He’s a bonus crybaby.
A former big-time Bear Stearns banker downsized when his firm went under has gone to court for his $2 million bonus in the first of what may become a wave of similar suits.
Gary Reback claims he helped pull in millions for the Wall Street firm.
Even as Bear was foundering around him, Reback insists, he and his colleagues, who traded the complex collateralized mortgage obligations that nearly brought down the financial system, brought in enough business in early 2008 to justify his hefty bonus.
Just months after public outrage erupted over sky-high Wall Street compensation packages, the Scarsdale man is making an unusual public push for his cash despite his firm’s collapse and the acceptance by JPMorgan Chase — which took over its remains — of $25 billion in federal bailout money.
At least two former Bear executives stiffed of their severance are expected to file lawsuits, said Reback’s lawyer, Jonathan Sack.
Reback is suing Bear Stearns and Chase in Manhattan Supreme Court for a $2 million bonus and $1.1 million in severance.
“After reviewing the complaint, we are confident that Mr. Reback is not owed any money,” JPMorgan spokesman Brian Marchiony said.
Since the financial meltdown, most bonus battles have been hashed out under the radar, in arbitration cases mostly handled by the Financial Industry Regulatory Authority, or FINRA. But sources say it’s a tough go for employees as firms tighten the purse strings.
With an annual salary of $250,000, Reback raked in multimillion-dollar bonuses for years, hitting a high of $4 million in 2007. That made him one of the 20 highest paid people at Bear Stearns that year, according to the lawsuit.
His bosses at Bear assured him that everything was fine — but Reback got the boot two months after the takeover, he says.
He negotiated with JPMorgan for months and accepted a severance deal in December — only to have the deal yanked off the table without explanation, he claims.
“Gary had nothing to do with losses,” Sack said. “He traded different products completely outside the subprime-mortgage mess. They offered him a severance and now they’re reneging — it’s shocking, bad faith behavior.”