JP Morgan's Bonuses

This is an interesting essay from the Truth In Options blog. It raises issues of stealth bonuses to the JP Morgan executives and an interesting coincidence in stock price and option grants.

J.P. Morgan's Abusive Executive Bonuses

As readers will recall, J.P. Morgan received the first large bail-out from the New York FED of $55 Billion, guaranteed by Bear Stearns' worthless assets, to prop up its own liquidity position and buy Bear Stearns stock.

J.P. Morgan also recently received another $25 Billion in TARP payments from the Treasury.

This article is about how J.P. Morgan's executives , instead of receiving easy to detect cash bonuses, received very large bonuses in the form of Stock Appreciation Rights (SARs) and Restricted Stock Units. These equity compensation securities are not easy to understand or value by other than experts in the field....

Read the rest of this here: J.P. Morgan's Abusive Executive Bonuses

SP Futures Hourly Chart at Market Close

The Street wants to bring IPOs to market next week so hide your women, children and small pets.

This can either be the top of a trading range, or the neckline of an inverse H&S bottom with a significant upside potential.

The markets will be looking for news on the stimulus package, but even more importantly, on a plan for the banks. There is significant disagreement in the Obama circles with regard to the banking bailout part two. Larry Sommers wants a 'bad bank' and Tim Geithner is promoting 'guarantees' but the crux of the matter is the valuation of the assets.

We are now at about day 20 in the Obama Administration, and there is a decided lack of serious reform backing up the rhetoric.

US Dollar Weekly Chart with Commitments of Traders