Cited: Associated Press

New York State Comptroller Thomas DiNapoli announced in February that Wall Street bonuses surged up 17% to $20.3 billion and stated that the bonuses were “bitter pill” after taxpayers bailed out Wall Street after its meltdown.

Total compensation at the largest securities firms grew beyond that figure and profits could surpass what he calls an unprecedented $55 billion last year, DiNapoli said. That’s nearly three times Wall Street’s record increase, a rate of growth that is boosted in part by the record losses in 2008 of nearly $43 billion, the Democrat said.

“Wall Street is vital to New York’s economy, and the dollars generated by the industry help the state’s bottom line,” said DiNapoli. “But for most Americans, these huge bonuses are a bitter pill and hard to comprehend. … Taxpayers bailed them out, and now they’re back making money while many New York families are still struggling to make ends meet.”

DiNapoli supports reforms that require Wall Street bonuses to be tied to long-term profitability, to force more stability in the volatile markets and “make sure the securities industry thrives without driving the rest of us out on a fragile economic limb.”

DiNapoli reviews tax collections each year and bases his annual projection of Wall Street bonuses on income and other taxes paid in New York City.

DiNapoli notes the bonuses help state revenues tremendously as it faces an $8.2 billion deficit, but they are a “bitter pill” to most taxpayers nationwide. The bonus estimate doesn’t include compensation that Wall Streeters chose to take in stock options and other kinds of deferred payment.

For those who would like to use their bonus for good . . . There are many schools in need of gymnasium equipment, why not use that bonus to get them bleacher enclosures? There is a company that is recognized for manufacturing superior quality wall padding, wall graphics, bleacher enclosures, and much more. You could help out a local school and its athletes by getting them custom windscreens or wall padding and make yourself feel good.

He said the bonus pool is a third less than the amount paid out two years ago when Wall Street had its previously most profitable year.

The estimate does not include stock options that have not yet been realized or other forms of deferred compensation. This year’s estimated bonus pool is a third less than the amount paid two years ago, the previous most profitable year.

For example, Morgan Stanley CEO James Gorman could receive a stock bonus currently valued at $8.1 million for 2009 if he meets certain performance targets, the bank said in January. Gorman is getting deferred stock worth $5.4 million but no cash bonus for 2009, Morgan Stanley said in a filing. Gorman can’t cash in the stock for three years.

Banks had been expected to hand out near-record compensation for last year’s performance. Several banks earned huge profits in 2009, aided by billions in government bailout funds and a rebounding stock market.

The eight biggest US banks have been asked to reveal how much they are planning to pay out in employee bonuses for last year by State Attorney General Andrew Cuomo. The size of the bank’s bonus pool should have been affected if the banks hadn’t received a taxpayer rescue at the height of the financial crisis in late 2008 according to the State Attorney General.

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My Take: It seems to me that they shouldn’t be getting any bonuses. They are the ones who started this mess and they should pay for it. I have an idea! They give their bonuses to the taxpayers! That will never happen! Why not give them a bonus that is simple like Bon Jovi tickets? Or maybe give them hit show theater tickets? I just cannot understand means of dollars in bonuses.

I understand that the stock options are a delayed bonus because they can’t cash them in for three years, but get real. I really do not think they should be getting any kind of a bonus. They may The stock market flowing smoothly, but they also caused big problems for everybody.

I mean, people are using their hobby tools to supplement their income because the economy is so bad. I know friend of mine was into toy trains or rather models trains and he sold them to try and avoid foreclosure on his home. So why should they get bonuses?

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