And people wonder why bankers are hated. Real median household income is lower than it was in 1999. Wages are stagnant. Young people are stuck with a trillion dollars of student loan debt and part time jobs at TGI Fridays. Average Americans don’t have money left to consume, so retailers are being destroyed and closing thousands of stores.
Too Big To Trust Wall Street Mega-Banks have been handed billions of newly printed dollars on a daily basis by the their wholly owned central bank to gamble with no risk of loss. They can borrow at 0% from this same central bank and then deposit those funds back with the central bank to earn .25%. This generates billions in risk free profits.
These same banks can mark the toxic loans on their balance sheet at whatever they choose. This allows them to release billions of loan loss reserves every quarter, generating accounting entry profits. They have no interest in making loans to small businesses or little people. That’s old school banking. Gambling with derivatives knowing the Fed has their back is how it’s done today.
What a business model. These parasites on the ass of America add absolutely no value to society. NONE. They have destroyed our economic system and won’t be satisfied until it is a smoking ruin. For this they reward themselves with $26.7 billion of bonuses for a job well done. There aren’t enough lampposts for what needs to be done.
Wall Street bonuses rose 15% in 2013 to post-financial-crisis high
The average person working in the securities industry earned a cool $164,530 bonus last year — 15% more than a year before.
An aggregate $26.7 billion was paid out in 2013 bonuses to the industry’s 165,200 employees, the highest figure since the 2008 financial crisis, according to figures released Wednesday by New York State Comptroller Thomas P. DiNapoli.
To put that bonus-pool figure in perspective, it would be enough to more than double the pay of the more than 1 million full-time workers earning the federal minimum wage, which is currently $7.25 per hour, according to the Institute for Policy Studies.
The bonus increase on Wall Street is a result of firms’ engaging in deferred compensation, according to the comptroller’s report. Financial firms are now paying out a smaller share of bonuses immediately and are instead deferring a larger share into future years.
DiNapoli’s office noted that the securities industry “navigated through some rough patches last year” and yet was profitable. “Although profits were lower than the prior year, the industry still had a good year in 2013 despite costly legal settlements and higher interest rates,” said DiNapoli. “Wall Street continues to demonstrate resilience as it evolves in a changing regulatory environment.”
Major regulatory reforms since the financial crisis have changed the way the industry does business. Firms are now required to maintain larger reserves, and proprietary trading has been limited, while additional changes are aimed at reducing unnecessary risk and enhancing transparency, the report notes.
In fact, the industry has been profitably for five consecutive years since the financial crisis, which includes its three best years on record. That despite the challenges the industry has faced in light of lower revenues from the core businesses of trading and investment banking.
Total Wall Street profits for the broker-dealer operations of New York Stock Exchange member firms were $16.7 billion in 2013, the comptroller’s office said.
Other nuggets gleaned from the report:
• The average salary, including bonuses, paid to securities-industry employees in New York City in 2012 was 5.2 times the average pay in the rest of the private sector, which was about $69,200 as of 2012.
• The securities industry, considered one of the city’s major economic engines, accounts for 22% of all private-sector wages paid in New York, despite accounting for just 5% of the city’s private-sector jobs.
– Sital S. Patel
– Follow The Tell on Twitter @thetellblog
– Follow Sital @Sital