If you were operating in an industry where many have lost their jobs, would you pay bonuses to your current staff? If your company had received billions of dollars in taxpayer money, would you pay bonuses to your current staff? If your answers were "no", then you would not be in the brokerage business.
Morgan Stanley recently took control of Citibank's brokerage unit (probably using taxpayer money). Now they will be paying $3 billion in so-called retention bonuses to the brokers. And, the bonuses will be based on what the brokers did in 2008.
It really is a very different world these people operate in. Will the guardians of the TARP let it happen? Do you have any doubts?
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