Bank dilemma: How to pay employees

Bank stock prices remain at historical lows, and TARP restrictions prevent them from buying back shares. That one-two punch has left Citigroup, Morgan Stanley and probably a host of others short on shares they'll need to compensate employees, notes Dow Jones. 

Their only choices are to go to shareholders and seek approval to either issue more shares or use more of currently authorized shares. You have to wonder how this will go over. There is a chance that shareholders will say no. Meanwhile, Citigroup and Morgan Stanley are also looking at ways to get around possible bonus restrictions; boosting salaries is one option. 

For more:
- here's the Dow Jones article on stock authorizations via CNNMoney.com
- here's Reuters article on salary issues

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