Christmas Bonus money coming to market next week.
There are lots of Wall street guys who will be getting some pretty hefty Christmas bonuses next week. the odds are good that they will put some of it to work on wall street. They got the bonuses because of wall street and will put it to work on wall street.
Wall Street bonuses may top last year’s as earnings soar Securities industry is on track for second-highest level of profitability
msnbc.com news services updated 12/15/2010 4:11:30 PM ET
NEW YORK — Despite the weak U.S. economy, this year could be the second most profitable for New York City's securities industry, and the average bonus may top last year's because so many bankers and brokers have been laid off, the state comptroller said in a report on Wednesday.
"Wall Street earned $21.4 billion during the first three quarters of 2010," Comptroller Tom DiNapoli said.
"While much less than last year's record of $61.4 billion, which was fueled by federal assistance, the securities industry is on track in 2010 for the second-highest level of profitability on record," he said.
Last year Wall Street paid out $20.3 billion in bonuses, Di Napoli said, but 2,700 securities and commodities employees got pink slips from September 2009 through last September, according to employment data. The high-paying industry only employed 160,200 people in September, down from a peak of 200,300 in December 2000.
Wall Street's surprisingly swift recovery — which is a boon for the city's finances because of increased tax collections — was also highlighted in a report by City Comptroller John Liu issued on Wednesday.
"The astounding recovery of financial firm profitability in 2009 has been followed by a mixed year in 2010, yet total compensation in the industry is expected to be up modestly once year-end bonuses are paid," Liu said.
Separately, Goldman Sachs’ Chief Executive Officer Lloyd C. Blankfein and his top deputies will collect about $111.3 million in stock next month in a delayed payoff from last year and their record-setting 2007 bonuses, according to a Bloomberg News report.
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Blankfein will receive about $24.3 million in January, based on Tuesday’s share price, while President Gary D. Cohn will get about $24 million, according to company filings obtained by Bloomberg. The payouts are just a portion of the $67.9 million bonus awarded to Blankfein for 2007 and the $66.9 million paid to Cohn and reflect a 24 percent decline in the value of the bank’s stock.
Within a year after the bonuses were approved, Goldman Sachs took $10 billion from the U.S. Treasury, converted to a bank and was borrowing as much as $35.4 billion a day from Federal Reserve emergency programs, Bloomberg reported, adding that this year the firm paid $550 million to settle U.S. regulators’ fraud charges related to a mortgage-security the company sold in 2007.
Reuters contributed to this report.