Morgan Stanley bankers complain about getting a ‘s***’ $44,000 bonus as US plunges into recession

Morgan Stanley bankers complain about only getting a ‘s***’ $44,000 bonus as US plunges into recession

  • Morgan Stanley bankers have been complaining about their small bonuses 
  • Usually junior bankers receive payouts of between $70,000 and $100,000
  • This year they seem to be in a rage after only raking in $40,000 to $45,000
  • America entered a recession after the economy contracted for a second quarter

Bankers at one of the biggest firms on Wall Street have been complaining about how small their bonuses are — after they raked in between $40,000 and $45,000.

Junior bankers at Morgan Stanley appeared outraged after their bonuses were cut tens of thousands of dollars.

Usually they would receive payouts of between $70,000 and $100,000. This year’s bonus is reportedly 30 per cent of their annual salary of around $140,000.

The decrease may be owing to fewer corporate deals being completed amid an economic slowdown. 

America entered a recession after the US economy met the classic definition of a downturn by contracting for the second straight quarter.

Bankers at one of the biggest firms on Wall Street have been complaining about how small their bonuses are — after they raked in between $40,000 and $45,000 (File image)

Bankers at one of the biggest firms on Wall Street have been complaining about how small their bonuses are — after they raked in between $40,000 and $45,000 (File image)

Quarterly GDP growth is seen over the past four years, showing the pandemic recession in early 2020 and the current contraction cycle

Quarterly GDP growth is seen over the past four years, showing the pandemic recession in early 2020 and the current contraction cycle

The consumer price index hit a four-decade high of 9.1 percent in June -- an astounding level of inflation for an economy that was apparently shrinking

The consumer price index hit a four-decade high of 9.1 percent in June — an astounding level of inflation for an economy that was apparently shrinking 

President Joe Biden denied the country is in a recession and the White House has been pushing messaging that a recession has to be officially declared by the National Bureau of Economic Research

President Joe Biden denied the country is in a recession and the White House has been pushing messaging that a recession has to be officially declared by the National Bureau of Economic Research

Bankers attacked the mid-range bonuses on financial blog Wall Street Oasis, The New York Post reported.

One banker wrote: ‘What the f*** is this s***??? Why would anybody choose to take such a f***ing ENORMOUS discount.

‘I just took home 44k. What the actual f***.’

Meanwhile, another added: ‘That’s a s*** bonus for what’s supposed to be a top bank.’

US gross domestic product shrank 0.9 per cent in the second quarter, following a decline of 1.6 per cent decline in the first quarter. Two consecutive quarters of shrinking GDP is the classic definition of a recession

US gross domestic product shrank 0.9 per cent in the second quarter, following a decline of 1.6 per cent decline in the first quarter. Two consecutive quarters of shrinking GDP is the classic definition of a recession

The Fed has raised interest rates rapidly in 2022, going from near zero to a target range of 2.25 to 2.5 percent, in a bid to tackle rising inflation - but higher borrowing rates also put the brakes on economic growth

The Fed has raised interest rates rapidly in 2022, going from near zero to a target range of 2.25 to 2.5 percent, in a bid to tackle rising inflation – but higher borrowing rates also put the brakes on economic growth

The economy has been adding jobs at a steady pace even as GDP shrinks, which some analysts point to in arguing that the economy is not in a recession

The economy has been adding jobs at a steady pace even as GDP shrinks, which some analysts point to in arguing that the economy is not in a recession

Although two quarters of shrinking GDP is the classic and informal definition of a recession, the White House has denied that the US meets the criteria for a recession, saying a panel of economists must officially declare that the economy is no longer expanding. 

The Commerce Department confirmed in a report on Thursday that US gross domestic product shrank 0.9 percent in the second quarter, following a decline of 1.6 percent decline in the first quarter. 

Republican critics accused the administration of flying in the face of reality, with House Minority Leader Kevin McCarthy saying in a floor speech: ‘You would rather redefine a recession than restore a healthy economy.’

Earlier in July Barclays bankers had similar complaints, suggesting the financial sector might be gearing up for some tighter bonuses.

Barclays analysts claimed first year bonuses for this year were 40 per cent of salary for this year as opposed to 85 per cent in 2021.

McCarthy shared a poster Thursday that he says shows Biden blamed everything other than his policies for the downturning economy, including COVID, Putin and supply chain issues

McCarthy shared a poster Thursday that he says shows Biden blamed everything other than his policies for the downturning economy, including COVID, Putin and supply chain issues

Federal Reserve Chair Jerome Powell also denied the country is in a recession, prior to the release of Thursday's GDP report

Federal Reserve Chair Jerome Powell also denied the country is in a recession, prior to the release of Thursday’s GDP report

What is GDP? How the government measures the economy 

Gross domestic product, or GDP, is a measure of the total market value of all goods and services produced within the United States.

The Bureau of Economic Analysis uses real GDP, which is adjusted for inflation, for its quarterly report on economic growth. 

The agency’s formula for GDP adds together four elements: consumer spending, business investment, government spending, and net exports (exports minus imports) to arrive at a total.

The formula for GDP does not include volunteer services or illegal activities. 

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Staff at JPMorgan and Goldman Sachs are likely to find out about their bonuses next week. 

Other users on the financial forum mocked the bankers for whining about the bonuses, which are close to the average yearly salary for Americans.

The average salary across the country is $53,000, according to the US Bureau of Labor Statistics. 

Wednesday’s report on GDP from the Bureau of Economic Analysis is an advance estimate that is likely to be revised in the coming months.

The report pointed to weakness across the economy, noting that consumer spending slowed as Americans bought fewer goods. 

Business investment fell, and inventories tumbled as businesses slowed their restocking of shelves, shaving 2 percentage points from GDP.

Higher borrowing rates, a consequence of the Federal Reserve’s series of rate hikes, clobbered home construction, which shrank at a 14 percent annual rate. Government spending dropped, too.

Partially offsetting those declines were increases in exports and consumer spending, the report said. 

For months, the US economy been sending conflicting signals that have baffled economists and policymakers. 

Inflation has continued to soar even as growth slows, conjuring dark memories of ‘stagflation’ in the 1970s.

The labor market is strong, with far more job openings across the country than there are people seeking work. It’s a situation that should drive strong wage growth, but wages have failed to keep pace with inflation. 

And consumers, whose spending accounts for nearly 70 percent of economic output, are still spending strongly, though at a slower pace. 

MailOnline has contacted Morgan Stanley for comment.

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