Sub-prime crisis hits US bonuses

Despite falling bonuses, the average payout was still $180,000

Wall Street bonuses fell by almost 5% in 2007, official figures suggest, as financial firms tightened their belts amid the sub-prime mortgage crisis.

Despite the woes, bonuses totalling $33.2bn ($16.8bn) were awarded, the New York state comptroller said.

The average bonus dipped by 4.7% to $180,420 (£91,620) - according to figures compiled from the seven largest investment banks in New York.

Financial firms have written off about $100bn as a result of the crisis.

Of the major firms based in New York, only Goldman Sachs emerged relatively unscathed.

Except for the unfortunate few who've had the heave-ho for doing particularly stupid deals, it's actually been another golden year Robert Peston Business Editor Read Robert's blog

While the seven companies made profits of $39bn in the first half of 2007, they lost $28bn in the second half, state comptroller Thomas DiNapoli said.

But other data suggests that bankers aren't doing so badly despite the turmoil roiling financial markets.

According to research by Breaking Views, the online comment and analysis service, total compensation at the five largest US investment banks was just under $66bn last year, almost 9% higher than in the previous year.