Monday, October 27, 2008

Broken Securities Industry Still Has $20 Billion to Pay Bonuses

This is a big reason why investment banks shouldn’t have been part of the bailout infusions. They are now setting aside 20 billion dollars for the payment of bonuses.

Wall Street believes, often rightfully, oftentimes not, that its biggest assets are the ones who go down the elevator every evening. As a result, many firms are always apprehensive that, if unhappy, their biggest producers could leave any time to go to the first competitor willing to pay more.

These firms are fucked, whether it is their illiquid securities that do them in, or their departing producers that cause their downfall.

Good show, you people! You can’t even wait more than 2 weeks after receiving your bailout money before you announce the bonus plans. Do you even realize that many people are blaming you as a group for the current worldwide crisis?

In retrospect, the bailout should have probably been made after bonus season. The government could have avoided an unnecessary bonus war.

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