Despite shareholders in the securities industry losing $74 billion in equity this year, Wall Street will still be paying out record bonuses to their employees of around $38 billion for 2007. This according to a recent article from Bloomberg.
And those are just the bonuses paid to employees of Wall Street's five biggest securities firms - Goldman Sachs Group Inc., Morgan Stanley, Merrill Lynch & Co., Lehman Brothers Holdings Inc. and Bear Stearns Cos. (The $38 billion doesn't include the bonuses paid to hedge fund managers, mutual fund managers, money managers, etc. in the hundreds of other investment firms investors entrust with their money.)
Where does the bulk of this bonus money come from? The excessive fees charged to the investors who lost $74 billion in equity this year.
It's the Wall Street way. You win, they win bigger. You lose, they still win big.
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