Up to 10,000 staff at the New York office of the bankrupt investment bank Lehman Brothers will share a bonus pool set aside for them that is worth $2.5bn (£1.4bn), Barclays Bank, which is buying the business, confirmed last night.
The revelation sparked fury among the workers’ former colleagues, Lehman’s 5,000 staff based in London, who currently have no idea how long they will go on receiving even their basic salaries, let alone any bonus payments. It also prompted a renewed backlash over the compensation culture in global finance, with critics claiming that many bankers receive pay and rewards that bore no relation to the job they had done. Fury at $2.5bn bonus for Lehman’s New York staff
I still do not think, despite this incredible news, that Americans will adequately respond. It is very clear — everyone is reacting in a CYA response.
In addition to the $2.5bn cash pool, Barclays is also in negotiations with about 30 executives it considers to be Lehman’s best assets and plans to offer them contracts worth tens of millions of dollars.
A public lynching is what is called for, but we’re not there. Yet.
In other news, Europeans on left and right ridicule U.S. money meltdown.
And in more other news: ALMOST ARMAGEDDON MARKETS WERE 500 TRADES FROM A MELTDOWN
Good grief, it’s gotten so bad (overnight), that you just don’t even believe this crap anymore.
Had the Treasury and Fed not quickly stepped into the fray that morning with a quick $105 billion injection of liquidity, the Dow could have collapsed to the 8,300-level – a 22 percent decline! – while the clang of the opening bell was still echoing around the cavernous exchange floor.
According to traders, who spoke on the condition of anonymity, money market funds were inundated with $500 billion in sell orders prior to the opening. The total money-market capitalization was roughly $4 trillion that morning.
$500 billion in sell orders were saved by the Fed with $105 billion injection of more phony money. Unbelievable.
The rest of the article touts the fleet feet of the Fed as being our savior. Believe it if you wish, I said a while back we were toast already.