Posted on 09/01/2007 6:41:02 PM PDT by oblomov
old that Porsche? The Wall Street bonus picture is bleaker, by Street standards at least.
While the summer may have started with the long-term bonus outlook for Wall Street seemingly strong, it's ending with bankers and traders expecting lower bonuses, or even layoffs.
It's still early to be getting a firm read, but given the subprime crisis, credit crunch and market unrest, the early talk is of lower payouts for the first time in five years, especially in fields related to fixed income, hedge funds and alternative investments. (Many people in Wall Street jobs get most of their compensation through their bonus, not the base pay.)
Six Digits, but ...
A report by New York consulting firm Options Group said Wall Street bonuses are expected to drop about 5% for 2007. The average Wall Street bonus in 2006 was $137,580, according to the New York state comptroller's office, up 15.2% from $119,390 in 2005.
That isn't just a downer for Wall Street professionals but might also be a drag on New York's hot real-estate market. The New York housing market is propped up by young Wall Street employees doling out millions of dollars for condos and luxury homes, thanks to their hefty bonuses.
"Lower fixed-income profit results will drag overall bonuses lower since they've generated at the global banks such a significant percentage of overall revenue in recent quarters," said the Options Group report.
Combined net income -- the key figure for determining bonuses -- of Goldman Sachs Group Inc., Bear Stearns Cos., Lehman Brothers Holdings Inc., Merrill Lynch & Co. and Morgan Stanley was more than $30 billion at the end of fiscal 2006, which ended at different brokerage firms in November or December of that year.
(Excerpt) Read more at online.wsj.com ...
I seem to have difficulty working up any sympathy.
So bonuses plunged from $137,580 to $119,390...
President Bush, we need a bailout for these poor victims.
Chucky Shumer, where it your Wall Street Bonus Relief Plan?
Bernanke BETTER cut the Fed funds rate so we can restore their six-figure bonus.
Have you hugged your investment banker today?
Just stunned.
My sympathy meter is at....Minus 20.
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