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Wall Street Set to Award Record Pay: Report
WASHINGTON - US banks and securities firms could pay a record 140 billion dollars to its staff this year, a rebound in compensations that comes despite regulatory scrutiny of Wall Street pay culture, a report said Wednesday.
Wall Street sign and the front of the New York Stock Exchange. Financial firms have been boosted by a stronger stock market, thawing credit market, a resurgence in deal making and the continuing effects of various government aid programs, even though the economy remains sluggish and unemployment is near double digit levels.(AFP) Workers at 23 top investment banks, hedge funds, asset managers and stock and commodities exchanges can expect to earn even more than they did at the peak year of 2007, according to an analysis by the Wall Street Journal.
It studied securities filings for the first half of 2009 and revenue estimates through year-end.
Total compensation and benefits at publicly traded firms that the Journal analyzed were on track to increase 20 percent from last year's 117 billion dollars, and to top 2007's 130 billion dollar payout.
This year, employees at the companies will earn an estimated 143,400 dollars on average, up almost 2,000 dollars from 2007 levels, it said.
The report came as companies began declaring their third quarter earnings, with financial firms expected to perform well and revenue moving to levels seen before the financial crisis sparked off by a home mortgage meltdown.
JPMorgan Chase reported Wednesday its third quarter profit jumped to 3.6 billion dollars in a further sign of the rebounding fortunes of the banking sector.
The profit however was heavily skewed to investment banking and trading results, which offset weakness in the consumer sector, especially in credit cards.
The group, among the healthiest of the major US banks, said earnings were multiplied nearly by seven from 527 million dollars in the same period a year ago.
Financial firms have been boosted by a stronger stock market, thawing credit market, a resurgence in deal making and the continuing effects of various government aid programs, even though the economy remains sluggish and unemployment is near double digit levels.
The rebound also reflected growing confidence by some Wall Street firms that they can again pay top dollar for top talent, especially once they have repaid the taxpayer-funded capital infusions they received at the height of the crisis, the Journal said.
So far, regulators and lawmakers have focused on making sure pay practices discouraged excessive risk-taking.
The Journal's analysis included JP Morgan and other banking giants such as Bank of America and Citigroup, securities firms like Goldman Sachs and Morgan Stanley and asset managers such as BlackRock and Franklin Resources.
The total revenues of the firms studied were projected to hit 437 billion dollars, surpassing 2007's 345 billion dollars, according to the analysis.
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36 Comments so far
Show AllWe are owned. We are so owned. Serfs.
MichaelC
There may be some solace in the fact that in a little while, all that money won't be able to buy a hill of beans.
I'm glad I started buying gold nuggets a few years ago. Not enough to be wealthy but enough to keep me in beans and rice for a few years after the "Big Bucks Blowout"!!!
WRONG! Even as some of their stocks deteriorate, much of their wealth is invested in "too big to fail." So, while OUR assets are destroyed they are left with some wealth. What does that mean? Even though they have a seemingly diminished asset base, they come out as kings because they are left with most of the remaining assets, especially land ownership. They are wiping out the middle class wealth base in order to rule.
your pain is their gain and there is not a fucking thing you can do about it suckers--oh yeah you all can write your opinions about this and that as you get sucked down the drain in their uncontrolled and unregulated whirlpool--right down to the bottom of the septic tank right alongside the other turds that were afraid to act--even those who end up with the cash will be crying out "Let the rocks fall on me"--ah, too late!
OK Im reaching up out of the bowl right now, I got my hand on the flush lever, I've pulled it. Yipeee, Im circling around the bowl right now. Hey this is kind of fun, kind of like a water slide.
So far it really isn't all that bad... I wonder if the hole at the bottom of the bowl leads to another ride like this one? I really hope it does!
roflmao
Can there be a Class Action Suit to attache Bankster income?
"...growing confidence by some Wall Street firms that they can again pay top dollar for top talent"
What do they mean by "again"!?
Re Kane Jeeves October 14th, 2009 12:55 pm
If I understand your post correctly, you're suggesting that the economic meltdown was the result of incompetence.
Nothing could be farther from the truth.
"...you're suggesting that the economic meltdown was the result of incompetence. Nothing could be farther from the truth."
