Wall Street bankers, publicly modest, eye fancy toys

[EV_Ares]

NEW YORK (Reuters) - Wall Street executives may face smaller bonuses and a public that still eyes them with suspicion, but that isn't stopping them from rediscovering their love of luxury cars, oceanfront homes and private jets.

A soaring stock market, a surge in merger deals and an uptick in hiring on Wall Street are allowing bankers to gradually return to the lavish lifestyles they enjoyed until the 2008 financial crisis came crashing down on their party.

Despite talk of bonus cuts, many businesses that cater to bankers' whims, such as the luxury car dealerships on Manhattan's Park Avenue, are teeming with Wall Street suits.

"Even if they are worried about bonuses, their egos are involved here," said one dealership manager, who said requests have been filing in for $225,000 crimson red Ferraris and $170,000 Audi R8 convertibles.

Wall Street paid out $20.3 billion in bonuses for 2009, and the numbers for 2010 are expected to be up modestly, according to various estimates, including one from New York's comptroller.

Hedge fund managers and investment bankers who advise on mergers should see some of the biggest increases, while bond traders can expect cuts of as much as 30 percent.

Financial industry employees will find out in January how big a bonus they'll get, and those who aren't sure if they'll get much seem to be waiting before they spend lavishly.

Nonetheless, there are enough Wall Street tycoons expecting big paydays to feed luxury spending.

wiss-made Hublot watches, which cost 6,500 euros ($8,500) on average, are still regarded as success symbols and remain popular in London's City and on Wall Street. Chief Executive Jean-Claude Biver of Hublot, part of LVMH, told Reuters that December would be a record month.

"They still want their toys," Luxury Institute CEO Milton Pedraza said of bankers.

Link to article @ http://finance.yahoo.com/news/Wall-Street-bankers-publicly-rb-3409482030.html?x=0

[madrchsod]

1. eat the rich.....

[roguevalley]

10. boil them when you do. rancid fat will kill you. these people

are marching into the arms of satan. may they get hugged to death.

[dkf]

2. Why cant we simply create a separate bracket for bonuses?

They should be discouraged anyway in favor of salaries.

[Statistical]

3. Why?

$50 mil salary vs $10 mil salary & $40 mil bonus. Why should one be taxed less than the other one.

Why should a $50K worker who gets a $5K bonus because the company had an amazing year pay more in taxes than someone who just makes $60K no matter how good or bad the year was.

Treat all income the same, restore clinton era brackets, raise the top bracket 2% more, then add more brackets.

Current system taxes $400,000 income that same as $4 mil, $40 mil, $400 mil, or $4 billion.
Throw in a new bracket at $1 mil, another one at $5 mil, another one at $20 mil.

[dkf]

4. Because bonuses encourage risky and questionable behavior that is why.

Either a person is worth it or they aren't. If they have a good year and are expected to do well then give them a raise.

[Statistical]

5. So you don't tip waitresses right?

I mean if they are worth more they will be paid more.

There is nothing wrong with bonus/tip/commission, if it is warranted. I would argue many of those bonuses aren't warranted but I would also argue that many of the base salaries aren't warranted either.

I got a bonus from my previous company each qtr. It was about 10% of my salary. If the company, team, individual hit key metrics for the qtr I got the bonus and how much was based on how much we exceeded it. I don't think it made me or my peers reckless or risky.

No more than a car salesman being paid a comission or waitress getting a good tip makes them risky.

Still even if you did take bonuses at a higher marginal rate. You honestly think they won't simply increase base salary to compensate? It would take the accounting team at Goldman all of 9 seconds to figure out how to minimize taxes under new system.

We need a simpler, more progressive tax system. If it were up to me I would eliminate virtually all itemized deductions, exemptions and simply put a $50K flat exemption on income. If you make $80K your taxable income is $30K. If you make $200K your taxable income is $50K. If you make $50 million your taxable income is $49.95 million.

[dkf]

6. I tip the same for everyone.

That is their defacto salary because their employers are too cheap to pay them decently.

[Statistical]

7. You don't reward performance?

i.e. the best service you have ever gotten and the worst barely adequate service warrant the same level of compensation?

Interesting.

[dkf]

8. Unless we leave a mess then I do tip extra.

And yes I generally tip 20%. Maybe more or less depending on how it rounds because I always leave cash.

Even if a person gives me bad service, they still need to live.

[sarcasmo]

9. 8500 on a watch would cover our expenses for 4 months, absurd.