry equals the total amount allocated in the administration’s stimulus plan for aid to the states.

To put this sum in perspective, it is more than twice the federal outlay in 2008 for education ($67 billion), close to three times federal spending that year for highways and mass transit ($53 billion), and far in excess of allocations for unemployment benefits ($37 billion); community and regional development ($27 billion); general science, space and technology ($27 billion); training, employment and social services ($26 billion) and housing and commerce ($7.4 billion). The total federal outlay for homeless assistance programs in 2008 was $2.4 billion.

This $140 billion is greater than the gross domestic product of Egypt, a country of 82 million people, slightly less than the GDP of the Philippines (population—96 million) and nearly three times the GDP of Ecuador (14 million).

http://www.wsws.org/articles/2009/oct2009/pers-o15.shtml

A fairly large number of them ought to be in prison.
 
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