Wall Street expects up to 40% increase in bonuses


U.S. investment bankers are expected to earn larger bonuses at Wall Street firms such as Goldman Sachs Group Inc. GS, +0.15%, Bank of America Corp. BAC, +2.18%, Morgan Stanley C, +1.34%, JPMorgan Chase & Co. JPM, +0.99%, Citigroup Inc. C, +1.34% and Wells Fargo & Co. WFC, +2.13%, according to a report Friday by efinancialcareers.com. One JPMorgan Chase executive told the publication that the bank’s revenues on some business lines are up 60% to 80%, so most bankers expect a bonus increase of 30% to 40%. Bloomberg and the Financial Times have reported recently that bonuses at Goldman Sachs and JPMorgan could be up in the neighborhood of 40% to 50%. The big Wall Street banks typically announce internal bonuses along with their fourth-quarter results, which are due out in the next two weeks. Shares of Goldman Sachs are up 46.5% in the past 12 months, while JPMorgan Chase shares have risen by 31.7%. The two stocks are components of the Dow Jones Industrial Average, which has gained 19.2% in the past 12 months.

Source: Marketwatch

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