Citi founder Reed slams Wall St. bonuses: report

Interim Chairman of the New York Stock Exchange John S. Reed reacts to a question during a press conference in New York, in this September 29, 2003 file photo. REUTERS/Shannon Stapleton

Interim Chairman of the New York Stock Exchange John S. Reed reacts to a question during a press conference in New York, in this September 29, 2003 file photo.

Credit: Reuters/Shannon Stapleton

NEW YORK | Sun Jan 10, 2010 4:16pm EST

NEW YORK (Reuters) - As Wall Street gears up for its much-anticipated bonus season, John S. Reed, a founder and former chairman and chief executive of Citigroup Inc, offered stern words in the New York Times about the expected large payouts.

Reed, who retired from Citigroup in 2000, told the paper that Wall Street would not fully regain the public's trust until banks scaled back bonuses for good.

"There is nothing I've seen that gives me the slightest feeling that these people have learned anything from the crisis," Reed told the paper. "They just don't get it. They are off in a different world."

Compensation at U.S. banks has been a hot-button issue since the government handed out billions of dollars in bailout money to shore up banks during the financial crisis. Several firms, including the nation's largest bank, Bank of America Corp, have repaid those funds, ending restrictions on top executives pay.

A Bank of America Corp spokesman said on Friday that it will likely pay some employees at its investment bank at levels significantly above last year, although there will be no record payouts.

(Reporting by Martinne Geller; Editing by Diane Craft)

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Comments (7)
fred5407 wrote:
I doubt the bonuses will stop until the system is broke again and then the Government will bail the same bankers out again. Our Congress just doesn’t get it as they can’t see anything but money in everything they do. Not much to look forward to, is there.

Jan 10, 2010 7:43pm EST  --  Report as abuse
biff wrote:
Let them take as much money as they want. We know where it is. When our leaders turn left, we will institute a 99% tax on rich thieves. Maybe it will take several rounds of confiscations. Since the rich, especially rich republicans, caused this situation we’re in, it is right to make them pay the bill. The wealth of this nation needs to be re-distributed from the top down to the middle and lower classes, through the U.S. Treasury, and the tax code, and whatever other means are necessary. :)

Jan 10, 2010 8:34pm EST  --  Report as abuse
BeholdersEye wrote:
Congress gets it dude, they are bought and paid for by them CEOs and board of directors and industry lobbyist.

Jan 10, 2010 8:50pm EST  --  Report as abuse
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