Thursday, July 30, 2009

The 'Heads I Win, Tails You Lose' Bank Bonus Culture

Still no riots...... ;-) I highly recommend to read From A Former Goldman Managing Director: How You Finance Goldman Sachs’ Profits via Zero Hedge. Doesn´t make you feel better..... And keep in mind "BASE COMPENSATION ISN`T COUNTED IN THE NUMBERS" and that "greater than $ 3 Mio" can also mean $ 10 Mio ( see Bonus Breakdown ) ......

Schon erstaunlich das die Amis das noch alles so hinnehmen.... Denke spätestens nachdem man From A Former Goldman Managing Director: How You Finance Goldman Sachs’ Profits via Zero Hedge gelesen hat dürften einige mehr als nur die Faust in der Tasche ballen...... Die "Chuzpe" ist schon fast wieder bewundernswert..... Nur zur Erinnerung "DIE GRUNDVERGÜTUNG IST IN DEN U.G. ZAHLEN NICHT ENTHALTEN UND KOMMT ON TOP".... Zudem bedeutet die Formulierung Bonuszahlung größer als 3 Mio $ gleichzeitig das etliche locker 10 Mio $ "verdient" haben ( siehe Bonus Breakdown )

Deal Journal

Andrew Cuomo, New York’s Attorney General, just released a report breaking down compensation at the nine original TARP recipients.
Bank Greater Than $3 Million Greater Than $2 Million Greater Than $1 Million
Bank of America 28 65 172
Bank of New York Mellon 12 22 74
Citigroup 124 176 738
Goldman Sachs 212 391 953
J.P. Morgan Chase 200* - 1626
Merrill Lynch 149 - 696
Morgan Stanley 101 189 428
State Street 3 8 44
Wells Fargo 7 22 62

The following graph is even more "impressive" and puts the bonus pool into perspective to the earnings/losses..... Taken from Cuomo releases ugly details on bank bonuses via R. Winkler

Denke das die nächste Übersicht noch mehr "Freude" verbreitet.... Hier werden die Bonuszahlungen ins Verhältnis zu den erzielten Gewinnnen oder besser gesagt erzielten Verlusten gesetzt...... Dank an R. Winkler ( siehe Cuomo releases ugly details on bank bonuses )

larger version / vergrößerte Version

More via the WSJ

The Millionaire´s Club / Interactive Graph

NYT & Dealbook

All told, the bonus pools at the nine banks that received bailout money was $32.6 billion, while those banks lost $81 billion.

In Thursday’s report, Mr. Cuomo described how Merrill and Citigroup — also the recipient of a big federal bailout — both lost more than $27 billion in 2008, but nonetheless paid a total of nearly $9 billion in bonuses to workers for that year.

Other banks, like Goldman Sachs, Morgan Stanley and JPMorgan Chase, paid out 2008 bonuses that were substantially greater than their profits for the year.

In general, the report said, compensation at major banks “has become unmoored from the banks’ financial performance.”

Mr. Cuomo wrote:
Thus, when the banks did well, their employees were paid well. When the banks did poorly, their employees were paid well. And when the banks did very poorly, they were bailed out by taxpayers and their employees were still paid well.

Bonus Report



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1 Comments:

Blogger jmf said...

Not Quite So Many Million-Dollar Bonuses at JPMorgan NYT DEALBOOK

That report said that JPMorgan had 1,626 people who each received bonuses of more than $1 million last year. The real number of million-dollar bonuses at JPMorgan was — drumroll, please — 1,144, according to JPMorgan, which provided the figure Friday morning.

The discrepancy arose because JPMorgan included workers’ salaries in the data it provided to the attorney general’s office, while all the other banks did not

10:00 PM  

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