Wall Street awards itself billions in Christmas bonuses

Investment bank Goldman Sachs is leading the pack. The firm reported an increase in quarterly earnings of 93 percent and will distribute some $16.5 billion in bonuses to dozens of its bankers and traders. The top “rainmakers,” as they are called, will each take home as much as $20 to $25 million just in bonuses, “while traders who booked big profits will take home a chunk of those profits, up to $50 million apiece,” according to a December 13 article in the New York Times. The report cited the comment of one New York-based investment firm, “Anyone at the bonus line at Goldman Sachs died and went to bonus heaven. It doesn’t get any better than this.”

Another piece on the December 3 financial page of the Times suggested that bonuses are “expected to be a cash pile of more than $100 billion across the Street this year.” That estimate presumably includes companies of all sizes. Last year major investment banks and trading firms handed out $21.5 billion in year-end bonuses. Options Group, a New York executive search firm, predicted 2006 bonuses would rise 15 to 20 percent.

The staggering figure of $100 billion in total bonuses is more than twice the annual budget of the US Department of Housing and Urban Development and nearly twice the US Department of Education budget. Washington spends $20 billion annually on foreign aid to the entire world. The yearly budget of the City of New York, which employs 250,000 people, amounts to $50 billion.

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http://wsws.org/articles/2006/dec2006/wall-d19.shtml