BofA paying big bonuses to retain bankers

[OhioChick]

Source: Reuters

18 Jun 2009, 1649 hrs IST, REUTERS

Bank of America Corp has been paying millions in bonuses in order to lure talent and retain investment bankers the company views as vital, a newspaper said, citing sources.

Among those who are said to have received payouts are two former Merrill Lynch bankers, Fares Noujaim, recently appointed BofA's vice chairman of investment banking, and Harry McMahon, the paper said.

Both were offered guarantees not to leave, the paper said.

Noujaim, a former Bear Stearns banker who joined Merrill last year, is said to have received about $15 million over two years, according to the paper.

Sources told the paper Noujaim was offered a vice-chairman role, and may have been offered at least $5 million more to stay. His earlier employment contract was nullified once Merrill merged with BofA earlier this year, according to the paper's sources.

"Competitive recruiting in investment banking and capital markets continues to be very intense and we're taking the steps necessary to retain key talent in response to competitive pressures," BofA spokeswoman Jessica Oppenheim told the paper.



Read more: http://economictimes.indiatimes.com/International-Busin...

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When does this BS end?

[sarcasmo]

1. The level of GREED makes me ILL.

[OhioChick]

2. Where's the oversight?? n/t

[saigon68]

3. These People would Dig Up their Grandmother's Corpse

To get at her $10.00 wedding ring

Actually they would employ an undocumented person to do it.

That way it would be shielding them from the unpleasantness and smell, and its the Corporate way.

Note: Edited for Profanity

[sarcasmo]

4. Yes and they would pay the undocumented worker two dollars to do the digging.

[Stellabella]

6. I think that's a bit generous. Ten cents is more their speed.

After all, we have to keep that 1000 to 1 salary ratio, you know.

[FailureToCommunicate]

12. Well, they'd PROMISE them two dollars, then threaten to turn them in if

they dared to actually ask to get paid for their work!
BofA management reeks.

[OhioChick]

8. Profanity? Let 'er rip, saigon.

[saigon68]

13. Well on a few days I at least TRY to be civil

But when my medication gets out of whack who knows (just kidding)

And at age 63 I should calm down(Nah)

[OhioChick]

20. "I should calm down"

Hell no....we need to get fired up!

[FailureToCommunicate]

11. Best. "Edit". Ever.

[saigon68]

14. Thx

LOL

[Captain Hilts]

5. Fuck 'em! nt

[Warpy]

7. I know of several who have left, taking their accounts with them.

Ousting Ken Lewis was the best thing they could have done to retain what they have left. The bonuses alone wouldn't have done it.

[lindisfarne]

9. One way to end it is to start using local banks and co-ops. Stop using your Bof A

credit cards (cancel them if you're not planning on buying a house in the next 18 months).

This is the "old-boys network" at work. These people are so incompetent they don't know their buddy is incompetent. We need to hold these people responsible at a much higher level of knowledge. Perhaps annual testing on legal issues of all people at the VP level (or executive level) or higher, including testing on knowledge of legal accounting practices and tax issues.

Anyone making more than $1 million a year should have knowledge of these things - if they don't, they're not worth a 7-figure salary.

[No Elephants]

18. I thought canceling a credit card was undesirable? If you stop using it, why is cancelling needed?

[hugo_from_TN]

21. Actually my mortgage broker said it is better to cancel than not use.

He pointed out on my credit report a couple of cards that were still open but hadn't been used in months. He said I should use each card at least every couple of months because you get dinged for having a line of credit that isn't being used. So now I make a small purchase on each one every so often.

[lindisfarne]

24. If you want to send a message, you cancel it. If you don't want to temporarily slightly decrease

your FICO score, you just stop using it.

If you never use it, you're not really affecting BofA negatively at all.
There's nothing undesirable about canceling a credit card if you're doing it because you don't like their business practices.

Just be aware it can affect your FICO score slightly.

Also, the credit limit on that credit card will be removed from the calculation of your "total available credit" so your total "used credit" will be a slightly higher percentage of your new "total available credit". If you normally charge $3000 a month, have a total available credit of $12,000, you use 25% of your available credit - it's desirable to use less than 25-30% for FICO score purposes. If you cancel a credit card with a $6,000 credit limit, you now use 50% of your available credit. This isn't good for FICO scores.

