Because we all love and trust the banking industry to do the right thing, Citi is dealing with its scrutiny on bonuses for employees by cutting bonuses but increasing salaries by as much as 50%.
Look. We all need to compensate our valued employees well. Bonuses allow a company to share the good times when times are good. But how are times for Citi these days?
According to the Associated Press, “The New York-based bank has been among the hardest hit by the credit crisis and ongoing recession. Citi has reported six straight quarterly losses totaling nearly $30 billion. But, it would have posted a profit in the first quarter had it not been for dividend payments on preferred stock. In recent months, the bank has been reducing staff and selling assets in an attempt to streamline operations and return to profitability.”
In other words, Citi is bleeding money. They are unprofitable, but would be if they didn’t have to pay those nagging and annoying dividends on preferred stock.
I think its time to move all of our monies to credit unions. At least they only answer to those use them. Chasing phantom profits has never been their game. Instead, they aim to serve their members.
When it comes to figuring out how to reward those responsible for the economic meltdown, its true. “Citi Never Sleeps.” Personally, I think they could use a good nap.