Bonus season is fast approaching and never will it be as scrutinized. With the country facing its worse financial crisis since the Great Depression and taxpayers forking over $700 billion to bail out the nation’s financial institutions, some self restraint would seem to be in order–or at the very least the politically smart move, writes the Finance Professor.
Yet, according to this Bloomberg article, Wall Street won’t be deterred from paying bonuses this year. Merrill Lynch has allocated $6.7 billion, Morgan Stanley has put aside $6.44, and Goldman Sachs Group has $6.85 billion for bonuses.
Most people don’t understand that for Wall Street, more than 70% of yearly income comes from”Bonuses”. It doesn’t matter. If you want to cause civil unrest, I dare the bankers of Wall Streeet to take Billions in bonuses when the tax payers have just shoveled out $700 Billion to save your hide.
Don’t be stupid.