Chillin' out till it needs to be funded
BofA sells its own brand of bad assets shares of the sam e vintage and class as owned by the United States government are being packaged as sweat equity for those earning more than $100,000 in bonuses. Cash payout has been capped at $150,000 for bonuses > $1 million and pay cuts of 330% included for the Fixed Income team ( updates at 15:00 ET)
The deal is pretty straightforward but if 75% of your bonus was in BofA shares trading at $7.35 I would be worried about the supply coming into the market as these are immediately vested, apparently the WSJ does not elaborate how it discourages the Treasury from holding on to too many of its prestigious bank holdings which have otherwise churned out a profit esp with the Five part US treasury sale.
Morgan Stanley news on capping of bonueses was just about confirmed int he results week and it seems they are following Goldman Sachs only so far as comp of the Fixed Income team is concerned
JP Morgan also confirms that the bank jhas cut comp for its I-bankers and the cards teams are getting a raise increasing the total comp pool for the year from 2010 (3%)
WSj wonders if people might consider the CS deal same as the BankAm deal. Of course!
BTW, don’t try defered bonuses on your junior staff. They don’t mind going to court and they don’t have a problem finding another job while in court!!