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CEO Wife: Why Bankers Need Fat Bonuses

By    |   Monday, 03 Aug 2009 03:00 PM

The New York City economy has long thrived on bonuses paid to Wall Street bankers so those perks should continue, said Liz Peek, journalist and wife of Jeff Peek, CEO of the troubled CIT lending institution.

About a fifth of New York State tax revenues and 12 percent of the city's revenues come from the securities industry, Peek said.

And the $30 billion paid in bonuses in 2006 created revenue for New York, New Jersey and Connecticut, Peek added in a column she wrote for the Huffington Post.

“Not only are banking profits essential to the well being of New York, those pesky bonuses play a vital role as well,” Peek said.

“Last year's drop in banking bonuses cost New York State almost $1 billion in tax revenues, while the city saw $275 million go up in smoke.”

The debate over paying executives at bailed out banks continues to grab headlines.

New York Attorney General Andrew Cuomo has released a report finding that bonuses paid to executives at nine banks receiving aid exceeded net income at some banks.

"There is no clear rhyme or reason to the way banks compensate and reward their employees," said the report by Cuomo, according to Reuters.

The government has loaned small-business lender CIT $3 billion to avoid collapsing.

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The New York City economy has long thrived on bonuses paid to Wall Street bankers so those perks should continue, said Liz Peek, journalist and wife of Jeff Peek, CEO of the troubled CIT lending institution.About a fifth of New York State tax revenues and 12 percent of the...
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Monday, 03 Aug 2009 03:00 PM
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