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

(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.

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)

Compensation analysts say Wall Street bond traders and other Wall Street professionals may see bonus checks cut this year and maybe next year. (AP Photo/Richard Drew) (Associated Press)

Compensation analysts say Wall Street bond traders and other Wall Street professionals may see bonus checks cut.(AP Photo/Richard Drew) (Associated Press)

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Wall Street Bonuses In for a Fall

Extra pay could drop in half for some senior bond traders

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Wall Street Bonuses

Wall Street • Citigroup • subprime mortgages • Merrill Lynch • bonuses • Options Group • mortgage backed securities • Johnson Associates • compensation

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More Newser Stories

Profits Were Fake, Bonuses All Too Real

How risky schemes left bankers flush, banks broke

Banks to Pay SEC for Financial Crisis Fraud

They're near deal to settle allegations on mortgage-bond deals

Morgan Stanley Boss: Bankers Are Overpaid

But that's not going to change unless Washington steps in

Fed Plans to Oversee Bankers' Pay

Sweeping new rules will let central bank reject risky compensation plans

TARP-Funded Banks Kept Awarding Bonuses

Firms paid more than they made: Cuomo

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Wall Street Bonuses In for a Fall

Extra pay could drop in half for some senior bond traders

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OTHER STORIES ON OUR RADAR

Wall Street Bonuses

Wall Street • Citigroup • subprime mortgages • Merrill Lynch • bonuses • Options Group • mortgage backed securities • Johnson Associates • compensation

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Profits Were Fake, Bonuses All Too Real

How risky schemes left bankers flush, banks broke

Banks to Pay SEC for Financial Crisis Fraud

They're near deal to settle allegations on mortgage-bond deals

Morgan Stanley Boss: Bankers Are Overpaid

But that's not going to change unless Washington steps in

Fed Plans to Oversee Bankers' Pay

Sweeping new rules will let central bank reject risky compensation plans

TARP-Funded Banks Kept Awarding Bonuses

Firms paid more than they made: Cuomo

About Us

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Newser By Users

Community

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More News

What is Newser?