BoA Approves $4B in Compensation

By: Sean Alfano
Topics: Bailouts

(AP Photo)

Bank of America will dish out $4 billion to its investment bankers and traders in 2009, a source tells the Wall Street Journal Wednesday.

The money is equal to about 19 percent of the $23 billion in revenue created by BoA's investment banking activities and is close to the company's 2006 compensation packages, the source told the Journal ($).

"We tried in determining year end compensation to balance the need to pay competitively with the need to recognize the general concerns about the level of compensation on Wall Street," a BoA spokesman said.

According to the source's estimates, the workers receiving compensation stand to earn between $300,000 and $500,000.

The report comes as speculation heats up that failed insurance giant AIG will hand out $100 million in bonuses this week.

Bank of America Corp. reported in January that it lost $5.2 billion at the end of 2009, citing struggling consumers unable to make mortgage and credit card payments as a catalyst.

BoA said $4 billion of its losses were the result of paying back $45 billion in government bailout money in December.

18 Comments Have Your Say
Email Story Send to a Friend
Share This Tell Your Friends
Tweet This Tweet This
More Share It

Add a Comment

See all 18 Comments


by parisdakar February 4, 2010 1:46 PM EST: If you don't like it, then don't use Bank of America's products & services.; Reply to this comment


by dwilson59 February 3, 2010 1:42 PM EST: Our Great President needs to stop this. All the Big Bankers are just Bush and Chaneys friends and should be put in jail. My President is such a great man I would like to see him punish Big Bankers and there greedy way. We should tax them 99% on there bonuses. I went to BOA to get a loan for a car they told me I have bad credit. If I were a rich greedy person I would get a loan from the greedy banks.

Mr. President Obama you need to help the little people, you should make the banks lend money to the people that cant afforded it. I say help the economy just tax the rich for every penny they have. Then give the money to people that need it.; Reply to this comment


by Henri_Rochard February 3, 2010 1:11 PM EST: "Bank of America will dish out $4 billion to its investment bankers and traders in 2009, a source tells the Wall Street Journal Wednesday..."

Meanwhile, shipping as many 'other' jobs to India and Singapore as fast as they can.; Reply to this comment


by quapawsix February 3, 2010 12:45 PM EST: Greed is another word for Addiction.; Reply to this comment


by culturechang February 3, 2010 12:45 PM EST: As long as they paid back the government, I dont care what stupid business arrangements they make to pay employeee, executives, or traders for thier business failures.; Reply to this comment


by culturechang February 3, 2010 12:44 PM EST: As long as they paid back the government, I dont care what stupid business arrangements they make to pay employeee, executives, or traders for thier business failures.; Reply to this comment


by quapawsix February 3, 2010 12:42 PM EST: If CBS paid her $14,000,000 a year then they are bigger fools than their news people are.; Reply to this comment


by chatmandu7451 February 3, 2010 12:24 PM EST: Of course most of the comments on this issue don't really understand what is involved with the bonuses but at least we will get back 40-50% in income taxes. It's the top 2% of earners that pay 70% of the income taxes.; Reply to this comment


by Imadinnerjacket February 3, 2010 12:21 PM EST: I would like to see the bonus' being paid on a performance base...
If the business does well, and the share holders do well.. the bonus is acceptable... if not.... any bonus is too much...; Reply to this comment


by bajajohn1 February 3, 2010 11:26 AM EST: If they insist on paying these outrageous bonuses after the taxpayer bailout, then they need to pay interest fees to the government.; Reply to this comment