Wednesday, Jan 23, 2008
They lose $5.3million per HOUR and pay the same bonuses as last year?
Telegraph: Citigroup bonuses 'flat', even as job cuts loom
Citigroup will hand out more than $11bn (£5.6bn) in pay and bonuses to its investment bankers today, roughly the same as last year, despite a collapse in fortunes at America's largest bank.
About 100,000 staff around the world will share in the bonus pool, which makes up the bulk of the markets and banking division's $11.6bn of compensation and benefits. It comes as the industry braces itself for more job cuts, with rumours that Citi itself is planning to announce 10,000 redundancies in March - on top of the 21,400 axed in the past 12 months.
Citi insiders said the "overall bonus pool will be pretty flat but there will be a greater divergence … the stars will be kept and a strong message will be sent to those who haven't pulled their weight".
9 Comments
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1. alan said...
Denial, denial, denial.
I hope the Humvee dealers get a good commission!
2. maddison said...
There is always a lag. Jan 2009 will not be the same
3. stillthinking said...
The bonuses have been paid from capital, not profit. So now there is not so much capital. Seems reasonable.
I wonder if you total up all the bonuses paid out by all the banks since 1997 (a common starting point on charts), if it would equal the amount lost by investors. What an incredible correlation that would be!
4. bystander said...
Was this not the sort of figure the soveriegn wealth funds have 'invested' to Citigroup. So I imagine the conversation begging for a bail out went something like this:
CEO Citgroup: Please can you bail us out, again.
Sovereign Wealth fund: You are going to invest this money wisely and create stability and profit?
CEO Citigroup: Of course we are. The money will be used to back safe and secure lending practices which will see your investment treble in the next five years.
Sovereign Wealth fund: You are not going to use it to pay salaries and bonuses, then?
CEO Citigroup: Ofcourse not, buddy, WOULD I LIE TO YOU?????????????????????????
Money well spent.
The spiral continues.
5. lvmreader said...
The Good News and the Bad News about Synthetic CDOs
Evil Pension Fund Manager (EPFM but written EPMF): [Brooklyn Accent] Mr Schmo, about your pension I have some bad news and some good news.
Joe Schmo (JS): [Looking worried] Well what's the good news?
EPMF: Well it's like this. We had a little bit of a problem. We lost all your pension money. It's gone. That's it. And there's nothing anyone can do.
JS: Eh! WTF! And you say that's they good news. How the f**k is that good news?
EPMF: Well we still got our 10% cut. You know we have to pay bonuses and salaries and the like.
JS: [Ashen faced] Well what's the bad news?
EPMF: We need your house. Well actually it now belongs to (rustling papers) The Government of Kyrgyzstan
JS: [Now angry] But I paid off that house with 40 years of lowly paid productive labour. I have never even HEARD of Kyrgyzstan, let alone invested there.
EPMF: Well it's like this: There is a group of products called CDOs which involve slicing and dicing loans. We invested in Synthetic CDOs and it turns out that MBIA and AMBAC got downgraded and now we have no insurance. So the buyers of the slices of the CDO are now on the hook for 7 times the amount they invested. So that means you and your house..... Hey! Mr Schmo!, what you doing?!....AAAAAAAARGH
JS:[Sound of chainsaw starting] I'll show you some slicing..........................
6. Letthemfall said...
Salaries and bonuses never bore much relation to the value of those who get them. It's simply that anyone who works in an industry that handle enormous cash flows only has to get a share of the small proportion creamed off, which of course equals big money. All these bankers who've messed up with their derivatives, fund managers who've lost the punters money - will they give back their riches? Not bloody likely.
How to make money from investment? Go and work for an investment bank. (Next best thing - partner in an estate agent).
7. lvmreader said...
Or better still, become a whining golddigger
e.g.
http://women.timesonline.co.uk/tol/life_and_style/women/relationships/article3166507.ece
8. Looselips Sink Hips said...
The provost Marshal will seize control of Citibank/Citigroup and will take whatever measures that may be necessary in accordance with the exercise of his powers, beginning with the transfer to Ambassador Wanta’s Morgan Stanley securities account of his $4.5 trillion, and later delivery of the interest payable under the 60-day creditworthy Bank Guarantee arrangement. I m surprised that no one here is perpared to actually understand what has happened to citi bank, subprime hahahhahaha, under the cover of a war and a grey screen billions dissapeared,
9. lvmreader said...
@Looselips Sink Hips,
Que?