New vortex to excessive bonuses in the financial world: the ailing Bank of America presents its investment bankers for the past year just as much in extra payments as promised before the crisis.
New York – A profound crisis, losses in the billions – and the bankers turn me nothing, nothing around you in the usual business mode. What scolded like to dismiss as defamation, is in reality again and again occupied. A new example is the annual letter from the embattled Bank of America to its employees in the Investment Department. You could expect extra payments for the past year about the same level as 2007, The Wall Street Journal reported on Friday.
In the money again until the house is standing on its own feet, after the U.S. taxpayers had to bail out the bank with 45 billion U.S. dollars before the collapse. It was only less than a month, the Institute had no outstanding debts to the state.
Bank of America is one of the biggest losers in the Financial crisis. She had the takeover of investment bank Merrill Lynch credited as the chaos in the financial markets was greatest, while ignoring the latent risks in the form of billions in toxic securities. At the end of 2008 totaled 27.6 billion U.S. dollars of loss. The state had to jump.
As part of the general recovery in the financial sector has eased but the situation for mother and daughter. This recovery will be reflected in the bonuses, The Wall Street Journal. The bank itself did know about the payment was not yet finally decided.
Bonuses are a controversial issue since the crisis in the financial world. Despite heavy losses, especially the investment bankers were still huge extra payments. Especially come under criticism was the practice in government-backed banks, geradesteht where ultimately the taxpayers for their salaries.
Excessive bonuses are considered one of the triggers of the financial crisis, they stir up, according to critics, the risk-taking. Britain had imposed a special tax, therefore, also in France and Germany is a corresponding duty in conversation.
Investment bankers from Merrill Lynch had pocketed 2007, some 5.8 billion U.S. dollars in bonuses, and even for the crisis year of 2008, they still received 3.6 billion U.S. dollars. The Board of Directors, therefore, came under enormous public pressure to go in the end had to bank chief Kenneth Lewis.
For the year, which leads the incumbent head of retail division, Brian Moynihan, Bank of America. His stated goal is to burnish the battered image again.
The U.S. government had the financial world, a total of 700 billion U.S. dollars made available. Only a few weeks ago it had extended its alternative plan until well into the next year. Especially medium and small banks are still in distress. Taking institutions, government help, however, have suffered severe cutbacks in paying their executives. The big banks have therefore now repaid all the money received.