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As Bank Profits Plunged In 2011, Banker Bonuses... Rose

Tyler Durden's picture





 

It will come as no surprise to many but everyone's favorite enemy #1, the US banker, decided to give himself a well-earned pay-rise in 2011 - according to data from Moody's Analytics (via Crain's). What is perhaps a little more surprising is the sheer gall of it given that the financial industry profits plunged over 70% from $27.6bn in 2010 to a mere $7.7bn in 2011. While the rise in salaries is not large, and the average man on the street actually saw a bigger rise, the critical point is that for two years in a row - from 2009 to 2010, and now from 2010 to 2011 - banking industry profits have dropped like a stone but the average salary of those oh-so-deserving 'Wall-Street'ers has risen.

 

Wall Street industry profits:

 

Wall Street average salary (and Main Street):

 

Source: Crain's New York Business

 


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Thu, 08/30/2012 - 17:13 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

Performance related pay...Bitchez!

Thu, 08/30/2012 - 17:19 | Link to Comment vast-dom
vast-dom's picture

yes but in 2012 bank profits SOARED so maybe those bonuses...uh....QE....uh....ZIRP....uh....PONZI......bonus....good....work.....nice.....ponzi....job...

Thu, 08/30/2012 - 17:24 | Link to Comment LMAOLORI
Thu, 08/30/2012 - 17:28 | Link to Comment Precious
Precious's picture

You didn't lose that.

Fri, 08/31/2012 - 01:37 | Link to Comment rocker
rocker's picture

Come on Tyler. It's called capitalism. The banks are the FED's priority. Where would we be without them.

Godman Shafts, JPMorgue, Wells Fago, Shitty Bank and Douche Bankster are saving the world.  LOL  

Thu, 08/30/2012 - 17:52 | Link to Comment ACP
ACP's picture

It's amazing how similar the banking sector and the public sector are. Both are run by unethical, spoiled, often criminal, overbloated, two-faced, double-talking, silver-tongue scumbags...

...bitchez!

Edit: Obama robber...hope & change, bitchez:

http://www.thesmokinggun.com/buster/barack-obama/obama-robber-756901

Thu, 08/30/2012 - 17:14 | Link to Comment TheSilverJournal
TheSilverJournal's picture

Why do banks even have profit and loss system? It's all fake as the losses are just covered by the government. They're just another arm of the government now.

Thu, 08/30/2012 - 17:17 | Link to Comment bidaskspread
bidaskspread's picture

Exactly, should be called GSE's.

Thu, 08/30/2012 - 17:15 | Link to Comment TheSilverJournal
TheSilverJournal's picture

Those bank CEO are basically extremely high paid government workers.

Thu, 08/30/2012 - 17:16 | Link to Comment Hype Alert
Hype Alert's picture

Your tax dollars at work.

Thu, 08/30/2012 - 17:20 | Link to Comment Dr. Engali
Dr. Engali's picture

Pffffttt. Peanuts a bunch if pikers. John Corzine blew up his firm and got 1.6 billion. Now that is pay for performance.

Thu, 08/30/2012 - 17:46 | Link to Comment LouisDega
LouisDega's picture

As long as Jamie supplys me with free food and drink at my local Chase, I'm all good. I must be fed or I stay at home.

Thu, 08/30/2012 - 19:08 | Link to Comment lotsoffun
lotsoffun's picture

i actually got 2 lollipops last friday downtown manhattan.  and my buddy was only waiting in the lobby and he got 2 also, and they didn't have us cuffed on the way out the door.  so - i think these chase guys are really pretty cool about it.  i would tell all my friends to bank at chase - free lollipops!  (sarc)

 

Thu, 08/30/2012 - 17:28 | Link to Comment ChacoFunFact
ChacoFunFact's picture

when you become secretary of the treasury you are not allowed to hold stocks, you must sell them.  but as part of the package, you don't pay taxes on the sale.  so hank paulson circumvented paying 50myn in taxes on his sale of his bank's stock.  we desperately need a taxation revamp.

Thu, 08/30/2012 - 17:23 | Link to Comment ChacoFunFact
ChacoFunFact's picture

the historic argument for charging interest on a loan is the opportunity cost associated with the loan.

