Wall Street firms will pledge not to use the recent $125bn cash infusion from the US government to pay bankers’ bonuses in an effort to defuse the mounting political furore over compensation at battered financial groups. Executives on the Street say that banks will pay bonuses from earnings and existing cash resources, like in previous years, and use the government capital for acquisitions and to replenish their depleted balance sheets.

This entry was posted by Stacy-Marie Ishmael on Tuesday, November 4th, 2008 at 4:14 and is filed under Capital markets. Edit this entry.