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So Much For The Whole Stock Bonus Theater: Citigroup Employees Can Sell Their Bonus Shares In The Open Market... In APRIL
More smoke and mirrors for the peasantry, courtesy of Wall Street, this time coming from Citigroup. Remember all that hoopla how banks are making payments in stock almost entirely, and how no Citigroup employee would get more than $100,000 in cash? Well, turns out the stock portion of compensation is just as liquid: it has been revealed that Citigroup employees can sell stock received as part of their bonuses as early as April. Hopefully by then the CNBC watching sheep will have forgotten all about Wall Street's record bonuses year and everyone can get on with their lives.
Dow Jones reports:
One source with knowledge of the situation said bankers would be able to sell the shares on the open market providing shareholders approve the scheme at Citigroup's annual meeting in April.
A source close to Citigroup confirmed that while the cash component of individual bonuses had been capped at $100,000, a large proportion of the remainder of individual awards will be made up of common stock units, which bankers expect to be able to sell following the AGM.
Citigroup declined to comment.
The revelation follows news, first reported by Financial News yesterday, that bankers at Bank of America Merrill Lynch (BAC) will be granted a substantial proportion of the stock component of their bonuses in shares that are due to vest in the short-term - in many cases as early as August.
At this point does anyone not feel like they are taking crazy pills? On one hand we have a Treasury Secretary blatantly refusing to answer any and all questions that disclose that he only worked on behalf of Goldman, and is also saying that he never had a formal recusal, just some flighty verbal agreement with his staff, and on the other we have a banking system that is now generously handing out blue bills left and right to any willing idiot who believes that anything at all has changed on Wall Street, besides the fact that 2009 was the most profitable bonus year for Wall Street's employees, and with this disclosure it appears that all the posturing about bonuses being paid out in stock was total bullshit. Surely this deserves some more histrionics from the president who will read angrily from the teleprompter how Citigroup employees need to hold their bonuses in stock for at least one more day... or else.
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The Treasury will probably hold our 34% for.......ever.
here is the free version of the Bloomberg clip from earlier today where Shiller discusses the prospects for a Double Dip
http://media.bloomberg.com/bb/avfile/News/Surveillance/v701s3ciiGZc.mp3
So we just load up on puts a little further out then the employee lock-ups.
Thanks for the heads up
:^)
One can only hope C will be a penny come April
Yea that would be poetic justice
Here's another kicker...the price where Citi employees can sell in April is already locked in! They have no markey risk.
Well, knock me over with a freakin' feather.
LOL, sort of like security theater at the airport!
3-month restrictive stock = long-term incentive???
All liquidity courtesy of the US Taxpayer.
Citigroup employees can sell stock received as part of their bonuses as early as April.......................and they will.
Information directly from friends of mine
employed at Citi who were informed a week or so
ago of their compensation, unless they did not understand what they were told, I would recheck your
facts including that 100,000 cash number. Even if they could sell stock in the
open market in April why would they sell at the lows? Because
they believe the company is worth zero as an ongoing enterprise plus it's asset liquidation value and the stock price is going to zero?
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