From the Investment Fraud Blawg
On April 26, The New York Times reported that in 2009, “workers at the largest financial institutions are on track to earn as much money this year as they did before the financial crisis began.” (See article here). In fact, the article reports that six of the largest banks have “set aside over $36 billion in the first quarter to pay their employees.” At Goldman Sachs, the average compensation per employee could equal as much as $569,220. At J.P. Morgan Chase, the average employee in the company’s trading and investment banking unit is on pace to earn $509,524. Yes, the average compensation would exceed one-half of a million dollars.
In 2008, the stock market experienced losses of $30.1 trillion in market value. So far this year, the S&P 500 has declined by approximately 8% more. Meanwhile, the federal government has committed $12.1 trillion to financial bailout programs, and specifically, $10 billion and $25 billion, respectively, to Goldman Sachs and J.P. Morgan.
This begs the question, why are taxpayers footing the bill for the failure of the financial markets and continuing to lose money in the process while the compensation of the very people who contributed to the need for a bailout is returning to record high levels?