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Mega-bonus returns as banks return to profit
12.10.09
Bankers' bonuses will be back under focus this week as Goldman Sachs, Citigroup, JP Morgan and Bank of America Merrill Lynch are all set to report a sharp recovery in third-quarter earnings.
Investment bank fees have recovered strongly from the lows they hit this time last year and even though there are fewer deals being done, income from selling bonds and underwriting share issues is booming.
Goldman Sachs is expected to pay as much as $22 million (£13.7 million) in bonuses to its 30,000 employees this year. Some 5,500 of them work in London. The bank is forecast to report third quarter profits of $3.5 billion on Thursday.
But JP Morgan and Bank of America which report on Wednesday and Friday are both likely to show rising bad loan provisions on their core banking business as the US economy staggers out of recession.
Bank of America is likely to show a strong performance from Merrill Lynch which it bought for $19 million at the height of the financial crisis.
Reader views (4)
Several great ironies here. Firstly Goldman does not lend money [mortgages etc,] but are making out like bandits. Secondly they do not owe the British or USA government an money .. zero. They are just way smarter so make money. Funny thing is why do they have to kow tow to the losers? Anyone can buy shares in Goldman? If their people make the money then surely they should, along with the shareholders [all employers are shareholders anyway!] share in the profits?
No I get it... they should work very hard and hand it over to feed the oxygen thieves and corrupt MP's? Sweet.. last one turn out the lights...
- James Macleod Ritchie, Oyster Bay Cove
I´d be well annoyed if I get a USD400 (GBP250) bonus working at GS.
- Tbear, Frankfurt
Not sure if Govt has any control over bonuses are anything else in the banking sector.
So stop pretending to have any control or regulation andget rid of the impotent regulator, the Financial Services Authority, and ensure that all its employees are shown the redundancy door and not a side entrance door to the Bank of England.
- Mike, London
Are these numbers out by miles? Goldmans to only pay 22 Mn in bonuses to all 30000 employees? I thought the BofA purchase of Merrill was about 50 Billion?
- Dom Duncan, Auckland, NZ
