Citigroup plans pay raises

Goldman Sachs (GS) is rumored to be raising bonuses. Morgan Stanley (MS) set higher base pay for its top executives. Despite the disapproval of members of the Administration and Congress, compensation on Wall Street is on its way back up.

Industry sources say that Citigroup (C) is about to raise the salaries of key employees by 50 percent. The move is meant to partially offset bonus caps that the government has insisted on at financial firms getting federal aid.