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Amid Layoffs Citi Can Renege Year-End Bonuses

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  • Description

    FBN's Charlie Gasparino on cutbacks in the financial sector.

  • Duration 4:00
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It's Christmas present to its employees more layoffs and as Charlie Gasparino -- discovered possibly no bonuses.

For those caught the cutbacks but is Citi alone in making the holiday season crummy one for its employees.

Charlie has more.

No which sources it on the Fox Business Network that Morgan Stanley and Goldman Sachs are seriously eyeing lay offs as well.

We don't know the timing of those -- the timing of Citi -- 111000 is pretty interest -- it was right before.

It was right before Christmas an argument to what that means exactly in a minute but what I what I should point out is that both official press officials -- -- Morgan and Goldman.

Are not denying it what they're telling us is that they could that they are looking at head count all the time and they being baster headcount based on the business conditions.

Which is a nice way of saying you're right on target you know we are we are planning cut back so we can't tell you how much.

They're cutting back -- we will tell you this Morgan and Goldman had been cutting back all year the fact that they are planning more cutbacks means that they think.

Did the Wall Street outlook for 2013.

Is pretty lousy and -- tea.

That's I think they think it's pretty lousy with out the fiscal cliff scenario if you have a fiscal -- there you can see a lot more now look at the Citigroup which is really interest me.

Look where they -- -- back to kind of back towards the end of the year.

We should point out that Wall Street executives employees not just you know the high flying want to make millions of dollars they get most of their compensation through the year end bonus they get a salary.

And they get a bonus and most of it.

Most of what they make every year is in the bonus the -- Citigroup did these cuts from what I understand I'm getting this from Citigroup employees -- talked on the Fox Business Network.

They can essentially -- big.

On year end bonuses to anybody that's been court in this cutback that's basically out of a job out of Intel based on when I hear there will lay offs yes they've got to lay -- today.

There's going to be some lives -- to 2013 when you generally or towards -- when you get your bonus and those so those people might get their bonus but anybody that gets.

Gets the gets whacked.

Before the official bonus check is handed to you does not get that bonus.

My view that's -- pretty sleazy to me cannot say I know people are getting whacked so my Corbett.

It to his employees you know obviously not exactly a nice Christmas present so -- -- Charlie the timing and this is so that Citi.

Camp yes paying those bonuses yes director yes and I I will say this it's not wholly -- I've heard this in the past.

But I will tell you this is pretty nasty -- -- -- they waited till after the election.

They did it right before Christmas.

And you know what's scary about this is I hear you know they're they're set days Citigroup is not tonight decision we should point that we can we -- despite of but I hear a lot of people like they're telling us there -- there will be some cutbacks in 2013 so presumably those people would get their checks -- maybe get get whacked out.

That the people now are not getting -- -- -- think about it they work the whole year.

OK so -- anymore weight work -- last month right you should do you think you pro rate the bonus.

Eleven months -- 1111.

Wells of that you get but they're not.

Doing that average person at home they would think what you're getting laid -- that's because your job you know that you didn't do we should ever you didn't you know your group has not performing -- not produce a profit so would make sense that you read and a bonus -- but think about it the average -- home doesn't work.

-- some of them some of -- work on Wall Street.

And if you make most -- compensation.

Based on -- -- work and you -- -- and people in your department are getting -- just you know getting bonuses.

You would think he would get.

You know you get a piece of that they should give something that's what I I believe anyway I could just tell you that inside Citigroup right now.

Never quite may never really happy place you know the -- bailed out bank in world just need to make the point.

Okay here's a here's a good point why Citigroup even in existence they wouldn't have been wasn't it wasn't for the through the the federal bailouts but they are.

And they are marginally profitable now but they are not getting bonuses and they are some really meant really angry people there the bonuses themselves and say anything to get excited about aren't they coming down -- credit better than nothing.

Her -- but I'll probably ask -- -- thanks so much.

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