2008 Bonuses Said Likely To Be WAY Down
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UK 'think-tank' the Centre for Economics and Business Research (CEBR) has come out and predicted that City firms will slash bonuses by up to 40% this year.
CEBR managing economist Dominic Walley said: 'Don't expect City bonuses to bounce back. There is a strong perception that bankers have been rewarded for getting it wrong. The credit crunch raises enormous questions about whether the City's bonus culture has been encouraging excessive risk taking. We expect bonus regimes to be scaled back over the coming years. Other London industries are also exposed to a world downturn and the property market is teetering. All of these factors suggest that London will feel less prosperous over the coming years than at any time since the early 1990s'.
In the meantime, Bloomberg reports that, according to the latest survey released by credit-checker Experian, 10,000 City jobs are likely to go in the next 3 years. On the same subject, JPMorgan says that it, too, is looking at staffing levels in the wake of the Bear deal and current market conditions. 1,500 JPMorgan staff are expected to lose their jobs by the time the Bear acquisition is bedded down.
The International Herald Tribune reports that AIG has posted a $7.81bn loss in the first-quarter, the worse loss in its 89-year history.
The Wall Street Journal reports that Bank of America's Level 3 assets (those that are hard to value) increased by 2.6% to almost $40bn as at the end of the first quarter.
Bloomberg reports that Allianz's first-quarter profits were down 65% at $1.8bn, after investment banking unit Dresdner Kleinwort took $1.3bn in asset writedowns in the period.
The Financial Times reports that Fortress Investments has posted a first-quarter loss of $69m.
Bloomberg reports that State Street may have to fork out $1bn in damages related to subprime-mortgage investments lawsuits brought by pension funds. The custodian has thus far only set aside $625m. As the news agency points out, $1bn would represent 80% of the firm's 2007 net-income.
Finally, Wachovia boss Ken Thompson has been stripped of his role of chairman of the company, although will continue as CEO. Thompson is under fire, and said that he is stepping down to focus on leading the bank through challenging times. Wachovia posted a loss in the first-quarter, its first for 7 years, on subprime lending-related writedowns and home loan defaults. Bloomberg quotes Jaime Peters, an analyst at Morningstar Inc., who said: 'Ken Thompson is in a very hot seat. People are starting to call for his head the same way they were calling for Chuck Prince's at Citigroup'.
In the meantime, Bloomberg reports that, according to the latest survey released by credit-checker Experian, 10,000 City jobs are likely to go in the next 3 years. On the same subject, JPMorgan says that it, too, is looking at staffing levels in the wake of the Bear deal and current market conditions. 1,500 JPMorgan staff are expected to lose their jobs by the time the Bear acquisition is bedded down.
The International Herald Tribune reports that AIG has posted a $7.81bn loss in the first-quarter, the worse loss in its 89-year history.
The Wall Street Journal reports that Bank of America's Level 3 assets (those that are hard to value) increased by 2.6% to almost $40bn as at the end of the first quarter.
Bloomberg reports that Allianz's first-quarter profits were down 65% at $1.8bn, after investment banking unit Dresdner Kleinwort took $1.3bn in asset writedowns in the period.
The Financial Times reports that Fortress Investments has posted a first-quarter loss of $69m.
Bloomberg reports that State Street may have to fork out $1bn in damages related to subprime-mortgage investments lawsuits brought by pension funds. The custodian has thus far only set aside $625m. As the news agency points out, $1bn would represent 80% of the firm's 2007 net-income.
Finally, Wachovia boss Ken Thompson has been stripped of his role of chairman of the company, although will continue as CEO. Thompson is under fire, and said that he is stepping down to focus on leading the bank through challenging times. Wachovia posted a loss in the first-quarter, its first for 7 years, on subprime lending-related writedowns and home loan defaults. Bloomberg quotes Jaime Peters, an analyst at Morningstar Inc., who said: 'Ken Thompson is in a very hot seat. People are starting to call for his head the same way they were calling for Chuck Prince's at Citigroup'.
