Banks resume multi-million dollar bonuses

Bonuses paid to staff working in banks bailed out by government funds during the crisis provokes public outcry in the US

NEW YORK - Bonuses paid to Wall Street bankers have continued to be paid by banks that have suffered record losses during the financial crisis. Details of bonuses paid to staff working at Citi and Merrill Lynch, have outraged the public and government officials - New York's attorney general Andrew Cuomo in particular.

Citi, which made a loss of $27.7 billion last year, set aside $5.3 billion for staff bonuses, and Merrill Lynch, which was acquired by Bank of America in a rescue takeover, had a $3.6 billion bonus pool, shows the attorney general report.

Goldman Sachs and JP Morgan, which have benefited from the crisis, paid out the highest number of million-dollar bonuses. Both banks received billions of dollars from the US Government's Troubled Asset Relief Programme (Tarp) but this has since been repaid in full.

Cuomo said: "There is no clear rhyme or reason to the way banks compensate and reward their employees. Compensation for bank employees has become unmoored from the banks' financial performance."

He said pay had not been tied to performance in recent years, contrary to the banks' claims.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Financial crime and compliance50 2024

The detailed analysis for the Financial crime and compliance50 considers firms’ technological advances and strategic direction to provide a complete view of how market leaders are driving transformation in this sector

Investment banks: the future of risk control

This survey report explores the current state of risk controls in investment banks, the challenges of effective engagement across the three lines of defence, and the opportunity to develop a more dynamic approach to first-line risk control

Op risk outlook 2022: the legal perspective

Christoph Kurth, partner of the global financial institutions leadership team at Baker McKenzie, discusses the key themes emerging from’s Top 10 op risks 2022 survey and how financial firms can better manage and mitigate the impact of…

Emerging trends in op risk

Karen Man, partner and member of the global financial institutions leadership team at Baker McKenzie, discusses emerging op risks in the wake of the Covid‑19 pandemic, a rise in cyber attacks, concerns around conduct and culture, and the complexities of…

Moving targets: the new rules of conduct risk

How are capital markets firms adapting their approaches to monitoring and managing conduct risk following the Covid‑19 pandemic? In a webinar in association with NICE Actimize, the panel discusses changing regulatory requirements, the essentials…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here