Comments on: Wall Street Bonuses http://www.1115.org/2009/02/05/wall-street-bonus/ Thu, 09 Feb 2012 21:49:02 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Jeff http://www.1115.org/2009/02/05/wall-street-bonus/comment-page-1/#comment-98214 Jeff Tue, 10 Feb 2009 18:36:58 +0000 http://www.1115.org/2009/02/05/wall-street-bonus/#comment-98214 Bonuses in the finance industry are fueled by market inefficiency. In good times, the institutions skim the cream and a good deal of the milk to fund massive bonuses. However, there is no intrinsic value in the service provided. Other firms are willing to pay Wall Street to broker a deal using other people's money. It is a world of voodoo deal-makers, insider protection, buddy networks, and old-school graft disguised as expertise. If my corporation wants to raise capital through the sale of stock, why do I need to pay a bunch of Wall Street parasites millions of dollars? If I want to bundle up a group of mortgages and re-sell them, why do I need to contribute toward the $2,000,000 bonus of some mid-level blood-sucker at Morgan-Stanley who is not assessing the risks? The people in the game are openly dismissive of the "suckers" they have for clients, and they may not be off-base. Bonuses in the finance industry are fueled by market inefficiency. In good times, the institutions skim the cream and a good deal of the milk to fund massive bonuses. However, there is no intrinsic value in the service provided. Other firms are willing to pay Wall Street to broker a deal using other people’s money. It is a world of voodoo deal-makers, insider protection, buddy networks, and old-school graft disguised as expertise.

If my corporation wants to raise capital through the sale of stock, why do I need to pay a bunch of Wall Street parasites millions of dollars? If I want to bundle up a group of mortgages and re-sell them, why do I need to contribute toward the $2,000,000 bonus of some mid-level blood-sucker at Morgan-Stanley who is not assessing the risks? The people in the game are openly dismissive of the “suckers” they have for clients, and they may not be off-base.

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