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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: JEB who wrote (213292)	12/29/2001 1:54:53 PM
From: JEB	Read Replies (1) \| Respond to of 769669

J.P. Morgan Chase expected to cut bonuses 20 percent FRIDAY, DECEMBER 28, 2001 2:36 PM - Reuters U.S. Company News J.P. Morgan Chase expected to cut bonuses 20 percent 12/28/2001 2:36:00 PM NEW YORK, Dec 28 (Reuters) - J.P. Morgan Chase & Co. Inc. (JPM) is expected to cut year-end bonuses for its investment bankers, traders and money managers by an average of 20 percent in order to curb costs in a struggling market, a source familiar with the matter said on Friday. Bankers in the worst-performing areas at the No. 2 U.S. bank holding company could see a 40 percent or more drop in bonuses, while employees in the derivatives and bonds businesses likely will get the biggest payouts, the source said. The bank's equities, technology mergers and acquisitions, and asset management operations all had slower years in 2001. J.P. Morgan Chase, which has already eliminated about 7,000 jobs to lower expenses, declined to comment. The Financial Times first reported the expected drop in bonuses on Friday. The bank will tell its employees of their bonuses in January. Most other Wall Street firms also have slashed bonuses and fired thousands of staff as they wrestle with sharp slumps in revenues. Bonuses, which on Wall Street often reach tens of thousands of dollars or more, are expected to fall anywhere from 30 percent to 70 percent this year, according to estimates from industry trade group the Securities Industry Association. The fragile U.S. economy, the collapse of Internet firms, and a slump in consumer spending and travel after the deadly Sept. 11 attacks hit stock markets and caused companies to yank plans to sell stock to the public. This dented banks' and brokers' trading, investment banking and investment profits. J.P. Morgan also faces possible losses from its roughly $1.5 billion exposure to bankrupt energy trader Enron Corp. (ENE) . The bank, along with Citigroup Inc. (C) , is one of Enron's leading creditors. Its net profits tumbled 68 percent in the third quarter to $449 million, and bank executives said there was no reason to think fourth-quarter results would top the third quarter's. bigcharts.marketwatch.com{3AEF4D28-A756-4AB1-A66E-7160FB52856D}&newsid=794969104&symb=ENE&sid=1803