Bank of America plans big pay hike for investment bankers
Filed under: Economy, Investing
Bank of America Corp. (BAC) may take American International Group Inc.'s (AIG) position as the financial institution Americans love to hate most. Then again, with word coming that the AIG bonuses may have been larger than expected, the insurance company could prove tough to beat.According to Bloomberg News, Charlotte-based BofA "plans to increase some investment bankers' salaries by as much as 70 percent following the takeover of Merrill Lynch & Co., people familiar with the proposal said." This is the same bank that got $45 billion in support from the federal government.
Pay for managing directors would climb to about $300,000 from $180,000 while less senior directors would increase to $250,000 from $150,000, and vice presidents would get $200,000, up from about $125,000, according to Bloomberg.
Some analysts have argued that the Charlotte-based bank, which lost $2.4 billion in the fourth quarter, should be nationalized, according to the Los Angeles Times. Some critics think Lewis is full of it.
"Lewis has made some outrageous statements in the past, and his forecasts have not been that accurate," analyst Paul Miller of Friedman, Billings, Ramsey & Co. told the paper. "I think the regulators will not allow him to pay back the capital given the expected losses coming from his balance sheet."
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Reader Comments (Page 1 of 12)
3-27-2009 @ 5:42PM
lou said...
These large bank CEOs said they were going to raise salaries on their top people because of the $500,000 limit on bonuses set in place by Obama for TARP recipients. This is just a way to get around the limits. Arrogance and greed go hand in hand with this bunch of jackal bankers.
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3-28-2009 @ 3:35PM
joe said...
These BIG BANKING PIGS THINK THEY ARE SUPPOSED TO GET EVERY THING AND WE ARE SUPPOSED TO GET NOTHING ! OR PEANUTS THEY WILL NEVER SATTISFIED! GOD BLESS AMERICA AND MOST OF THEM ARE NOT FROM HERE!
3-28-2009 @ 6:04PM
jeff said...
Why should congress get a raise? What have they done deserve a raise. They raise a stink about AIG bonuses just to take the focus off of their total miserable failures.
3-27-2009 @ 6:20PM
steve said...
And the little people keep paying for this foolishness. They are way over paid. Look at the perks not mentioned. They cost money as well. Send them a tea bag.
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3-27-2009 @ 5:49PM
D said...
I and several of my friends and relatives are immediately going to close our B of A accounts. With the arrogance and issues with the leaders of this firm that already has taken place, I am fed up with their greed! The rates and the fees imposed, nickle and dime of everything else and yet they do the things they do....they should be ashamed. The lower payed tellers and staff should sign petitions and all walk out one day together.
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3-28-2009 @ 7:33PM
Lin said...
I absolutely agree with you. I think that would hit them the hardest, if everyone would do this. I don't have any accounts there and have already closed the credit card i have with them. I live in California and they ticked me off when they decided to give credit cards and free accounts to illegal immigrants....then my rates went up.
3-28-2009 @ 4:49PM
whitey said...
Obama tells me who to hate and I hate them.
Obama tells me who's to blame and I blame them.
Obama tells me what is right and what is wrong.
3-28-2009 @ 4:50PM
whitey said...
Who cares?
3-31-2009 @ 6:11AM
Anna Richard said...
I wish everyone would close accounts with B of A. They're Arrogant and Greedy as hell. They're trying to get around Obama's limits but if the day comes for a bailout, please tell them NO! They just thought they were smart-asses, but there's always someone smarter, you know.
3-28-2009 @ 7:51PM
kelly said...
dont close it yet b.o.a. has to pay every body $78.00 for back fees they lost civil suit but you haVE TO SEND A ACCOUNT # NAME AND BANK LOC. BEFORE MAY 5 OR YOU LOSE IT B.O.A. IS TRYIN TO HIDE THIS FR. THE PULIC LET ALL YOU FRIENDS KNOW
3-27-2009 @ 9:10PM
Todd said...
Wtf - these bastards need to be arrested. No raises until the stock is back with full dividends.
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3-28-2009 @ 4:50PM
whitey said...
Shut up! Quit whining.
3-27-2009 @ 6:39PM
camille said...
So quit patronizing B of A and any of the other businesses that you oppose the manner in which they do business. Easy enough ...just do your research on your bank and credit cards and insurance companies.
