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Bonuses on Wall Street surge 14 percent (Did boss up yours too)
MSNBC ^ | Dec 21 2007 | ap

Posted on 12/21/2007 1:14:32 PM PST by ex-snook

NEW YORK - This might have been one of Wall Street's most dismal years in a decade, but that hasn't stopped bonus checks from rising an average of 14 percent.

Four of the biggest U.S. investment banks — Goldman Sachs Group Inc., Morgan Stanley, Lehman Brothers Holdings Inc. and Bear Stearns Cos. — will pay out about $49.6 billion in compensation this year. Of that, bonuses are traditionally estimated to represent 60 percent, or almost $30 billion.

But that might not sit well with investors who held on to investment bank stocks this year _ and watched them plunge by up to 45 percent. Investment houses have been slammed by the credit crisis, and top executives this past week said they've yet to see a bottom.

(Excerpt) Read more at msnbc.msn.com ...


TOPICS: Business/Economy
KEYWORDS: bearstearns; bonus; economy; goldmansachs; lehmanbrothers; morganstanley; wallstreet
Economy great on Wall Street.
1 posted on 12/21/2007 1:14:34 PM PST by ex-snook
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To: ex-snook
Economy great on Wall Street.

Not so good for people who invested in real estate.

2 posted on 12/21/2007 1:22:53 PM PST by rocksblues (Just enforce the law!)
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To: ex-snook
Good news!
3 posted on 12/21/2007 1:24:58 PM PST by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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To: ex-snook

What is this “bonus” thing they speak of? It sounds like their company just gives them money for no reason. I don’t understand it.


4 posted on 12/21/2007 1:25:50 PM PST by READINABLUESTATE ("life is dangerous")
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To: rocksblues

Hey, those guys at Goldman Sachs that made their firm about $10B by essentially shorting the housing market, ought to get a nice stocking stuffer this year.


5 posted on 12/21/2007 1:26:03 PM PST by L,TOWM (Liberals, The Other White Meat)
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To: ex-snook

It’s going to have to last them for awhile.


6 posted on 12/21/2007 1:26:30 PM PST by Fitzcarraldo
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To: ex-snook
(Did boss up yours too)

As a matter of fact, my boss DID say "up yours!"

(Just kidding)

7 posted on 12/21/2007 1:29:33 PM PST by Larry Lucido (Hunter 2008)
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To: ex-snook

Hmmm...I’m not one to complain about bonuses, but the share prices of all these companies have decreased. Shareholder value is the number one purpose of a publically traded

As an investor in some of them, and a Morgan Stanley client, I’m annoyed.

BTW...I own a small (15 persons) business. We gave our employees over a $1000 each for Christmas, before we even looked at bonuses for the officers.

Here’s the REAL story: Many on Wall Street have become LIBERALS...easy money often begets Liberal Guilt. I’m more annoyed that a bunch of elite Democrats are getting bonuses while their shareholders suffer.


8 posted on 12/21/2007 1:30:12 PM PST by rightinthemiddle (Guess what? I'm voting for the Conservative.)
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To: ex-snook

That explains the stock market the past two days. Even for an option expiration the intervention both private and public was pretty obvious.


9 posted on 12/21/2007 1:39:30 PM PST by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: L,TOWM

**** we have a winner ******


10 posted on 12/21/2007 1:39:53 PM PST by Kid Shelleen (Aztlan My Azz: La Raza is Spanish for Tan Klan)
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To: Larry Lucido

Aw, ya beat me. That was too easy.


11 posted on 12/21/2007 1:40:08 PM PST by jdm
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To: jdm

I’m the boss, and I didn’t pay me a bonus this year. I got the workers each a gift certificate, though. (And no, it wasn’t the “Jelly of the Month Club”!)


12 posted on 12/21/2007 1:41:57 PM PST by Larry Lucido (Hunter 2008)
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To: jdm

Speaking of which: http://www.youtube.com/watch?v=1K8-kNuDgoA


13 posted on 12/21/2007 1:46:46 PM PST by Larry Lucido (Hunter 2008)
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To: ex-snook
Mine was upped big time!!

4 times what it was last year.

14 posted on 12/21/2007 1:52:06 PM PST by Jersey Republican Biker Chick (RIP Eric Medlen. You will be missed.../ Get well Soon John Force!!!)
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To: Larry Lucido

You bought all the KY Jelly, didn’t you?


15 posted on 12/21/2007 1:53:17 PM PST by Jersey Republican Biker Chick (RIP Eric Medlen. You will be missed.../ Get well Soon John Force!!!)
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To: READINABLUESTATE; Toddsterpatriot
"What is this “bonus” thing they speak of? It sounds like their company just gives them money for no reason. I don’t understand it."

Beats me but maybe Toddster can help. Perhaps he can tell just how Wall Street companies make so much money and who is really getting hosed.

16 posted on 12/21/2007 1:54:20 PM PST by ex-snook ("Above all things, truth beareth away the victory.")
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To: rightinthemiddle
but the share prices of all these companies have decreased.

