Wall Street Bonuses In for a Fall

Extra pay could drop in half for some senior bond traders
By Peter Fearon,  Newser Staff
Posted Nov 7, 2007 3:50 AM CST
Merrill Lynch & Co. took a $7.9 billion writedown because of the summer's credit crisis, a bigger-than-expected amount that raised the specter of more trouble ahead from risky home loans%u2014and lower...   (Associated Press)
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(Newser) – Wall Street's multi-million-dollar bonuses are likely to take a hit for the first time in five years, with extra pay dropping in half for some senior sellers of mortgage-backed securities, according to the Wall Street Journal. Traders in stocks and commodities are expected to do better than those working with bonds and mortgages, reflecting the subprime crisis.

Overall, bonuses are expected to be cut as much as 15%, reports the New York Times. It's a dose of reality for Wall Streeters who are used to bonuses growing each year and an indication of how badly the industry has been rocked. For many bankers and traders, bonuses can be up to 10 times their base salaries. "A lot of people" are getting "slammed," said one analyst.