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3-27-2009 @ 6:31PM
Artie said...
You gotta be kidding me!!! IF what the article above says is true about BOA and Ken Lewis, I'm with those of you who responded that these bankers and other financial "wizards," like Lewis, and his counterparts at AIG, should be behind bars. I'm tired of hearing how these arrogant financial executives, who got themselves, their companies and this country into this financial mess, can, without any apparent conscience and reservation, flagrantly give the taxpaying public the "middle finger" while they pay themselves even bigger salaries and ridiculous bonuses. And, mind you... all of this is being done on the taxpayer's dime. What is wrong with this country and this picture? One of these days there is going to be a taxpayer revolt. In the meantime, someone really ought to shoot one of these sons of bitches in the head for sport and make an example out of him.
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3-27-2009 @ 11:53PM
Tip Sanders said...
The bank stock my wife is due to inherit is worth about 15-20% of what it was a year ago. Because of the overexposure these lenders have done there is little confidence in the system. With our wonderful political oversight (not) that should have raised some objections a couple years back and the toxicity in the mortgage market it may be decades before stock rebounds, if it ever does.
The fear mongering from our leaders has done little to encourage people to get back into the market and it appears that is their reasoning. They can't nationalize and take over everything unless it fails. So they continue to discourage investments by drubbing the financial sector. Real leaders instill confidence by making good choices in those who surround them. It is apparent by our Presidents choices that he chose hooligans and political cronies for his staff. We are in for a long, slow recovery thanks to the lack of leadership in our nation. Throw the lot of them out that have voted for these bailouts and especially the 3 RINOs that voted with the Democratic majority. I applaud the few Democrats that have the gumption to stand for fiscal restraint. I hope the Lord is merciful this nation for our ignorance and idolatrous geed of money.
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3-27-2009 @ 7:20PM
jkprblmslvrs said...
Thats enough!!!! I have now officially become a thief!!! WHERE IS MY BAILOUT???
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3-27-2009 @ 7:00PM
randy3452 said...
This is CRAP! We work our asses off, pay our taxes, give "free" money to the bank to play with...and for what? They give it all away to themselves. They should be taking a cut in pay to ensure us that they are doing the job we expect of them. Paying someone to stay...Bullshit!...Let them go, there are plenty of unemployed experts willing to get those jobs!
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3-27-2009 @ 7:16PM
V. Marchisotto said...
HE'S ALREADY SHOWN HOW GREEDY AND STUPID HE IS!!!!PUT HIS ASS ON THE STREET!!! BOA SUCKS-SHUT THE BADSTARDS DOWN AND TURN THEIR HEADQUARTERS INTO CONDO'S FOR THE HOMELESS AND UNEMPLOYED!!!!! LEWIS FU!!!!!!!!!!!!!!!!!BOA GO TO HELL!!!!!!!!!!!!!!!!!!!!!POST THIS!!!!!!!!!!!
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3-27-2009 @ 7:26PM
David Novitske said...
Management has been heard from. Government has been heard from. Now is the time for all shareholders in all companies, banks, etc to be heard from. Read the annual reports and proxy statements and VOTE. Accept and exercise your right and responsibility as an OWNER of the business. Yesterday, I received a proxy statement from a company I own stock in and voted against ten of the fifteen nominees for BOD. I also voted FOR the six shareholder sponsored resolutions; management recommended an AGAINST vote. One resolution entailed giving the shareholders the right to cast an advisory vote regarding compensation. This resolution appears in almost all current proxies; I have seen it on five I have received in recent weeks. In all cases, management recommended voting AGAINST it; I voted FOR it in all instances. We are all in this together. BTW - I don't own BAC stock, but I inherited stock in another bank that has stumbled badly the last year. :0(
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3-27-2009 @ 9:51PM
engineer04 said...
David N- Agree that the only way to make a statement first hand, outside of refusing to do business with a bad corp is to use your proxy vote to do so, if you have stock. I just sent in my own Proxy vote against GE's Jeff Immelt and Co. Thankfully, I got rid of BAC way back in late '07- thanks to my own astute radar on this ominous econ. outlook. Had I listened to my Financial Advisor- I'd still be mired in waiting out a BAC stock at 2.50 a share. Still have 75 shares of JPM from an inheritance- but thats minimal. Good luck man, with your own situation.