BofA Doles Out $4B in Bonuses

Cost-cutting to hit Merrill's top earners

(NEWSER) - Bank of America plans to lay off 2,000 of its highest paid employees in its investment banking, commercial banking, and non-US wealth management units, sources tell the Wall Street Journal . Those operations just happen to be the ones that expanded with BofA's acquisition of Merrill Lynch, which has been the bank's top profit center since the financial crisis. The move is part of CEO Brian Moynihan's aggressive plan to cut costs. More»

(NEWSER) - Citigroup will raise salaries for investment bankers and traders as much as 50% to offset a steep falloff in bonus pay and keep the company’s compensation package competitive, Bloomberg reports. Other employees, like those in the consumer banking section, will receive smaller raises. Citi, which took $45 billion in federal bailout funds, also plans to offer its employees stock options to keep them on. More»

Bank decided on bonuses earlier than claimed, he says

(NEWSER) - Andrew Cuomo is turning the screws a little tighter in his investigation of bonuses paid to Merrill Lynch executives. In a court filing today, the New York attorney general accused the bank of "misleading" Congress about when it decided to dole out $3.6 billion, the Wall Street Journal reports. He cited a letter written Nov. 24 in which the company said any decision on bonuses would be made at the end of the year. In fact, the decision had been made two weeks earlier, he said. More»

Some, unlike disgraced investment bankers and traders, even command bonuses

(NEWSER) - With investment bankers and trading desks disgraced by crippling losses, the everyday stockbroker is enjoying a renaissance as Wall Street firms look to stay relevant to customers and investors, the Wall Street Journal reports. The likely deal between Morgan Stanley and Citigroup that would create the world’s largest brokerage unit underscores the importance Wall Street is placing on brokers as instruments of economic recovery. More»

Bank of America hires new unit president, announces lay-offs

(NEWSER) - After last week’s dismal report card for its investment arm, Bank of America replaced that unit’s president and announced a slate of reforms to recharge the business. Gene Taylor abruptly retired and will be replaced by Brian Moynihan, the bank’s president of Global Wealth and Investment Management, and an architect of its FleetBoston merger, reports the Wall Street Journal. More»