Correct Jethro. They bribed the politicians with campaign contributions, they knew they were too big to fail, so they could take reckless risks to make as much money as possible, then when the whole thing came crashing down they knew they would get their butts bailed out by none other than the US government.
Frankly that is pretty brilliant. I would have never thought something like could possibly have been done in broad daylight, for all to see, and think I could get away with it. I simply don't have the brains or the balls to do something like that.
Those guys are simply giant brains that are carried around on a pair of gargantuan gonads. They are super humans in those two departments, and deserve every dollar that they stole from the system!
Well, assuming it wasn't pre-planned, then yes it was incompetence. I 25% believe that. I 75% believe it was simply the Shock Doctrine applied to the US, which only came to fruition in 2007 after years of groundwork. (Ok, make that 10%/90%)
"Top talent." What a dreary lie.
Joe
really. talent doing what? making what? robbing us at the point of a pen.
This crap is happening on Obama's watch. Sadly, with Summers-- Anti-regulation, pro- derivatives-- on board and Goldman Sachs, his largest single campaign contributor, Obama is clearly wall Street's man.
If he took a more populist/main street tack he would gain the support of working people--alas,he has lost it!
Its not just HAPPENING on Obama's watch. Obama and the insiders he hired are enabling it.
To say it is HAPPENING implies that Obama may be incompetent or asleep at the wheel.
As a previous poster pointed out...there is no incompetence, just a well planned robbery of the US Treasury being expertly executed with full assistance of the insiders.
I just got a letter from Wells Fargo. If I interpret the legal mumbo jumbo right, they are raising interest rates on their credit cards 8.5 percent. W.F. got a bail out of 25 billion--that's in our tax money. Since then W.F. has been plagued with scandal. Way to go, Wells Fargo!
I just got my savings account statement from Wells Fargo and the current interest rate they are paying me is .10%, virtually zero.
Wells Fargo is cruising the college campuses during freshman orientation offering free student checking accounts with free debit cards...that just happen to be credit cards with a pre-approved $750.00 limit for soon to be college students. These are also used for student ID's. They sure try to snag them as quickly as possible eh?
With foreclosures out the wazzu and trillion-dollar deficits, these wretched "banksters" are "living large" and swimming deep in their lavish bonus pools, further exemplifing the abhorrent disconnect in our downtrodden, subservient society, on the brink.
And they called it "Change." Sigh
Serf's up!
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Thomas Jefferson,
Since Obama took office the financial pirates have been running hog wild.
Don't tell me he could not do a thing about it.
This is a far cry from the speech I heard him give in a small ballpark in Florida in the summer of '08.
He spoke like Robin Hood then.
Now he acts like the Black Prince.
Agence France-Presse sez: "So far, regulators and lawmakers have focused on making sure pay practices discouraged excessive risk-taking."
***
Yeah!, You go, "regulators"! Give ol' Bre'r Rabbit the heave-ho into the briar patch! That'll show 'im!
We're back, baby! Whoo hoo! Party like it's 1999!
The economy is fixed!
Health care has been totally reformed!
We're the most admired country in the world!
Jobs... er... any minute now!!!
But don't dwell on that tiny little inconsequential fact, because:
We. Are. F@#king. Back!
Note to Common Dreams: no reason to post any more pieces about the 'great recession' or 'tough times' or bankster uber-super-duper grand larceny. Because, if you haven't heard, WE ARE F#@KING BACK!!!!!!!!
Great News!
A clear vindication of Socialism in the marketplace!
Had they been left to their own devices, they would have been stangled to death by the Invisible Hand.
"The only means of strengthening one's intellect is to make up one's mind about nothing, to let the mind be a thoroughfare for all thoughts." - John Keats
"The total revenues of the firms studied were projected to hit 437 billion dollars"
Unfortunately, those are now equivelent to Canadian dollars, since we hit parity.
and oil is about to be traded in Yen as its base currency.
"The only means of strengthening one's intellect is to make up one's mind about nothing, to let the mind be a thoroughfare for all thoughts." - John Keats
Fix it, Obama.
Instead of escalating in Afganistan, A-bomba should be focusing his attention to where the real global terrorists exist. That would be Wall Street. I recomend sending the Marines in. Take no hostages. Render their leaders Paulson, Griether and Summers to a foreign contry for some torture until they tell where the money is. Upon disclosure of where the money is turn them over to the locals for a good old fashioned hanging such as Sadam received.
