New report exposes the 1% behind big bank bonuses
The nation’s top six banks -- Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, Morgan Stanley and Goldman Sachs -- paid out $144 billion in bonuses and compensation for 2011, second only to the record $147 billion they paid out in 2007 at the height of the economic boom, according to a report just released by The New Bottom Line. Four banks – Bank of America, JPMorgan Chase, Wells Fargo, and Morgan Stanley – were awarded record high bonuses and compensation in 2011, despite their bleak stock performance during the year.
“Even though top bank executives have claimed that bonuses are down as much as 30 percent for 2011, total compensation has not decreased at all,” according to The New Bottom Line’s report, “Pulling Back The Curtain: The 1% Behind The 2011 Big Bank Bonuses.”
These near-record bonuses come amidst the news that a settlement is near between Wall Street banks and a group of states Attorneys General, including a predicted $20-25 billion in loan modifications and principal reduction. While the big banks continue to profit off the loss of the 99%, this potential sweetheart deal could let the banks off the hook for their crimes and only pay a small drop in the bucket.
The New Bottom Line, which works with foreclosed families and underwater homeowners around the country, has called on President Obama to order a full investigation into the fraudulent and illegal activities of the big banks during the mortgage crisis. The New Bottom Line also maintains that a minimum of $300 billion in principal reduction for homeowners
Instead of going to bonuses and compensation, the report details how this money could used to rebuild the economy decimated by the Wall Street banks during the mortgage crisis. Specifically:
The New Bottom Line (NBL) is a new and growing movement fueled by a coalition of community organizations, congregations, and individuals working together to challenge established big bank interests on behalf of struggling and middle-class communities. Coalition members include PICO National Network, National People’s Action (NPA), Alliance for a Just Society, and dozens of state and local organizations from around the country.