 

but when these banks create the credit entry out of thin air, instantly via electronic journal entry and at will, where exactly is the opportunity cost?

Thu, 08/30/2012 - 17:23 | Link to Comment buzzsaw99
buzzsaw99's picture

since they don't have to count losses or mark to market they might as well pay themselves bonuses from loan loss reserves. shareholders are chumps.

Thu, 08/30/2012 - 17:28 | Link to Comment JR
JR's picture

Are you are on your way to Jackson Hole or are you there already?

 If you won’t be there, don’t expect to get anything from the cartel. Because the attendees are there to divide up the wealth of the nation – and that includes yours.

Scan the list of attendees from across the world, from the biggest banks, from the taker economists, to the insider media. Are you there? A saver? A retiree? A debt-saddled college student? A US engineer mugged by a multinational H-1B? An inventor with a patent?  An unemployed worker in manufacturing? A retail investor? A wannabe old-fashioned shoe-leather investigative journalist? An owner of a 401(k) with mandated investment options? An underwater homeowner? An underemployed American victimized by globalism?

Is there someone there representing your interests? Are you a Who’s Who of the global economic policy makers with a seat at the table?  If not, don’t expect to find something in your envelope. But you better watch your back.

 

Thu, 08/30/2012 - 17:28 | Link to Comment drivenZ
drivenZ's picture

well there's arguably fewer folks on wall street these days ( or atleast in 2009-2010) and you have to pay to keep talent for when the industry inevetibly booms again. Or you end up like Barclays...

http://dealbreaker.com/2012/08/deferring-significant-amounts-of-compensation-placing-caps-on-bonuses-not-working-out-so-well-for-barclays/  

 

 

Thu, 08/30/2012 - 18:06 | Link to Comment Dr. Engali
Dr. Engali's picture

So what you are saying is that only the best talent is left and they are getting even larger bonuses to blow up their firms. Only on Wallstreet.

Thu, 08/30/2012 - 23:55 | Link to Comment El Hosel
El Hosel's picture

"Talent".......Yeah, JPM needs some talent,  they have plenty of  Bernake bucks to pay for it. How low do you want your blow.

Thu, 08/30/2012 - 17:29 | Link to Comment Robslob
Robslob's picture

Because there is less of "them"?

Cannibalization by any other name...bankers do indeed eat their own!

Yea Team!

Thu, 08/30/2012 - 17:38 | Link to Comment ziggy59
ziggy59's picture

All for one,... nuff said

Thu, 08/30/2012 - 17:47 | Link to Comment larz
larz's picture

Id like to hear milliondollarbonus weigh in on this one

Thu, 08/30/2012 - 18:50 | Link to Comment Eternal Complainer
Eternal Complainer's picture

Isn't he already on his way to the Jackson's Hole preparing to make speech
or something like that?

Thu, 08/30/2012 - 17:47 | Link to Comment economicfreefall
economicfreefall's picture

As long as they can keep paying of authorities and get away with fraud...What did diamond get for setting up the LIBOR scandal? Resignation and $100 million bonus package? Doesn't really discourage the banksters from continuing...

Barclays said on Thursday that it had appointed Antony Jenkins, an insider, to be its new chief executive, as the British bank seeks to move on from the interest-rate manipulation scandal that claimed its former head and a potentially damaging new investigation into the deal in which it raised capital to avoid a government bailout.

Mr. Jenkins, who heads Barclays' retail and business banking unit, is stepping into the top job immediately, the bank said. Barclays had been seeking a new chief since early June, when Mr. Jenkins' predecessor, Robert E. Diamond Jr., resigned abruptly.

Mr. Diamond's resignation came less than a week after the bank agreed to pay $450 million to settle accusations by U.S. and British authorities that it had sought to manipulate for its own benefit the London interbank overnight rate, an interest rate that serves as a benchmark for hundreds of billions of dollars of contracts and derivatives. https://miningstockvaluator.com/news.php?id=37

Thu, 08/30/2012 - 17:51 | Link to Comment batterycharged
batterycharged's picture

I have a question, when they calculate the average pay for "the man on the street" do they include billionaires?

Also, do they include a pay of $0 for the unemployed? I mean higher unemployment would raise average wages if not.

