New York Times: Wall Street bonuses of up to $60 million help luxury markets
Sunday December 24, 2006
A story slated for page one of tomorrow's New York Times reports on this year's end-of-year bonuses on Wall Street, some individual payouts exceeding $60 million, and how they are helping to spur purchases in luxury markets.
Jenny Anderson, a reporter for the Times, reports on marketing efforts to Wall Street executives, including thousand dollar discounts on private airplane rentals. High-end firms are deluged with customers and cannot meet the market needs for products such as a $250,000 Ferrari. Some younger executives are reported to be purchasing apartments for $2 to $3 million.
Excerpts from tomorrow's article follow.
In recent weeks, immense riches have been rained upon the top bankers and traders. After a year of record profits, investment houses like Goldman Sachs, Lehman Brothers and Morgan Stanley are awarding bonuses as high as $60 million. And a select group of hedge fund managers and private equity executives may be taking home even more.
That is serious money. And the serious luxury goods markets are feeling the impact.
Miller Motorcars, in Greenwich, Conn., is fielding more requests for the $250,000 Ferrari 599 GTB Fiorano than it can possibly fill. One real estate broker laments a dearth of listings for two clients trying to spend $20 million on Manhattan properties. Financiers already comfortably settled in multimillion-dollar apartments and town houses are buying $5 million apartments for their children. Vacation homes, usually shopped in the spring, are now hot this winter, including private resorts like the Yellowstone Club in Montana near Yellowstone National Park.
FULL TIMES ARTICLE AT THIS LINK