Open Thread

If you don’t pay big producers within the bank, you will lose them, simple as that. If someone brings in $1B of business, is he not entitled to a hefty bonus??? Tens of millions of dollars???

That’s why they say that in these businesses “your assets walk out the door every night.”

“jessi, bonuses are paid out of earnings and typically at the “division” level, not even corporate. yes, in the end they are a cost of the corporation.”

corporations that wouldn’t have existed if the gov’t didn’t bail them out with taxpayer dollars because they fucked up their own balance sheets!!

“Are tou really hanging onto that antiquated notion that the taxpayer is paying Wall Street bonuses?????”

Not for this year ( I don’t think) but the bonuses that were paid the year that banks got TARP funds were pretty distasteful. Any person that could have accepted those bonuses and then rallies against union people trying to hold onto whatever they can is pretty sick.

In cases where the govt is a major shareholder (e.g. RBS) I think they should have a big say in bonuses.

If the govt lent money to a bank that has now repaid it, then the bank can pay what it wants in bonuses. That is not taxpayer subsidized.

(I am not a banker so have no dog in this fight.)

But to the original point – allowing people and their families to keep more of the money they earn is not a cost to anyone.