Bank of America will defer 2008 bonus payments for employees in its capital markets and investment banking units. Those slated to receive $50,000 or more, who usually get their bonuses in February, will be paid the first third of that sum in February 2010, with the remaining thirds paid in 2011 and then 2012, according to the Financial Times. This of course of going over like brick to the head.

Recall that Bank of America has decided to downsize its capital markets operations in favor of Merrill Lynch's. A lot of Bank of America bankers are to be let go. It's unclear how (or if) laid-off employees will get their full 2008 bonuses. This counts as double whammy. Of course their Merrill Lynch colleagues got their (bigger) bonuses thanks to John Thain's decision to accelerate payments, for which he's getting trashed in the media. 

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- here's the article

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