Source:
CBS NewsSeveral Bailed Out Banks' Bonuses Topped Their Net Income in 2008, According To N.Y. AG's Report(CBS) Several financial giants that received federal bailout money in the last year paid out bonuses to employees in 2008 that greatly exceeded the amount of profit generated by the banks, according to a study on executive compensation released by New York Attorney General Andrew Cuomo Thursday.
Despite claims by bank executives that bonuses are tied to the company's performance, the report states that "there is no clear rhyme or reason to how the banks compensate or reward their employees."
According to the report:
# Goldman Sachs, which earned $2.3 billion last year and later received $10 billion in TARP funding, paid out $4.8 billion in bonuses in 2008 - more than double their net income.
# Morgan Stanley, which earned $1.7 billion last year and received $10 billion in bailout funds, handed out $4.475 billion in bonuses, nearly three times their net income.
# JPMorgan Chase, which earned $5.6 billion in 2008 and later received $25 billion from the government, paid out $8.69 billion in bonus money.
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http://www.cbsnews.com/stories/2009/07/30/business/main5197668.shtml?tag=breakingnews