Citigroup Fattens Salaries

Citigroup is determined, it seems, to remain the most hated bank in America: Bloomberg reports that “Citigroup Inc., the U.S. bank that got $45 billion of government funds, will raise base salaries by as much as 50 percent to help compensate for a reduction in annual bonuses.” The biggest raises will go to investment bankers and traders, while workers in consumer banking, credit cards, and risk management will see smaller increases. Banks like Morgan Stanley and UBS AG have already boosted base salaries to compensate employees for lost bonuses. Compensation and benefits were Citigroup’s biggest operating expense last year.