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With a $1.1B capital hole it needs to fill by the end of the year, Bank of America (BAC) may...

With a $1.1B capital hole it needs to fill by the end of the year, Bank of America (BAC) may make up the shortfall by paying some employee bonuses in stock instead of cash. Considering that shares are trading at a low, employees may not be averse to getting paid in stock that could significantly appreciate.
Comments (5)
  • Gaping hole in the ocean
    , contributor
    Comments (207) | Send Message
     
    I would demand stock certificates because they double as toilet paper.
    8 Nov 2010, 03:00 PM Reply Like
  • j_remington
    , contributor
    Comments (1343) | Send Message
     
    How about BAC pay employees in IOUs like CA?

     

    Shouldn't companies be outlawed from using stock as payment?
    8 Nov 2010, 03:00 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Now this is a scam in the making. Pay them in stock, then have their nternal HFT's drive the stock up with POMO money (yes, BAC is a primary dealer). When stock is ramped up enough by its own trading desks, the employees sell their shares and get the "bonus" they were promised.

     

    Just watch, juusst watch.
    8 Nov 2010, 03:13 PM Reply Like
  • Richard Mackenzie
    , contributor
    Comments (453) | Send Message
     
    Let's get this straight. They're trying to fill a capital "hole", and having a shortfall to the point that they can't afford to pay bonuses. That should be the end of the story right there, no? No! They will find some way to pay bonuses, no matter what. If only they would treat their customers, and the taxpayers, that well...
    8 Nov 2010, 03:14 PM Reply Like
  • Jasper M
    , contributor
    Comments (1652) | Send Message
     
    Oh, this is Choice – paying a bonus . . . in freakin' WALLpaper!

     

    "Thanks to all your hard effort, our firm . . . is still worthless. So we're paying out your bonuses in . . . Shares of worthlessness."

     

    That is one doomed bank. And, according to reggie Middleton's work, that means several others (counterparty issues).
    I'm with Mr. Mackenzie on this one. PRICEless!
    For once, the banksters are getting perfectly appropriate remuneration for their labors.
    Anybody note that we are in an age were a gadget maker is flush with cash, and a bank is strapped?
    8 Nov 2010, 03:36 PM Reply Like
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