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Big bonuses at imploding banks

Big bonuses at imploding banks
The banks are imploding but that hasn't stopped the bankers raking in massive bonuses. Just what they're being rewarded for is anyone's guess.

The New York Times reports that six of the biggest banks set aside over $36 billion in the first quarter to pay their employees. This is significant because their workforces have shrunk significantly over the last 18 months which means the ones that are left are taking home more.

The Observer reports that 70% of financial services workers got a bonus in 2008 despite the unfolding of the worst crisis for 80 years with 16% saying their bonuses are bigger than last year. That includes UBS which despite gettiong a Swiss government bailout is paying its "star" 15-20% more.

Until the banks are sorted out, the financial crisis will continue. And the latest batch of bonuses suggests the banks remain as dysfunctional as ever.



Posted by: leon    Source