However, if you have total available credit of $100,000 across 10 credit cards, and you normally charge $3,000/month, then you cancel one with a $6,000 credit limit, it barely affects your usage of "total available credit". In this case, cancelling the card doesn't affect your FICO score.

Not using credit cards doesn't seem to affect my credit score - it's very high and there are some I haven't used in 2+ years. But maybe it would be slightly higher if I did use them once a year?

[roody]

30. I am canceling mine because I refuse to pay a 3% foreign

exchange fee. I'll tell them it is because of the bonuses.

[udbcrzy2]

10. Wonder what they do with their money?

That's alot of money. I cannot imagine someone having that much dough!
I mean after you buy your home and you could get an awesome home, what
do they do with the rest of it. I guess all those fees they collect from us must add up, huh?

[Strong Atheist]

26. Belated Welcome to DU!

[strategery blunder]

15. Fuck BoA.

I paid the entire balance on my CC yesterday in retaliation for them raising my interest rate 10%. Greedy fucks.

It felt soooooooooooooooooooooo good to screw them out of their interest rate increase.

[hugo_from_TN]

22. They are trying to get you to pay it off and cancel, so you did them a favor.

They have too much outstanding consumer credit and are trying to shake off customers to reduce it.

[strategery blunder]

23. I paid it off, but did not cancel.

I will wait until I am in an economic situation that will allow me to secure alternate credit similar to the terms that I originally accepted. My credit is spotless, but my income leaves a lot to be desired (had to go back to school). And yes, I do have a credit history.

I am young enough that such a mentality will be very costly for them. Not only do they forfeit the interest (I had no problem making the payments but just did not want to empty my bank account in this economy until they raised my rate), they also forfeit a few decades of future business including mortgages, etc. Oops.

What really pissed me off was that they said they were raising my rate because of a "credit review," which I discovered to be an absolute crock of shit and BS lie when I actually checked my credit reports. My income has not changed much since I have had the account open, so they can't say that I have an unstable income, either.

I am precisely the kind of customer that a bank does NOT want to lose--a responsible borrower who will also generate reliable interest income for them. For now, I will just become a deadbeat (making a few charges every month and paying immediately to keep the account active). My cancel letter will come after I can replenish my savings and move my credit account to another financial institution (which will probably be a credit union). I anticipate that to take a year or so, especially as I've got a couple grand of vehicle maintenance expenses coming up.

It's possible that my credit limit will take a nosedive when the bank actually notices, but it is doubtful it will have much of an effect upon me that the interest rate hike did not already.

The bank cut its nose to spite its face. The cost in future business to them far exceeded their exposure to my credit card. If they had been honest about saying the interest rate hike was because of general economic uncertainty instead of trying to falsely push it off on a bad credit record (and I *did* check), I would have been more forgiving. It's amazing how much crap they try to offer me--I will definitely enjoy the bank's whining when I do get around to cutting them off completely.

[LeftHandPath]

16. Its our tax dollars...

these guys should be on the same pay scale as Federal Employees. How many people do you need to retain to run an insolvent bank?

[Strong Atheist]

27. Belated Welcome to DU!

[DebbieCDC]

17. Yeah while the fuckers turned down the short sale offer on my house that they hold the paper on

(after buying Countrywide) because they were going to lose $6,000!!

Fuck them all to hell and back. I hope they rot.

[newinnm]

25. Tell me why they should

Dont you owe them that money? Right now our tax revenue is going to these banks to bail them out of a mess where people are upside down in their houses. IMHO that 8,000 dollars that the tax payers will have to give the bank to make up for the 8k you owe them would be much better spent on single payer healthcare.


nnnm

[DebbieCDC]

31. I am NOT upside down on my house

I bought only what I could afford, with a very sizeable downpayment thank you very fucking much.

In this market I can't sell it for a reasonably price and I'm working two jobs to hold on

Any more fucking smart mouth comments you want to make without knowing the situation?

[WriteDown]

32. Have you contacted your car loan to have them

reduce the payoff? Its amazes me that people complain about a drop in housing prices, but lose multiple thousands of dollars when they drive off the lot and never say peep.

Also, I am curious if the market was doing gang-busters, would you send in any excess profits you make in the sale of the house back to the mortgage servicer? Only seems fair.

