The mad, mad world of Wall Street bonuses

So whatelse is new I'm not surprised at what's happening in corporate America especially with the blantant deciet on the average American with oil "so called crisis" the money that's being made on lies and deceptions is at a all time high.there is so much greed selfishness today that it's scary. make no mistake these things are destined to happen, but the perpetrators of these iniguities will one day have to give account to his or her actions.

Bonuses should only be given as dividends on stock if they want the bonuses they should own the stock they could also add company owned stock.
This would not only benefit the stock holders but it is always good when the company starts buying back stock.

Compensation to traders at this level is simply a function of competition for top traders. The firms paying the large bonuses are not trying to reduce profits, but rather protect the future profits by offering comparable compensation to their employees as the employees would earn at other firms.

It is like the HUGE compensation in professional Baseball, or Basketball. It is not that the talent is worth the pay for their performance, but that the talent is worth the pay to avoid the talent performing for the competition.

These are interesting comments and responses although somewhat predictable in that most folks think this publicity on the part of these highly placed and well known "investment" firms is a show of greed or big money gone wild .
But consider this, in today's American World of an economy driven mainly by hypnotic mass media advertising where a McDonald's hamburger looks (on the tv screen) like something your grandmother used to make, and we believe that and then go to get one,but gee it doesn't quite measure up but "oh well" we eat it anyway and don't say anything about it to McDonald's home office what do we expect? We deserve to be deceived because, among other reasons, we EXPECT to be deceived by our System. Has any one considered what kind of advertising value these large Wall Street Firms are getting by reporting such massive dollar payouts ?? Its kind of like telling compulsive sports betting addicts that the odds picker drives a $ 100,000 Mercedes, these outfits are appealing to the greedy and foolish because thats how they really make their money.
Warren Buffet said it best " Wall street is the only place where the investor pulls up to the door in a limo to get investment advice from someone who takes the subway to work" These Wall Street outfits are just a part of the "smoke and mirrors" system we have going thats currently selling out our economy to "third world" countries like China, but the other shoe is about to drop.. good luck Hank Paulsen .

Hats off to Sandy ( post # 16). Well spoken!

please put the money to good use and help the people that are loosing everything homeless and the poor

spend some you earned it but please stop and help the poor

I can't believe I'm doing this; it's like calling into an AM radio talk show. However, as the owner of a small business in Wheeling, WV.( that is a state and not a part of VA.) who has done pretty well this year and has distributed a portion to his employees, I say BRAVO for the bonuses. Matt is correct; we should shop for less costly products, Ed Lackovick is in a rage and frankly I disagree with a majority of you who feel no one should make as much money as they possibly can. These are smart people that made their companies a barrel and, probably a bunch for their clients. They deserve to be paid for their acumen. Jealousy is like cancer and I am hearing that in this forum.

IM VERY HAPPY FOR ALL OF YOU HARD WOKING PEOPLE BUT CAN ANY ONE OF YOU SMART PEOPLE CAN HELP TONY P A HARD WOKING PERSON BUT NOT ABLE TO OPENING UP AN STORE AND BUY A HOUSE FOR MY WIFE AND CHILDREN AND ME PLEASE .THANK YOU. MR TONY P

The irony of this is that there is no shortage of gas, and prices have nothing to do with supply and demand. The "traders" have been paid so well because of their ability to manipulate prices and further rape the American public for their own benefit. Rather than a bonus they should go to jail!

I work over 80 hours a week at two jobs and still have not paid my December mortgage. My only child can't go back in January to the college where she makes Dean's list because there I don't have the money for the fees and there is not enough aid for education. Vacation??? I cannot remember my last day off, including last Christmas where I put food in the oven, went to work, came home to eat and then went back to work. I feel so detached and yet I live within a mile of great wealth. These 20 something traders are worth millions upon millions a year??

Why is there so much complaining? No one forces GS to pay that much. GS is doing what it takes to keep the employees that help all of us. And because of them, we will work fewer hours, learn more, have more leisure time, travel to more distant places, and have more of a chance to follow our life's ambition. Someone stated "they make so much money and they are so cheap," as if that's bad. I agree that they do not consume as much they could. They are not celebrities trying to show off, so their consumption is probably like most peoples'.

I believe our society (USA) is now one of utter greed and deception. Where is the "fair and equitable" division of our common wealth? The "Land of the free and home of the Brave" What could one do with a gazillion dollars and why should one have that much and the control it brings? Our land should be for all, not for the few who control the majority. We took this land (by force) from the Indians, who rightfully owned it. Why should there be Land Barons on stolen land in the first place? Look, Prices are out of control just look at home prices the last 6 years, stocks are bid up the gazzoo all without much merit, and our printing presses keep on pumping out dollar bills without a real backbone... all this is just a great farce. Long ago we started out on the right track (in days when our constitution was written) but by the time the industrial revolution rolled around things were getting out of control as individuals profited on the common man such as the the Carnagies, Rockefellers, etc. Today, things are totally out of control, it's all about the mega-rich, the famous rich, and rich. An open market economy? Sounds fair, however they're still in control and the remaining 99% of us out here are just pawns. Hey, shouldn't medical care be mandated for all in our country? Doctors, Nurses, etc. should be made accountable to provide service for the public good, without undo compensation. Many of our citizens are not even fortunate enough to be self-sufficient to afford healthcare today, what a crying shame. Why should people go hungry? Not have a roof over their head?, etc., etc. I know food stores/restaurants which throw out all their day old food (which is still fine by health standards) rather than donate it to the hungry. Speculative Owners Landlords who hold properties off the market as real estate mania market prices soared... solely for profit and then if they ever rent it out they squeezed their hard working tenant to death... all for the sake of the almighty dollar. Why should other countries follow our lead today? We are not a good example anymore. However we're still far better than most countries due to our forefathers who built this land, but we're losing ground fast because we're not adding real-value to society as a whole as we should. Real Jobs not outsourcing them and relinquishing control. What about these Athletes and Stars Commanding Millions and Millions and the culprit behind of all this is Greedy Wall-Street and the B.S. lies and deception behind it.

Here's a call for The Common Man to organize a Revolution! (There's no TRUE Democratic representation in Washington... only special interests) We MUST Correct these Injustices once and for all at the core.

I think it's time that any respectable investor abandon every one of these brokerage houses and look to places like Motley Fool or other sources of investment advice that actually have our interests at heart.

I marvel daily at the amount of churning that is going on as these greedy "advisors" (???) tell us we should buy and sell...but also wonder if their real motive is to help us make money or to simply pad their incomes because they get a cut of whatever it is we do.

It's time to leave them high and dry and see how they feel when they actually have to try to make an honest living on their own. I expect most of them would fail miserably if they really had to prove their worth!

I abandoned them long ago, and from what I've read and experienced, have done much better on my own.

It's time we all simply stop this nonsense and put our collective worlds back in perspective!

In my own personal small way I know how Citigroup's Smith Barney group, in part, achieved outsized bonues. My IRA statement reflected a significant drop in interest earned on their Bank Deposit Program from 4.8 to 1.6% September period. Coincidentally, next day WSJ article appeared concluding investment firms adjusted interest rates down on certain investment accounts to enhance their earnings. Also said many small investers don't monitor their accounts. I was not notifed of the change by Smith Barney, I called my broker, got his boss, he said my broker or his assitant will call me the next day to explain. Never happened.Needless to say I am closing my account, significant $,and moving to another firm in a higher paying fund. Moral of story is check you statements those sneaky jerks will steal money from their own Mothers in order to fund their New York style life styles.