Wall Street bonuses in Cuomo's sights

Cuomo's announcement, set for noon, comes as many of the nation's biggest banks and securities firms prepare this month to tell employees how much they will take home for 2009.

Banks and the government are bracing for an expected public outcry over bonuses, in light of the industry's role in the near collapse of the financial system and recession.

While some bonuses may this year contain a larger percentage of stock, to reduce any temptation to take outsized risk, large payouts are likely to provoke the ire of Congress, governance critics and shareholders.

This may be especially true for Goldman Sachs Group Inc, Bank of America Corp and other companies that accepted billions of dollars of federal bailout money, regardless of whether the money has been repaid.

Bonuses typically comprise the bulk of annual compensation for the most highly-paid bankers and traders, regularly reaching seven-figure and, occasionally, eight-figure sums.

It does seem really ridiculous, Christina Romer, chairwoman of the White House Council of Economic Advisers, said on CNN's State of the Union on Sunday.

You would certainly think the financial institutions that are now doing a bit better would have some sense, she went on. This big bonus season, of course it's going to offend the American people. It offends me.

Many banks, in contrast, say high payouts are necessary to keep top talent who might otherwise defect to rivals.

A congressional commission is expected on Wednesday to begin a hearing into causes of the financial crisis, including whether the desire for high pay drove outsized risk-taking.

Speakers are expected to include Bank of America Chief Executive Brian Moynihan, Goldman Chief Executive Lloyd Blankfein, JPMorgan Chase & Co Chief Executive Jamie Dimon, and Morgan Stanley Chairman John Mack.

Cuomo last year demanded that Bank of America and other banks disclose more details about their bonus payments.

(Reporting by Joan Gralla and Jonathan Stempel; Additional reporting by Christian Plumb; editing by John Wallace)