Tuesday, May 5, 2009

MORE bonuses for bankers?

This article is a few days old, but still brought about a "what the *&^?" moment.

More bonuses for Citigroup's bankers? Yes
Posted Apr 29 2009, 06:01 AM by Douglas McIntyre

Citigroup (C) has gone to the Treasury to beg for bonuses for some of
its most important traders, people who make the banks extraordinary
amounts of money. The Treasury’s reaction will probably be that it wants to stay
out of a fight with Congress and avoid negative public opinion and will turn the
request down....


...Wall Street’s primary argument for keeping a high level of compensation
for its best investment bankers and traders is that if they leave, overall
losses at banks could get worse....


...The government is going to have to come to grips with the fact that
banks have to pay the best bankers even if the idea is unpopular. There is
nothing new in this argument, but it is extremely urgent that it be
resolved.



I can see the reasoning here, but can also clearly see why this is NOT a popular idea with public opinioin. It reminds me of a comedian I saw once who did a routine about the poor getting charged for being broke and the rich getting paid for being rich. Of course that was a comedy show, but still...it's easy to see how the banks can fall under close scrutiny when having to make unpopular requests from government organizations.

I truly hope that if these "money makers" are going to get bonuses, they can stimulate the market enough to help bring the banks out of the hole and back on their feet. It's important that the money trickles down from the top to the bottom quickly, because--as we all know--that's where the REAL engine lies that drives our economy.

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