To be filed under “Are you shitting me?”:

“Workers at the largest financial institutions are on track to earn as much money this year as they did before the financial crisis began, because of the strong start of the year for bank profits.

Even as the industry’s compensation has been put in the spotlight for being so high at a time when many banks have received taxpayer help, six of the biggest banks set aside over $36 billion in the first quarter to pay their employees, according to a review of financial statements.”

Astonishing . . .

click for larger chart
26pay-graf01
via NYT

>

Source:
After Off Year, Wall Street Pay Is Bouncing Back
LOUISE STORY
NYT, April 25, 2009

http://www.nytimes.com/2009/04/26/business/26pay.html

Category: Bailouts, Corporate Management, Wages & Income

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

15 Responses to “Wall Street Pay Bounces Back”

  1. Kyle says:

    Well-earned compensation is not a bad thing, but it’s crazy that they all can make so much money while sticking the gov’t with the bill. Just 无语.

  2. dead hobo says:

    Uncle stupid says these are our best and brightest, and if we don’t pay them as much as they want, they won’t take our money any longer. Then we’ll really be screwed. On top of that, editorial writers and pundits will rip into Uncle Stupid’s bad judgment for not respecting them properly. They’ll say harsh things and really bore in.

  3. snapshot says:

    http://economistsview.typepad.com/economistsview/2009/04/paul-krugman-money-for-nothing.html
    Good reading by Krugman @ The Economist’s View

    “No, the reason financial firms are paying big again is simply because they can. They’re making money again (although not as much as they claim), and why not? After all, they can borrow cheaply, thanks to all those federal guarantees, and lend at much higher rates. So its eat, drink and be merry, for tomorrow you may be regulated.”

    “Or maybe not. There’s a palpable sense in the financial press that the storm has passed: stocks are up, the economy’s nose-dive may be leveling off, and the Obama administration will probably let the bankers off with nothing more than a few stern speeches. Rightly or wrongly, the bankers seem to believe that a return to business as usual is just around the corner.”

    “We can only hope that our leaders prove them wrong…..

  4. this: ““We can only hope that our leaders prove them wrong…..”

    is Klassic Krugman.. “only hope..our leaders”

    Sure, we can’t So anything, “only hope”

    he should take the Starter Course:

    HUMAN ACTION

    Chapter I. Acting Man [ read in .pdf] [See the Study Guide, Chap I]

    Purposeful Action and Animal Reaction (p. 11)
    The Prerequisites of Human Action (p. 13)
    Human Action as an Ultimate Given (p. 17)
    http://www.mises.org/resources/3250

    “our leaders”, y’all can figure that one out..

  5. So anything..spelling error

    Do anything..

  6. Mike in Nola says:

    Why is anyone surprised? Nothing will change unless this falls to the level that there will be no choice for the politicos but to play to populist sentiment and dismantle the big boys and put restrictions on those on the dole. I think forced castration might keep down the hormone levels and rein them in a bit.

  7. wally says:

    As long as the same people are there, they will do the same things.

    This issue is not going away, no matter what Geithner, Summers and Obama hope.

  8. pay bounces back, but with 25% less employees per firm (at least)…that sounds about right.

    the top dogs have to protect themselves, after all

  9. Onlooker from Troy says:

    Simon Johnson is surely right. The financial oligarchy controls this government. They surely have some kind of hubris to act like this on the heels of being propped up by the taxpayer. By all rights they should be bankrupt. UFB

  10. wally says:

    “Saving Wall Street” was hyped as the way to “save Main Street”. So now Wall Street pay is going up while the unemployment numbers start hitting new highs?

    I think disconnects like this are going to start posing some major political problems.

  11. Bruce N Tennessee says:

    Couple of things occured to me over the weekend…if in fact, we need 100,000 jobs per report just to stop the rise in the unemployment rate…not gonna happen…

    http://finance.yahoo.com/news/GM-to-cut-21000-US-factory-apf-15038678.html?sec=topStories&pos=2&asset=&ccode=

    GM to cut 21,000 US factory jobs, shed Pontiac

    Also, the flu news is interesting…what they are speculating about is a pandemic, like 1918..and thus far the flu virus has acted in this severe fashion only in Mexico…but before you become complacent..I have read that since the flu has seemed milder here in the US and other countries that maybe something else is at work in Mexico…well, don’t hold your breath that this is the case…if you think malls are empty now, just wait until you don’t trust your neighbor in the mall to give you a flu that might kill you…or in church, or at a baseball game…

    ….should be interesting, the next several weeks…

  12. Bruce N Tennessee says:

    http://zerohedge.blogspot.com

    “However, what is most telling isthat for every bond bull there are currently twenty bulls on the stock market.

    Sustained bull markets require vigorous recovery

    In any event, here’s the rub, as Hamlet said in his soliloquy: The consensus forecast from this group of market-watchers polled in Barron’s calls for real GDP growth of only 2% in the four quarters to mid-2010, which is practically flat in per capita terms. Yet, we went back to all the cycles back to 1949 and found that the onset of sustained equity bull markets requires a vigorous post-recession recovery.”

  13. leftback says:

    Barry, you have a way with words sometimes.
    The country needs overcompensated investment bankers like a fireman needs a bucket with a hole in it.

  14. Mannwich says:

    Business as usual on Wall Street, obviously. It’s quite obvious by now there will be no real (or any) reforms on Wall Street. Move along, everything is just fine.

  15. rktbrkr says:

    “Are you shitting me” is also appropriate for the cover story about a 747 trailed by fighters doing a photo-op over Manhattan on a Monday morning.

    Time for the sniff test, sniff sniff, smells like shit, looks like shit…maybe it really isn’t a chocolate bar