|Friday, 1 March 2024
The Hellenic Radio (ERA): News in English, 09-08-03
From: The Hellenic Radio (ERA) <www.ert.gr/>
 High Bonuses Versus UnemploymentNews
Obama administration has warned of high unemployment rate in the US till mid 2010 without commitments about implementation of new taxes if necessary. In the meantime, large world banks such as Barclays has indicated large profits in the first half of 2009 while HSNC significant losses. On the other hand anger is mounting following articles about increase in amount of bonuses of Wall Street and City bank executives despite the financial crisis.
Financial crisis does not seem to exist for bank giants in the two sides of the Atlantic.
According NY Prosecutor's Office thousands of Wall Street bank executives and brokers received high bonuses last year when the financial crisis was at its peak. Hundreds of millions of dollars were distributed to golden boys in Goldman Sacks, Morgan Stanley, CitiGroup, and Bank of America.
London newspaper ‚Daily News‚ says that CitiGroup bankers, who bent the economy, are to share the sum of 4 billion pounds in bonuses, a sum 20% higher compared against their last year incomes.
In the mid of the financial crisis Barclays also announced a 10% rise in its profits in the last half of 2009 without having received any sate financial assistance.
On the other hand, HSBC announced dramatic losses of 51% in the last half in 2009.
In the US, Obama administration has clarified that unemployment rate would start dropping in about a year from now since economic recovery should stabilize first.
US Treasury Secretary said that most economic analysts have predicted drop in unemployment rate in the second half in 2010. He, however, avoided to rule out rise in taxes, which was President Obama commitment.
News item: 25446