Will Bonuses Really Be That Good At Non-TARP Banks This Year?
There is little doubt one of the main motivations for paying back the TARP was to allow firms the flexibility to pay their top people commensurate with their pre-crash expectations and avoid further defections. But will the bonus and spending floodgates really reopen this year in light of a still shaky economic reality? How many of the 10 firms who are now free of the TARP shackles are going to bet that there is no way whatsoever they will need a helping hand from the government if the economy goes back in the toilet? Those that do better be right.
Banks Trade TARP for Bonuses, Debauchery, Jets [Bloomberg]