[DebbieCDC]

33. You can live without a car

Trying living without a place to live that you can't afford through no fault of your own and getting your credit rating ruined in the bargain

Then come and talk to me with your bullshit

[WriteDown]

34. Like I thought...

No real response. Few can live without a car. And that also ruins your credit.

[DebbieCDC]

35. So I guess you don't approve of all of the president's efforts to save people's houses ??

Via mortgage modifications, etc.

Wow, must be nice of your side of the tracks. Do you work of BoA or Wells Fargo?

By the way, how much of your profits do you give to charity each year? Do you volunteer? Do you donate? Or do you sit on your ass in your nice house passing judgment on everyone?

I bet you have a nice car too? Paid for? how about kids college? Dentist bills? Gee you must be in fat city with your attitude.

Must be nice to be you

[WriteDown]

40. Two very different issues..

We are talking about short sales as opposed to modifications. The president's program also subsidizes modifications, therefore the servicers actually get paid to modify their loans.

My issue is not with the program is the sense of entitlement. Why should the servicer be required to take 100$ of the loss? Do they get any profit when someone flips a house and makes 100K?

My side of the tracks? You have me laughing with that one. I've been robbed twice since I've lived here. I did buy the property with the hopes that values would increase. They are building a new light rail line about 4 blocks from me.

I donate roughly 10%. And volunteer my free time at the local animal shelter.

I do have a nice car, and it will be paid for in February. I put off having kids for many years so that I could get my expenses and career up to snuff to actually support them(if I ever have them).

[newinnm]

36. I know All I need to know

You bought a house... you borrowed money to buy it. you cant afford it so now you want the bank to suck it up. Anything Im missing?


-nnnm

[DebbieCDC]

37. Ever lose a job asshole?

Ever have to work two jobs to make ends meet?

I thought not

I guess I'm just a loser who didn't work hard enough in your book huh.

Fuck you - go back to freeperville where you belong

[newinnm]

38. Yes Ive lost a job

I was out of work for almost a year. Worked two jobs to feed my family. I too had a tough time with my mortgage but we turned off our cable, cells phones, stopped eating out, went to the food bank and even got boarded a college kid to bring in money to pay all of our bills so dont some fucking crying to me about how shitty life is.


As to whether you are a loser who didnt work hard enough? I dont know you so I cant answer that. My suspicion is that you thought that because people on here are liberals that we would subscribe to your philosphy that because you owe it to a big corporation then its ok if you stick it to them. You ever wonder my many union pension funds have investments in BOFA? Should those union members take it in the ass because you dont wanna pay?


-nnnm

[HCE SuiGeneris]

39. Christ -- you're an a-hole.

No one came crying to you. You entered the thread yourself.

[OhioChick]

42. What's with the crudeness? n/t

[Zhade]

19. With OUR money, of course. Thanks for nothing, Obama.

NT!

[JackRiddler]

28. "Talent"

[lark]

29. BOFA sux

My sister has worked for them for 10+ years(they bought out the bank she worked for) and is a Budget Director. Her staff has been cut, she's had no bonuses for the past 5 years and has had no raise the last 2. They are among the worst of the worst in screwing all their ee except for the EVP's and up. While she's working 60 hour weeks doing the job of 2 people and getting basically nothing for it, the top folks are getting 6 and 7 figure bonuses.

DO NOT USE BANKS - DO NOT SUPPORT THE FOLKS THAT GUTTED THE WORLD'S ECONOMY. Credit Unions are reasonable businesses, notice none of them needed to be bailed out because they weren't fraudulent to begin with.

[rocktivity]

41. The same kind of talent who failed so badly a government bailout was needed?

rocktivity

[OhioChick]

43. Yep.....The best that money can buy. n/t

[moondust]

44. How much talent does it take to roll a pair of dice?

Monkeys only ask room and board.

[Joanne98]

45. They're so unpatriotic they can't help the country without getting paid for it!

[midnight]

46. OC the only reason I was not able to rec. this is because I just

saw this. This industry that has created domestic terrorism is paying bonuses for the intensity that this disaster has created. It is so hard to understand how these people keep expecting us to care. There are children who are not eating in this country. People who don't have a place to live, and I just can't see paying someone five million to stay at their job who helped create this mess. I know plenty of men and women, who can balance a check book, who could probably do a better job for less. This mindlessness keeps cycling.