This week former FBI director Louis Freeh told Congress about progress being made in his effort to untangle the MF Global Holdings bankruptcy, famously known for the now-reported $1.6 billion in accidentally misplaced funds. He told skeptical Senate Banking Committee members that MF Global executives would not receive bonuses.
Wall Street rumors had been that Freeh was going to ask for bonuses for the executives running MF Global. The idea of financial traders not receiving bonuses, whether or not they bankrupted their company, was so unbelievable Senators on the committee repeatedly asked Freeh if they had heard correctly.
This story of financial executives not receiving bonuses made news around the world. The New York Times, Reuters, Business Week, Financial Times and Bloomberg were among many to feature this story prominently, confirming the news value when the leaders of a failed company with nearly record-breaking fraud are denied their bonuses. The story was also covered at every end of the consumer spectrum, from the New York Post to the Drovers Cattle Network, linked below.
Bonus Watch is a project of the European Trade Union Confederation. They have started tracking the phenomenon of bonus entitlement, evidenced by their image above.