Salaries top bailed-out US banks agenda

Source: PressTV
http://www.presstv.ir/detail.aspx?id=117162&sectionid=3510203

In the post-bailout America, the biggest ailing banks magnanimously paid their employees up to 94 cents out of every dollar of their earnings to in 2009, a report said.

The New York Times unveiled in a report Tuesday that profits of the banks were going toward employee salaries, bonuses and benefits instead of their shareholders.

The report said the five largest banks on Wall Street — Citigroup, Goldman Sachs, Bank of America, Morgan Stanley and JPMorgan Chase — are giving their employees an unheard-of cut of the winnings.

Citigroup's employees received about $24.9 billion in 2009 as the bank posted a $1.6 billion loss at the same time.

"Citigroup is, in effect, paying its employees $1.45 for every dollar the company took in last year. On average, its workers stand to earn $94,000 each," the report said.

Goldman Sachs gave its staff about 45 cents out of every dollar or about $447,000 for each employee. The bank has 36,200 employees.

The banks "are handing out fat slices of their profits, leaving little left over for their shareholders," the report said.

Bank of America also spent 88 cents of every dollar to compensate its workers. At Morgan Stanley and JPMorgan Chase, that figures are 94 and 63 cents out of every dollar.

Citigroup, Bank of America and Morgan Stanley have all defend their decisions about compensation.

Some Analysts, the report said, believe the banks "are rewarding their employees at shareholders' expense."

"The investor in America sits at the bottom of the food chain," said John C. Bogle, the former chairman of the Vanguard Group. "The financial industry gets paid before their clients, and we get paid whether times are good or bad."

"It's not a fair shake," said John A. Hill, chairman of the trustees at Putnam Funds. "I think the shareholders who paid for building that franchise should be getting a bigger share of the franchise's profits."

The revenues of five largest banks on Wall Street stood at $147.4 billion before paying compensation and taxes last year.