A Goldman source tell us: “This will shake the market to the core. Here comes the double dip,” Dow is already down over 100 points and Goldman shares are off 12 percent. “They’ve charged a know-nothing VP, but this goes all the way to the top and they know it.”
that’s gonna leave a mark
Bank of America ML revealed its new and exciting bonus structure yesterday, and while the dearly departed Ken Lewis would remind everyone they should be thankful they’re getting anything, unlike some people [this guy], employees are apparently not so keen on getting very little cash and stock paid out over the next decade.
The math works as follows:
If bonus is:
-> between $100k and $250k, only 35% in CASH, next 17.5% in STOCK in Aug 2010, next 17.5% in Aug 2010 in STOCK and last 30% in STOCK over 3 years
-> between $250k and $500k, only 24% in CASH, next 18% in STOCK in Aug 2010, next 18% in Aug 2011 in STOCK and last 40% in STOCK over 3 years
Employees at associate and VP level are highly disgruntled given JPM / MS and even Citi giving significantly more cash.
Senior bankers will get 5 percent to 15 percent of their bonus in cash, compared with about 50 percent at Bank of America last year, said the people, who declined to be identified because the talks are private. Junior bankers may get 25 percent of their bonus in cash, said two people familiar with the matter. The rest will be paid in shares and cash over time depending on the stock’s performance, the people said.
Finally, it pays to be Kenneth Feinberg’s special-needs CEO. You get this insider info before everyone else. The Times reports:
Under the plan, which will be announced in the next few days by the Treasury Department, the seven companies that received the most assistance will have to cut the annual salaries of their 25 best-paid executives by an average of about 90 percent from last year. The executive’s total compensation — including bonuses and retirement contributions — will drop, on average, by about 50 percent. The companies are Citigroup, Bank of America, the American International Group, General Motors, Chrysler and the financing arms of the two automakers.
Wells Fargo “Rode The Stagecoach From Hell” Into Black Churches In Attempt To Exploit Congregants, Says Ex-Wells Employee
By Equity PrivateI know it sounds bad, but that’s only because it might actually be that bad. Beth Jacobson, a former loan officer at Wells Fargo, sat down with the Times this weekend to get into the nitty gritty of her craft. Generally speaking, Jacobson described her work as ten years of riding “stagecoach from hell…systematically singling out blacks in Baltimore and suburban Maryland for high-interest subprime mortgages.” Okay, but specifically, how did she and her colleagues do it? I’m glad you asked.
“We just went right after them,” said Ms. Jacobson, who is white and said she was once the bank’s top-producing subprime loan officer nationally. “Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches, because it figured church leaders had a lot of influence and could convince congregants to take out subprime loans.”
Interesting! Sort of fucked up, sure, but before we start name-calling, let’s hear more about the process.
In 2001, former loan officer Tony Paschal states in his affidavit, Wells Fargo created a unit in the mid-Atlantic region to push expensive refinancing loans on black customers, particularly those living in Baltimore, southeast Washington and Prince George’s County, Md.
“They referred to subprime loans made in minority communities as ghetto loans and minority customers as ‘those people have bad credit’, ‘those people don’t pay their bills’ and ‘mud people,’ ” Mr. Paschal said in his affidavit.
He said a bank office in Silver Spring, Md., had an “affinity group marketing” section, which hired blacks to call on African-American churches. “The company put ‘bounties’ on minority borrowers,” Mr. Paschal said. “By this I mean that loan officers received cash incentives to aggressively market subprime loans in minority communities.”
Emphasis ours, but only because we wanted to make it easier for Wells to respond to the allegations. Here’s the statement offered to the Times:
- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
