Tuesday, November 20, 2007

Quick Takes – Wall Street

Q: So what do you get when you have lost $74 billion of your shareholder’s equity?

A: Record Bonuses of $38 Billion.

The large investment banks appear to be out of touch with the overall dissatisfaction with their performance. Once again as shareholders of Goldman Sachs Group Inc., Morgan Stanley, Merrill Lynch & Co., Lehman Brothers Holdings Inc. and Bear Stearns Cos get crunched, while the insiders walk away with record bonuses. Where is the alignment of share performance and financial compensation?

Wall Street Plans $38 Billion of Bonuses as Shareholders Lose

“They're paid very handsomely in good times because they're supposed to take a hit in bad times,'' Fitzpatrick said. ``Performance has dwindled this year, and I think they should feel that.''