Could you please put that in the form of a motion? If so I will second it. mo All in favor say 'Aye.' This has all of the trappings of a bad movie, but in the movies somebody or other usually sees the 'light' and there is a happy ending. In this scenario there is no happy ending except for the guys wearing the black hats.
Hounddog4's scenario is a much better ending, punishment befitting the crime and America wins the battle over the villans. Pass the popcorn!
We should sharpen the guillotin's blade and celebrate Wall Street's good fortune the old fashioned way.
camus13
Obama help HaHaHaHa.
His largest donor was Wall Street.
Yesterday I read that he has quietly dismissed any change in the non payment of taxes by the big boys......reason they complained.
If I list his "I wills" that are now "I won'ts" I would be here all day.
After the Rev. Wright problem and his vote to cover the A of the telecoms I decided not to vote for him. Not that it does a me a lot of good. But I did read him.
I didn't vote for him, either -- for the same reasons you gave, plus his intent to escalate the war in Afghanistan.
We had options -- Ralph Nader and Cynthia McKinney!
As I recall, Obama received $18 million from Wall Street -- or, was that from the various health industries?
Here is an insightful article by Ken Silverstein:
http://www.harpers.org/archive/2009/10/hbc-90005911
“So far, Obama’s most cynical choice was to align himself with Robert Rubin and Wall Street in order to raise money for his presidential campaign. Second is his campaign pledge to escalate the occupation of Afghanistan to counter Republican claims that he and the Democrats were appeasers on “terrorism.” In third place is his decision to hand Max Baucus (the senator from Montana who moonlights as an insurance-company lobbyist) the task of “reforming” health care, thus guaranteeing that there would be no genuine reform.”
Obama and his handlers are convinced that in order to win again in 2012 he needs to keep the same choices so that money will keep flowing from financial sectors, healthcare industries, pharmaceuticals and defense industries. As Nader said, small money do not come with string attached but big money do. So Obama ends up being all talk but no action as far as the pursuit of common good is concerned. In American politics where money is the king, probably this is expected.
giving 14 trillion tothe banks shrinks the economy by increasing the wealth gap
stimulus packages that get money in regular peoples hands stimulates the economy
Well, at least the IRS is watching. The government needs some money and Wall Street types are the ones who love to avoid taxes on their ill gotten gains.
This from Bloomberg:
Oct. 14 (Bloomberg) -- More than 7,500 U.S. taxpayers voluntarily disclosed secret offshore accounts to the Internal Revenue Service as the agency expands its crackdown on overseas tax evasion, IRS Commissioner Doug Shulman said.
People who have come forward have provided information about accounts holding from $10,000 to $100 million since the IRS extended a Sept. 23 deadline for participating in the voluntary-disclosure program, Shulman said. The partial amnesty ends tomorrow and won’t be extended a second time, he said.
Americans with undeclared offshore accounts have been under growing pressure since Switzerland agreed Aug. 19 to hand over data to the U.S. on as many as 4,450 UBS AG accounts to settle a lawsuit in which the U.S. had sought as many as 52,000 accounts.
end of snippet.
I'm sure these folks belong to our patriotic one percenters who love war but hate taxes and have zero participation in the military beyond pentagon contractor stock.
...a well planned robbery...
but on a scale of UNBELIEVABLE PROPORTIONS.
Extremely helpful material to get a grasp of civilization's greatest swindle is:
Zeitgeist Addendum
http://video.google.com/videoplay?docid=895026537690187652
THE EMPIRE OF "THE CITY"
http://video.google.com/videoplay?docid=4675077383139148549
and
“Collateral Damage” by E. P Heidner, part I and II.
www.scribd.com/people/documents/2169400-ep-heidner
Call me an optimist, but I still believe that this Congress and this Administration will get derivatives regulated, get consumer protections in place, crack down on overseas tax havens, and roll back the Bush tax cuts. All progress.
Things I'd like to see them do that won't happen: Roll back the Reagan tax cuts, repeal Glass-Steagall, and implement a trade policy that brings jobs back to America.
Let's not make perfection the enemy of progress.