Wednesday, November 11, 2009

Report: $30B in Bonuses Doled on Wall St.

Report: $30B in Bonuses Doled on Wall St.

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Just a year after receiving a record-setting amount of government aid to rescue their failing companies, three of Wall Street's giants will pay the government's generosity forward, in the form of nearly $30 billion worth of executive bonuses, according a report in Bloomberg.

Goldman Sachs, Morgan Stanley and JPMorgan Chase, which have all exited the government's Troubled Asset Relief Program, or TARP, are set to dole out $29.7 billion in bonus money.

According to Bloomberg, "The money, split among 119,000 employees, equals $250,400 each, almost five times the $50,303 median household income in the U.S. last year."

As one analyst tartly tells Bloomberg:

"Wall Street is beginning to resemble Clark Gable as Rhett Butler in the film 'Gone With the Wind': 'Quite frankly, my dear, I don’t give a damn.' It doesn’t seem as if even political threat, disastrous PR, envy, rising unemployment rates and home repossessions is enough to get any of these people to refuse the bonuses they have 'earned.'"

Click here to read the full report by Bloomberg.

In June, the government allowed 10 major banks, including Goldman, Morgan Stanley and JPMorgan, to remove themselves from its relief program and repay their shares of TARP money plus millions of dollars in fees.

When Goldman posted a $2.72 billion second-quarter profit, the bank released that it had repaid the government's $10 billion investment in TARP money.

Morgan Stanley, however, lost more than $1.2 billion in the second quarter, yet the bank still managed to pay back the $10 billion it had received from the government.

JPMorgan reported a net income of $2.72 billion during the second quarter and released that it had repaid in full the $25 billion in loans it received from TARP

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