Posted on 09/21/2008 3:06:14 PM PDT by LiveFreeOrDie2001
Fury at $2.5bn Lehman bonus Nomura and Barclays table bids today for US giant’s London operation as bank’s administrator likens collapse to EnronJohn Waples and Danny Fortson STAFF at Lehman’s New York office who helped to cause the world’s biggest corporate bankruptcy are to share in a $2.5 billion bonanza. The bonus, which has been described by London staff as a “scandal” has been pledged by Barclays Capital, the British-based bank that last week acquired Lehman’s American operation and took on 10,000 staff. The $2.5 billion (£1.4 billion) pot, which has been ring-fenced as part of the acquisition, has caused huge resentment among the 5,000 staff in the firm’s European and Middle Eastern operations who are not guaranteed to be paid after this month. There are, however, hopes that half the jobs in Lehman’s Canary Wharf office could be saved today by either Barclays or Nomura. Bids are being submitted for its UK equities and investment-banking business. A Chapter 11 bankruptcy document filed by Lehman Brothers Holdings Inc says that Barclays has identified eight individuals out of the New York staff of 10,000 who are vital to make the deal succeed and a further 200 who are identified as “key”. It is thought that these eight directors will be locked into two-year contracts worth between $10m and $25m a year. Related Links Paulson hailed as hero for stemming market slide A sickening slump gives way to euphoria The $2.5 billion had been accrued as part of the contribution to Lehman’s group profits for the first nine months of the year. Barclays said there is no obligation to pay it out but analysts say the competitive pressure to keep key staff means he will have to. p>
(Excerpt) Read more at business.timesonline.co.uk ...
I know people like to have knee jerk reactions around here, but this is a business decision.
Paging Nell Minow! Can’t the share holders sue to reclaim the bonuses from the board of directors for not doing their jobs?
Let’s see if we can post this in a more readable format...
Staff at Lehman’s New York office who helped to cause the world’s biggest corporate bankruptcy are to share in a $2.5 billion bonanza.
The bonus, which has been described by London staff as a “scandal” has been pledged by Barclays Capital, the British-based bank that last week acquired Lehman’s American operation and took on 10,000 staff.
The $2.5 billion (£1.4 billion) pot, which has been ring-fenced as part of the acquisition, has caused huge resentment among the 5,000 staff in the firm’s European and Middle Eastern operations who are not guaranteed to be paid after this month. There are, however, hopes that half the jobs in Lehman’s Canary Wharf office could be saved today by either Barclays or Nomura. Bids are being submitted for its UK equities and investment-banking business.
A Chapter 11 bankruptcy document filed by Lehman Brothers Holdings Inc says that Barclays has identified eight individuals out of the New York staff of 10,000 who are vital to make the deal succeed and a further 200 who are identified as “key”. It is thought that these eight directors will be locked into two-year contracts worth between $10m and $25m a year
And it’s a political decision to bilk American taxpayers out of $700 billion dollars.
B L A T A N T C O R R U P T I O N
The share holders are the gamblers here, not the poor workin stiff who is doing as ordered by the firm.
Let’s hope this pisses lots of people off in the financial sector. Good to know that the Bushies weren’t gullible enough to try and bail these crooks out.
Using taxpayer money.
It’s Barclays money to spend. So it’s noneja business.
Bonuses are a big part of the pay at oil companies, as well. It is the reason that safety is often secondary to profit. The unit managers get big bucks for keeping costs down, and the little people who do all the work and take all the risks get little bonuses.
These are the people that made the company the big success it is today! You definitely want to keep these people around ...
... right?
The Chinese merchants used to take managers like that, chop off their heads, and hang them on poles in front of the place of business. Today the Chicom Red Army puts a bullet in their brains and sends the bill to the family.
Now "key staff" are to be rewarded with vast sums?
It's not like any of these guys isn't replaceable.
Lehman CEO Fuld is a Democrat. http://www.newsmeat.com/ceo_political_donations/Richard_Fuld.php
LOL.
“Using taxpayer money.”
No. The Feds let Lehman go BK. A British bank has bought it in bankruptcy proceedings.
Ping.
If Barclay’s want to pay a bunch of tools from LB a bunch of cash, well, that’s their prerogative.
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