Bailout edges and Their Bonuses
4,793 that’s the number of bankers and brokers on Wall Street that received bonuses last year for at the minimum $1 million. You would think that with the harsh economic times of last year there would be hardly any bonuses at all. What’s more, you’d think that Wall Street should have wised up and realized that the payments they were making wasn’t getting them the performance they wanted.
Citigroup paid out bonuses to 738 employees for $1 million or more, this despite the bank reporting a $27.7 billion loss and receiving $45 billion in bailout cash. Bank of America and Merril Lynch paid out 838 $1 million plus bonuses last year and also received $45 billion in bailout cash.
The list goes on. Goldman Sachs has 953 bankers they paid $1 million or more and Morgan Stanley had 428. JPMorgan Chase paid a whopping 1,626 bankers bonuses of $1 million or more. With these edges posting losses or modest gains, why exactly are there so many large bonuses to give?
Do the brokers and bankers that receive these bonuses feel that they deserve them? How do the companies themselves feel that these bankers have deserved these bonuses? How is a company that has been pushed near the point of bankruptcy giving out already a single $1 million bonus?
These are the questions that most Americans don’t know the answers to. With jobless rates at a decade high, there’s a sense that maybe the big US edges should be tightening their belts a simply they have been. Especially those that are taking money from all of us in order to help them by this hard economic time.