Thu, 08/30/2012 - 17:52 | Link to Comment Heroic Couplet
Heroic Couplet's picture

The more bankers, hedge fund managers and day traders destitute, broke, unemployed, and on food stamps, the better off the world will be.

Thu, 08/30/2012 - 17:53 | Link to Comment yogibear
yogibear's picture

Pull da reserves out and make them disappear into overseas accounts. Then hand the bankrupt bank over and ask for a bailout or FDIC.

Plenty of money or fraud left in them banks. The banksters can work the numbers. Afterwards everything will be hushed and the bankster is sitting sipping cool ones on an island in south seas.

Thu, 08/30/2012 - 18:15 | Link to Comment LMAOLORI
LMAOLORI's picture

 

 

Sentinel, MF Global are proof that they can steal your money

RED ALERT: IT'S OPEN SEASON ON ALL CUSTOMER FUNDS

and if you are counting on the FDIC well

 

Doubts Remain Over Banking Industry “Recovery” – FDIC Quarterly Banking Profile

snip

"The FDIC Deposit Insurance Fund (DIF) balance increased during the quarter to $22.7 billion, up $7.4 billion from the previous quarter.  The DIF fund, which protects banking depositors from losses when banks fail, covers insured deposits of $7.1 trillion.  This is equivalent to trying to protect yourself with an umbrella in the middle of a Category 3 hurricane.  The collapse of one of the “too big to fail” banks would immediately require the FDIC to seek financial assistance from the U.S. Treasury.  During the height of the financial crisis, the FDIC was granted a line of credit with the U.S. Treasury for up to $500 billion."

http://problembanklist.com/doubts-remain-over-banking-industry-recovery-fdic-quarterly-banking-profile-0562/

Thu, 08/30/2012 - 21:58 | Link to Comment Scalded Frog
Scalded Frog's picture

What I find interesting is that in the 18 months from 1/11 to 6/12, the FDIC has taken over 124 of the banks that would have been considered "problem" institutions which tells me only 28 of those institutions have improved.  

Thu, 08/30/2012 - 18:12 | Link to Comment ArrestBobRubin
ArrestBobRubin's picture

The triumph of parasitism. It's time to take out the trash.

Thu, 08/30/2012 - 18:16 | Link to Comment Sofa King
Sofa King's picture

I think a bigger story is the obscene profits in 2008 and 2009. While average citizens were being torn to pieces, these cocksuckers were begging for bailouts and making record profits at the same time.

Thu, 08/30/2012 - 18:23 | Link to Comment Quinvarius
Quinvarius's picture

How did Jamie Dimon lose 7 billion, the same as the reported profit of the entire industry, and you can't even see it on the balance sheet?  LOL.  Enron accounting my good man!

Thu, 08/30/2012 - 23:23 | Link to Comment El Hosel
El Hosel's picture

JPM can lose its entire market cap in a few days if the market moves the right way at the wrong time... That will never  show up either, when it happens. The shit storm that arrives with that day will put it on the back burner.

Thu, 08/30/2012 - 18:30 | Link to Comment FieldingMellish
FieldingMellish's picture

Bollinger is expensive. You have to spend big money to do God's work... like rigging LIBOR.

Thu, 08/30/2012 - 18:30 | Link to Comment toady
toady's picture

How do you expect to attract and retain the best and brightest without proper compensation?

Thu, 08/30/2012 - 19:02 | Link to Comment takinthehighway
takinthehighway's picture

Good work if you can get it.

Thu, 08/30/2012 - 21:07 | Link to Comment CrawdadMan
CrawdadMan's picture

And why do you guys complain. Many of us in this site that work in Wall Street get our bonus bump too. 

Hypocrites!

Fri, 08/31/2012 - 02:01 | Link to Comment q99x2
q99x2's picture

Not for long. Next year if you are still there you just get the bump and no bonus. M'fer.

Fri, 08/31/2012 - 03:21 | Link to Comment JHole2012
JHole2012's picture

Wow this one is going to stirr up the Occupy movement hive very quickly.

 

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http://itunes.apple.com/gb/app/bankers-vs.-humans/id514372526?mt=8

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