"Cutting employees before year-end in some cases eliminates hefty bonus payments"
Yeah, the guys that cut don't get a bonus -- but ALL THAT $$$ goes BACK INTO the POOL!!!!
See: Bailout Bill Paying For Wall Street Bonuses
Merry Xmas, suckers!
"Wall Street layoffs set to reach record level" by Associated Press | October 24, 2008
NEW YORK - Traders and investment bankers might have more to worry about than dwindling bonus pools this year as mass firings on Wall Street are set to hit a record.
Oh, they needn't worry about that! Why are there any "bonuses" going out, anyway?
The fallout from this year's global credit crisis has claimed jobs on all corners of Wall Street, from hedge fund managers to floor traders and beyond. More than 110,000 have lost their jobs so far this year, and some industry experts forecast it could come close to 200,000 before year-end.
Even the financial industry's biggest name isn't immune. Goldman Sachs Group Inc., the world's biggest investment bank, made plans yesterday to cut 3,200 positions from its staff of 32,000. Barclays Capital is in the midst of purging 3,000 jobs as part of its takeover of Lehman Brothers, and Bank of America Corp.'s acquisition of Merrill Lynch & Co. is sure to add thousands more.
So where is all that government loot going? Not into mortgage-saving and not into people, that's for sure!
Major US financial companies are getting rid of redundancies caused by this year's rapid-fire consolidation. They are also adapting to an environment of more regulation, less risk, and dwindling profits.
I'll believe when I see it!
Analysts believe this next wave of cutbacks will be the biggest the American financial industry has faced since massive bank failures in the 1930s. Up to 250,000 financial workers - perhaps more - could find themselves out of work by the second quarter of next year.
John Challenger, chief executive of Challenger, Gray & Christmas, said layoffs will surge in the next few months. In addition, cutting employees before year-end in some cases eliminates hefty bonus payments. --more--"
Why are they getting bonuses at all?
REWARDED for FAILURE?
