Saturday, October 25, 2008

Big Banks Still Paying Large Bonuses

Banks that are receiving government bailout money are still paying large employee bonuses. seems banks and bank employees have gotten the the best end of this deal, at the expense of the taxpayers. To me, bonuses are not guaranteed compensation, especially during this financial crisis. By not paying bonuses, banks can save significant expenses and improve their financial situation. For example, Citigroup has set aside $25.8 billion for bonuses in 2008.

I hope these banks reconsider and eliminate bonuses for 2008. To me, it seems like a bad public relations move to pay any bonuses during a year that required government bailouts.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

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