Your sale has been deferred again

Just heard from a client that Morgan Stanley.is deferring, again 100% of all bonuses over $50,000 (which means for all employees other than janitors). Not all banks suffered like Morgan last year, of course, but this a pool of potential Greenwich buyers who presumably have just stepped out of the arena, for now.

25 Comments

Filed under Uncategorized

25 responses to “Your sale has been deferred again

  1. armonk

    What would you rather have cash or be an unsecured creditor of Morgan Stanley? Moodys baa1 with negative outlook.

  2. Publius

    Mr. Fountain,

    I think you will have to suck it up and start selling rela estate in….. Stamford….

  3. burningmadolf

    Don’t forget the ones that will be laid off soon.

  4. InfoDiva

    Or stepped into the arena, if they can no longer afford that family-sized coop they were considering or NYC private school for the kiddies.

  5. Anonymous

    Wall Street….the old Wall Street will continue to contract….and, yes may affect the housing market in the NYC area, which besides Fairfield County, includes NYC, NJ and LI and Westchester County. Several thoughts with anecdotal evidence to back this up: 1) the price of entry to the Greenwich housing market is high, but with low taxes. the price of entry to Westchester and NJ and LI is lower with high taxes that have to be paid every year. The households that are struggling are those that have to cover that tax nut every year………..which is not Greenwich relatively speaking. 2) The new Wall Street is making money….small to medium start up hedge funds or money managers….and real money…and still could be players in the Greenwich market; and 3) the technology industry has taken over lower midtown Manhattan (price per square ft is the highest in the city) and those people are making enough money to play in the Greenwich real estate market……..

    • InfoDiva

      If you have a family, buying a Greenwich house under $2 million is MUCH more than anything in NYC. The mortgage and taxes on a perfectly decent house will be about $6K/month. That won’t even rent a classic six in a decent building in Manhattan. In Greenwich, there would be a bedroom for every kid and free school. And nobody turns up his nose when you say you live in Greenwich– the place still lots of snob appeal for those who care.

      I’d say it’s a great deal for a young family, and Greenwich realtors should be out there hawking their wares to those sad bonus-deferred folks.

      • GreenITCH

        I agree on your NYC analogy and know several families in that situation …Brooklyn is not much better in terms of value these days … However , What is that saying .. you get wht you pay for ? have you seen those ” free schools ” in Greenwich , very average education marks w/i the state and the buildings are old and decrepit …most friends that i know passing on Greenwich for towns with better facilities like Darien , NC and Westport ..and yeah a tad longer on the commute but when they walk into their larger , newer house they are not unhappy and glad to do the extra time on the train

        • Anonymous

          This is true about Darien, etc. Also even if you want to do private schools in Greenwich it is pretty hard to get in unless you enter at Kindergarten.

  6. AndyD

    Clearly bad news but remember that bonuses paid over the last 1-3 years continue to vest each year so there will still be a big cash payout this year for all the MS folks, it just won’t be for 2012. Also keep in mind, the 2011 bonuses were probably set around $15 and MS stock now at $20. Citi even better, stock bonuses paid for 2011 around $27 now worth $42- thats real cash when it vests.

  7. Anonymous

    Don’t shed too many tears. The employees that are ” receiving” this years deferred bonus will be realizing real cash from previous deferrals. The real impact is that unless you are fired, some day you will lose effectively one year of comp from MS (before all of this nonsense you would have only lost half). So you work another year. Not a big deal.

  8. Anonymous

    What is the deal with 435 Lake??

    • Much nicer with recent addition and renovations and new price of $8.5 million instead of $12+. Will this do the trick? It’s a gorgeous home, with great land, good location. Comparing it to current inventory I’m not convinced that its right price has been reached yet but I could see someone paying this much if she absolutely had to have it. I do wish the owners had replaced the windows on the second floor – it’s drafty up there, but that’s a quibble, sort of.

  9. Dollar Bill

    Horrors! No bonuses for our poor starving bankster friends? What is this world coming to? Could it be that the invisible hand of the free market is teaching our hard working Masters of the Universe a lesson in economics? Were you hoping CF for another bankster bailout, all in the hopes that said bonuses would line your pocket? Say it ain’t so!

    • DB, I realize you live in an alternative universe, but do you ever visit earth? Small government advocates opposed the bank bailouts – your friend Obama bailed them out, hired them and placed them in charge of our government. Are you aware of that? Do you think Obama is a Tea Party member? Do you think at all?

  10. FlyAngler

    Feels like 1992 to me, just before Wall Street comp recovered from the post-1987 crash levels and the Greenwich market started a 15 year streak. Not suggesting something similar is coming but those in the market then may recall that things went from buyers’ market in Summer 1993 to sellers’ market a year later. I know, I bought into town in August ’93.

  11. Artie

    A) I hear that is only if you make over $350,000, so the janitorial staff s/b ok. B) lets not forget that 2009 wasn’t a great year – those 3 year old bonuses weren’t too good…

    • The only thing that matters is....

      bonuses paid in 3 years ago in 2010 for 2009 calendar year were actually VERY good to make up for the abomination the year before

  12. Dollar Bill

    Bank bailouts, if you recall, began under Bush and Hank Paulson, and unfortunately continued under Obama. Long past time to rein in Wall Street, and the Big Money Boyz. Stop kowtowing to these vandals, and our economy in the long run will be the better for it. Also, start throwing some of them in jail. And, remember, the vast majority of these crooks were all in for the Mittster. You do remember him? You were all in for him too.

    • Publius

      DB,

      Greed and stupidity are not crimes that is why the government has not been able to bring charges. If greed and stupidity were crimes just about everyone inside the Beltway would be under indictment.

      The financial industry was and is the most heavily regulated industry in this country. There were plenty of laws and rules. It was the government regulators that missed the boat. The Dodd-Frank bill was a cover for all the govenrment incompetents.

      This last go around was fueled by the obsession of home ownership coupled with significant decline in underwriting standards. This was a bi-partisan issue particularly on Fannie and Freddie but when 43 tried to rein in the GSE’s in 2005 he got shot down. Two of the bigger hooligans in this mess ironically was Messrs Dodd and Frank. The irony could not be thicker. Current administration is trying to “fix” the housing market by doing the same things that got us into trouble in the first place while holding the banks hostage to a never ending series of law suits to extract maximium dollars to show we are “getting tough”. Nothing really has changed other than the immediate panic of 2008-2009 has subsided. Watch the FHA, it’s about to blow up. Thye did the same thing as Fannie and Freddie and they stepped after to the plate AFTER Fannie and Freddie went into conservatorship. residential real estate as any thoughful person can attest is not productive capital, one of the reasons among many that we are facing weak economic growth… all the money poured into non productive assets and then hyper leveraged.

      Keep in mind as well those out of control Wall Street folks are the ones who are underwriting all the government debt that continues to spew 4 days a week with no end in sight. The only respite to this is the idiot Federal Reserve that buys this stuff and then waves a wand to pay for it