By JLP | November 12, 2008
Reading assignment: Hard Times, But Big Wall Street Bonuses
Apparently the big banks and brokerage houses are worried that if they don’t pay bonuses this year, their talent will go elsewhere.
Question: Where are they going to go?
I seriously doubt that that’s the real reason banks don’t want to forego bonuses. My guess is that the very people in charge of paying out the bonuses are themselves on the receiving end of a bonus. We’re not talking small potatoes either:
According to a report from financial news agency Bloomberg, Goldman Sachs, for example, has set aside $6.8 billion for bonuses, and Morgan Stanley, $6.4 billion.
Of course neither Goldman nor Morgan Stanley are in as bad a shape as some of the other banks and brokerages. Still, they haven’t had good years. When the results aren’t there, the bonuses shouldn’t be either.