Now we see that Bank Of America is paying BIG bonuses to many ex-Merrill Lynch stockbrokers. Since they were given approval by the government to buy Merrill Lynch, B of A now must pay (sometimes bonuses in the millions) to keep the good stockbrokers.
Stockbrokers are always being offered deals to switch companies because their clients are apt to stay with them–not a particular company. So are the stockbrokers going to tell their clients, we need to switch to B of A products — but forget to tell the client that they just received a muti-million bonus to work for B of A?? What do you think?
Here is a good article on this practice — I am so glad I don’t have to worry if my stockbroker has my millions in good products! http://seekingalpha.com/article/103916-why-bank-of-america-has-to-re-hire-merrill-s-brokers
These executives should be grilled by congress, made to refund the bonuses, then put in jail.
By: Gerald on January 24, 2009
at 2:29 PM
Too bad Congress is mostly show—look at the new Treasury secretary nominee–Geitner— who didn’t pay self-employment taxes for 4 years, got audited, paid 2 years and then paid up after nomininated by Obama. He admitted he would not have paid if not nominated, but Congress still did not care–Obama and REID called it an “honest mistake” and fully back him to lead the IRS. He did NOT even pay penalties or interest on his $40,000 + back taxes!! THIS IS CHANGE we voted for?
By: loanarranger on January 24, 2009
at 6:18 PM