Wall St. keeps coming up with new ways to waste money and upset Congress, the Administration, and the public.
Part of the argument made by large financial firms for paying out big big bonuses is that their best people, the ones who make their companies all the money, will leave.
The latest chapter in this race to get money into the hands of bankers and brokers before the government shuts down the game is that the new joint venture between Morgan Stanley (NYSE:MS) and Citigroup (NYSE:C) will likely pay out $3 billion in retention bonuses
According toThe Wall Street Journal, “While the terms aren’t expected to be announced until later this month, the issue could grow politically sensitive, because the U.S. government holds stakes in Citigroup and Morgan Stanley as part of its bailout of the financial system”
Paying the retentions fees will never happen. Either Morgan Stanley and Citigroup figure that the they will not lose enough of their senior brokers to cost them the $3 billion, or the Treasury Secretary will call the company and say “no”, not with the government’s money”
It will probably be the call with the “no” at the end. Wall St. is too used to wasting money.
Douglas A. McIntyre
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