Bonuses on Wall Street top $20bn

BONUSES on Wall Street soared 17 per cent to more than $20 billion (£13bn) last year despite the US taxpayer bail-out of the financial system, it was revealed yesterday.

Remuneration packages at the largest investment banks grew even further and profits could collectively surpass an "unprecedented" $55bn, New York state comptroller Thomas DiNapoli said. Analysts pointed out this would be nearly triple Wall Street's previous record increase.

DiNapoli said the rate of growth was boosted in part by the record losses in 2008 of nearly $43bn.

"Wall Street is vital to New York's economy, and the dollars generated by the industry help the state's bottom line," he said, "but for most Americans, these huge bonuses are a bitter pill and hard to comprehend. Taxpayers bailed them out, and now they're back making money while many New York families are still struggling to make ends meet."