LayoffBlog.com

March 15, 2009

Bailed-out AIG Pays Out Hundreds of Millions in Bonuses

Bailed-out insurance giant AIG will no doubt be a heated topic of discussion today, with The Wall Street Journal and other news organizations reporting that the failed and essentially insolvent company is vowing to pay out $450 million in bonuses to its “top performers” — you know, the folks in the financial products unit, many of whom contributed to bringing the company to ruin and helped tank the entire economy in the process.

Update (03-15-2009): “There are a lot of terrible things that have happened in the last 18 months, but what’s happened at AIG is the most outrageous,” Lawrence Summers, chairman of the White House National Economic Council, said this morning on ABC’s “This Week With George Stephanopoulos. “What that company did, the way it was not regulated, the way no one was watching, what’s proved necessary, it is outrageous.” (ABC,  “Widespread Backlash Over AIG Bonuses“)

Update (03-16-2009): AIG revealed on Sunday details of $105 billion of government funds that it paid to U.S. and international banks including Goldman Sachs, Deutsche Bank and Societe Generale. (Source: MarketWatch)

Update 2 (03-16-2009): Obama Orders Treasury Chief to Try to Block A.I.G. Bonuses (Source: NYTimes)

Update 3 (03-16-2009): NY AG Seeking Info On Who Received Bonuses At AIG (Source: CNNMoney)

Update 4 (03-16-2009): AIG details $105 billion in payouts (Source: MarketWatch)

AIG Facts:

  • The company (AIG) takes $170 billion in taxpayer money to keep itself afloat.
  • Just this month, the company (AIG) reported a loss of $61.7 billion for the fourth quarter of last year — the largest corporate loss in history.
  • AIG’s board of directors page (the company’s “top performers”)

Source: Washington Independent, AP

January 30, 2009

Morgan Stanley, Goldman mull more job cuts

Morgan Stanley (MS.N) and Goldman Sachs (GS.N) are considering further cuts in staff, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Morgan Stanley is considering laying off up to 5 percent of its 47,000 employees, while Goldman Sachs is also contemplating further cuts in staff after letting go about 10 percent of its employees late last year, the paper said.

Source: Reuters

November 20, 2008

Clean up your locker and hit the road, Mr. Murti at Goldman Sachs

According to NY Times (05/21/2008): “An analyst at Goldman Sachs, Mr. Murti has become the talk of the oil market by issuing one sensational forecast after another. Mr. Murti remembers the pain of the oil shocks of the 1970s. But he is bracing for something far worse now: He foresees a “super spike” — a price surge that will soon drive crude oil to $200 a barrel.”

According to CNN Money (11/20/2008): “crude futures fell $4 to settle at $49.62 a barrel, the lowest settle price since May 23, 2005”.

LayoffBlog.com comment: “Clean up your locker and hit the road, Mr. Murti”.

November 18, 2008

No Bonuses for Top Goldman Executives

“Business Week: Much has been made today of the news that Goldman Sachs’ top seven executives, including CEO Lloyd Blankfein, are giving up their bonuses for 2008. According to a story in today’s Wall Street Journal, the move follows “months of internal debate” at the Wall Street firm, and that now that Goldman has acted, other firms on “Lloyd watch,” as the Journal calls it, will follow suit. Indeed, Swiss bank UBS has already done so, axing bonuses for its executive board members. The WSJ’s DealJournal blog referred to the bonus cut as “The Neutron Bomb of Wall Street.””

Full story

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