Wall Streeters defend bonuses as part of culture

 Executives at the Reuters Global Finance Summit rallied to the defense of the industry's resurgent bonus practices, arguing that there was no clear link between generous compensation and last year's market meltdown.

Bonuses have long been a part of Wall Street's culture, dating back to a time when partnerships dominated the industry. Recent reports indicating that near-record amounts will be paid out just months after many firms benefited from government bailout moves have raised public outrage.

But executives at the summit in New York have argued that the anger is misplaced.

"The focus on bonuses as the cause of risk-taking is just wrong," former Merrill Lynch chief executive John Thain told the summit.

Wall Street bankers and traders historically have looked to their bonuses as a major piece of the yearly income. For high-ranking executives, bonuses can be more than $1 million.

A year removed from the heart of the financial crisis, Wall Street's dominant banks are preparing to give massive year-end paydays to their employees.

Goldman Sachs Group Inc, for example, has already has set aside nearly $17 billion to pay its people at the end of the year. Goldman earlier this year repaid $10 billion it borrowed from taxpayers during last year's bailout.

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