Not so, my friend.

The Dow is up 8% year-to-date, and NASDAQ is up 10% year to date.

CNBC, the main financial news source in the country, has been trying to push the economy into recession the past three years, even longer.

Yet employment remains at record highs. Corporate profits remains at record highs.

Personal and family income just hit record highs, and the Gross National Product GNP just came in at a 4.9% growth rate, and will probably be revised upwards as it has in most quarters the past few years.

Consumer and retail spending in November had the best month in four years, and set another record.

Exports and imports are growing exponentially, bringing with it profits for millions of Americans.

Did Morgan Stanley or Merrill Lynch or CitiGroup have good years? Nope.

But relatively speaking, they are a small segment of the economy.

Thank heavens the Fox News Network has started a competitive finance channel to rebutt CNBC with some fair and balanced economic news showing the economy is OK, and NOT in depression like CNBC implies day after day.

In the 1990s, liberal oriented CNBC did pie-in-the-sky fantasy stories month after month after month, thereby pushing investors to believe the Clinton economy was fabulous, when it in fact was built on phantom earnings from AOL, Lucent, Juniper, Microsoft, Cisco, Global Crossing, and dozens of other companies whose market value was in the billions yet they were running red ink year over year over year.

When a company give a bonus to employees, that is a good thing.

One always has the option of selling their stock, or quitting if they don't like the 'private' decisions made by private capitalist companies.

17 posted on 12/21/2007 2:01:37 PM PST by Edit35
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To: ex-snook
Perhaps he can tell just how Wall Street companies make so much money

Fee income and trading income.

and who is really getting hosed.

Who is really getting hosed where?

18 posted on 12/21/2007 2:03:01 PM PST by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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To: READINABLUESTATE

What is this “bonus” thing they speak of? It sounds like their company just gives them money for no reason. I don’t understand it.


A lot of these guys are only making $500,000 or $750,000 a year. The real money — the $2 million or or $3 million — is in the bonus, which is (ideally) based on performance.


19 posted on 12/21/2007 2:05:27 PM PST by durasell (!)
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To: Rock&RollRepublican

you make a lot of good points about some networks trying to wreck the economy but if bonuses are (ideally) based on performance and their stock is down 40-50%, I think the stock holders have a point in asking “what’s up with that?” . Also they are not private decisions made by private companies. They are public decisions made by MANAGERS (not owners) for the shareholders. If I don’t like a decision made by one of my managers I should be allowed to question it.


20 posted on 12/21/2007 3:57:17 PM PST by no-no bad dog
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To: no-no bad dog
you make a lot of good points about some networks trying to wreck the economy but if bonuses are (ideally) based on performance and their stock is down 40-50%,

That is a good reason for the CEO and upper management to have a reduced bonus.

I think the stock holders have a point in asking “what’s up with that?” .

Some traders have contracts or agreements that give them a % of their trading profit for the year. If they made millions, while the company lost millions, the trader is still entitled to their bonus.

If I don’t like a decision made by one of my managers I should be allowed to question it.

You bet. And if you don't want to give a top trader a portion of his profit, I'm sure another company will.

21 posted on 12/21/2007 4:01:53 PM PST by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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To: ex-snook

Great for Wall Street, not so great for the country. Because the average worker who got a 2 percent raise this year (and no bonus) sees this story, and then the idiot goes and votes for the communist dems to get revenge.


22 posted on 12/21/2007 4:06:45 PM PST by mysterio
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To: mysterio

You get the point completely. The idea is to pursue policies that make 50+% of the electorate satisfied with the economy. Reliance on private industry or reliance on government - majority wins on election day.


23 posted on 12/21/2007 4:18:08 PM PST by ex-snook ("Above all things, truth beareth away the victory.")
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To: mysterio

Average wage was up over 4% this year. Why do you think most people get no bonus?


24 posted on 12/21/2007 4:49:51 PM PST by rb22982
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To: no-no bad dog
If I don’t like a decision made by one of my managers I should be allowed to question it.

True enough.

But in that vein, if stockholders disagree with decisions made by the MANAGER, then they have the right to fire that manager -- and the stockholders have chose not to do so in most cases involving Wall Street corporations.

Merrill Lynch being the exception with John Morris??, who was recently canned for betting too heavily on bonds? real-estate backed bonds?

Also, at what point is an "owner" of a company too trivial to "question" the manager.

If I own 50 shares of IBM, do I have the same right to confront as someone holding 2 million shares of IBM?

Again, the only sectors who are hurting are ONE segment of the financials, and the homebuilders.

All other Wall Street sectors are doing very well, thank you very much.

25 posted on 12/21/2007 7:47:03 PM PST by Edit35
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To: ex-snook
I heard on the radio yesterday that the CEO of Morgan Stanley wasn't getting his bonus... approx 40 Million, due to poor performance.
26 posted on 12/21/2007 7:57:21 PM PST by csvset
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