Bonuses at big banks have been slashed. They've been capped at as low as $125,000. Do you feel sorry for the bank executives?
Diane
2012/02/08 03:52:35
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5 votes
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19% | |||
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20 votes
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1 vote
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Because of Dodd-Frank, Wall Street bonuses at some of the big banks have been capped. Morgan Stanley capped its cash bonuses at $125,000. Bank of America set $150,000 limits on some cash bonuses.
"It's a bloodbath," one mid-level Goldman Sachs employee told CNBC about bonus day. "One girl was actually crying, I think," said another. After final quarter profits in 2011 fell by 58 percent from the same time last year, the firm shaved wages and bonuses down 21 percent.
http://jobs.aol.com/articles/2012/02/06/with-bonuses-slashed-...
The problem is that, because of Dodd-Frank, banks will no longer be allowed to conduct proprietary trading. Proprietary trading is this: Let's say you deposit $10,000 in a bank. That bank was once able to take that $10,000 and gamble it in the stock market. If they made a profit, the banks pocketed the money. If they took a loss, they still owed you what you deposited, but, if they didn't have the money because they gambled it away, you would have to be paid by the taxpayers if you wanted to withdraw your money.
Before Dodd-Frank, banks were able to leverage at 30 or 40 to one ratios. Now banks have to keep a lot more money on hand.
Of course, Republicans feel sorry for the banks and want to repeal Dodd-Frank. That's because Republicans are owned by the banks.
"It's a bloodbath," one mid-level Goldman Sachs employee told CNBC about bonus day. "One girl was actually crying, I think," said another. After final quarter profits in 2011 fell by 58 percent from the same time last year, the firm shaved wages and bonuses down 21 percent.
http://jobs.aol.com/articles/2012/02/06/with-bonuses-slashed-...
The problem is that, because of Dodd-Frank, banks will no longer be allowed to conduct proprietary trading. Proprietary trading is this: Let's say you deposit $10,000 in a bank. That bank was once able to take that $10,000 and gamble it in the stock market. If they made a profit, the banks pocketed the money. If they took a loss, they still owed you what you deposited, but, if they didn't have the money because they gambled it away, you would have to be paid by the taxpayers if you wanted to withdraw your money.
Before Dodd-Frank, banks were able to leverage at 30 or 40 to one ratios. Now banks have to keep a lot more money on hand.
Of course, Republicans feel sorry for the banks and want to repeal Dodd-Frank. That's because Republicans are owned by the banks.
Top Opinion
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luvguins 2012/02/08 04:14:48No, I don't feel sorry for the bank executives at all.
+9Poor dears. I am sure they saved their previous bonuses unless the dough went up their noses, or they spent too much on partying with escorts. They will just have to make do with $125-150 thousand now. Shows we need even more than Dodd-Frank.
Even though Dodd-Frank was watered down (that's the reason I pulled my money from BoA & Chase--not in a credit union) it still has good things that protect regular people like ME. No wonder they corrupt members of Congress (think Republicans) can't stand it & wanna go back to the days where bank executives could be paid multi-million dollar bonuses after killing our economy.
I think I'll just go back to sleep.
[Sorry to skew the poll results with a "false positive," Diane. :) ]
http://www.rollingstone.com/p...
From the link I posted.
It's not just a temporary belt-tightening, according to Sherman, who interviewed over two dozen financial players for the piece. While the slow recovery, the financial crisis in Europe, and the tsunami in Japan have all had an effect, there are bigger and longer-lasting shifts underfoot.
The controversial Dodd-Frank act, which is gradually coming into effect, touches every single aspect of the financial services industry. Most significantly, banks will no longer be able, for the most part, to conduct proprietary trading and hedge-fund investing. They have to keep a lot more money on hand too, and can no longer leverage at the 30- or 40-to-1 ratios that were commonplace at the peak of the credit boom.
and sorry for the rest of us for the agony we're going through as a result of their slash-and-burn tactics that left the nation in shambles.
http://www.politifact.com/tru...
http://www.politifact.com/tru...