If you believe the Bushtards on the cable news business reports, the economy is really humming. The stock market is at a record, baybee, and that translates to multimillion-dollar bonuses for the truly deserving CEOs:
NEW YORK (Reuters) -- Investment bank Morgan Stanley's CEO John Mack has been awarded a bonus worth about $40 million in stock and options for 2006, according to a regulatory filing Thursday.
However, Mack's compensation is likely to be topped by one or more of his rivals, according to a report published Friday by The Wall Street Journal.
The payout comes amid a boom time for investment banks, advising private equity firms flush with cash in their pursuit of acquisitions, raking in hedge fund fees and profiting from elevated levels of bond and stock trading.
The high profits are translating into multi-million dollar bonus awards for bankers - two studies released in November show that Wall Street bonuses should rise by double-digit percentages this year.
The question people often fail to ask is how the newfound wealth of the corporate state is being distributed:
Morgan Stanley cuts 170 jobs
Morgan Stanley has cut 170 positions at its recently acquired subprime mortgage unit, Saxon Capital Inc., as part of its reorganization of the business.
The New York investment bank is shutting down Saxon's business of lending directly to consumers to focus on lending through mortgage brokers and mortgage servicing, said Morgan Stanley spokesman Mark Lake.
The job cuts, which was first reported Wednesday by National Mortgage News on its Web site, accounted for about 14 percent of Saxon's work force.
If they aren't careful, this country could find itself in a middle of an unwanted Marxist revolution.