|
CNBC'S MOST SHARED
- Investing in Tech Now
- Warren Buffett Tells CNBC Consumer Sales Remain "Very, Very Soft"
- Software Giants Rush to Cash In on Carbon Counting
- Preparing for Retirement
- What You'll See On My NASCAR Documentary Tonight
- Warren Buffett's Complete Sun Valley CNBC Interview - Transcript and Video
- Microsoft Plays a Game of Bing Pong
- How exactly does Twitter plan on making money?
- Playing by Different Rules
- Nikkei on Track to Break 6-Day Losing Streak
- GM CEO Vows Leaner and Better Company To Emerge
- GM CFO Young: No Positive Cash Flow Until 2009
- Geithner Seeks Clampdown on Derivatives Dealers
- Consumers' Mood Sours in Early July
- Less Demand for Fed's Emergency Backstops
- Claims Total Over 15,400 in Fraud by Madoff
- JPMorgan Asks Treasury to Auction Warrants
- UBS Can't Comply with US Request: Internal Memo
- Cisco Cutting up to 2,000 Jobs, Analyst Says
- Schork Oil Outlook: It’s Now or Never for the Bulls
- Social Networking's 'Naked' Truth
- Farrell: Let's Enjoy the Numbers for a Moment
- Call Of Shame - Vote Now
- Schmidt on Social Media, Ads and Hulu
- 15 Stocks to Consider
- Maximum Bob Goes Full Throttle For GM
- Najarian: Options Get Bullish on Cisco
- Sun Valley on Social Media
Text Size 
It's shaping up to be a blue bonus season for employees at Merrill Lynch.
Probable, continued massive writedowns at the investment bank are weighing on company profits, an effect that will be felt in the investment bank's traditional annual bonuses, CNBC has learned.
Fixed-income traders will be hit the hardest, with bonuses in that department likely to drop 40 percent on average and in some cases as much as 70 to 80 percent, sources.
The cutbacks stem primarily from additional subprime writedowns the firm is facing. Sources said the total could run an additional $3 billion to $6 billion -- which would be on top of the $8.4 billion in writedowns that Merrill already has seen.
Other departments at Merrill [MER
Loading...
()
] will get hit as well.
In the investment banking and equities areas, bonuses will be flat to 10 percent lower, while private client support will be down 5 to 10 percent.
Another reason for the decline in bonuses is because new CEO John Thain is insisting that financial pain be felt across the company, rather than just on the departments that have not met their numbers.
Sources say the move has drawn deep resentment in the company, possibly leading to lawsuits.
Print
Email
Data is a real-time snapshot *Data is delayed at least 15 minutes