New Banking Rules Likely To Mean More Job Cuts, Less Pay
More in BUSINESS NEWS
back-up- Meet Goldman Sachs' Newest Managing Directors
- Geithner On Financial Regulatory Reform
- Free Job Postings Until 31.03.2010
- Bank Tells Staff To Knock Off Early To Make Babies
- 'Do I Seem Like A Guy Who Throws Chairs ?'
- Best Place To Work Update
- Office Humour - Warning, Some May Find This Offensive
- City Bankers Prepare For Disaster Scenario
- John Thain Defends Wall Street Bonuses
- Click Here To Register For Free News E-Mail Alerts
- Lazard Names New CEO
- Top Firm Told To Give Up Bonuses
- Government Accused Of Botching Major Bailout
- UBS Reveals Its Hand
- The Dash For Trash
- Too Big To Fail
- 'Sorry - But Christmas Is Cancelled'
- Regulator To Have Power To Tear Up Banker Pay Contracts
- IT Programmers Accused Of Being Madoff Accomplices
- Cityboy On Corporate Social Responsibility
- Top Firm To Unveil Turnaround Strategy
- The Obvious Candidate To Succeed Ken Lewis Is Ken Lewis
- Quit The UK To Avoid Higher Taxes - Poll Results
- Bankers Forced To Take Second Jobs To Make Ends Meet
- Goldman Kitten Payments Go A Stray
- More Compensation News
- Best Place To Work 2010 - Vote Now
- Banker Eye Test
- Goldman Sachs - View From The Top
- The Lloyd's Prayer
- Exec Claims Hedge Fund Boss Hired Hit Man To Kill Her
- $125m-A-Year Banker's Wife Says She Was Treated Like 'Mail-Order Bride'
- 'The Sell Out'
- 'Many Of You Have Seen Life Savings Vanish'
- Tough Times For Expenses - £5 For Lunch
- Tragic Banker Rehearsed Suicide Before Killing Himself
- Bear Stearns Fraud Case - The Verdict
- Even More Compensation News
- CEO Says That History Will Vindicate Him
- Traders Desperate To Get 'The Clap'
- Reservoir Gods
- Who Was Mr Angry During The Financial Crisis ?
- JPMorgan Chase Compensation Letter
- Regulator Warns - 'Yes, That Does Mean People Go To Jail'
- Brokers Complain Of Bailed-Out Banks Bullying Tactics
- Best Place To Work - Previous Winners
- Best Place To Work 2009 Results - The Top 100 Firms
- CEO Says He Could Top Himself & People Would Cheer
- Top Firm Hires 78-Yr-Old / Ex-Boss Says 'Sorry' For Citigroup
- Top Firm Said To Be At Loggerheads
Related Content
- Pay Czar's Wall St Compensation Cuts - What The Smart Money Says (23/10/2009)
- Stock Trading - Our Golden Rules (04/10/2009)
- No Pay Jose! (05/10/2009)
- Bankers Will Have The Last Laugh On Pay (03/11/2009)
- What A Way To Lose Your Job! (15/10/2009)
- Top Firm May Pay For 'Crap' & 'Vomit' (12/09/2009)
And this will probably mean that investment banks will shed yet more staff to rein in costs further, and reduce compensation. JPMorgan believes that Deutsche Bank's workforce would be among the worst affected, with 7% (or 1,350 staff) being axed. On average, the bank feels that firms' headcount will fall a further 3%.
JPMorgan also believes that BNP Paribas may need to reduce its cost-per employees (compensation pot) by 39%, while French rival Societe Generale could need to reduce its cost-per-employee by 18%, and warns of 'very low levels of compensation' in 2011.
In the meantime, Bloomberg reports that Commerzbank CEO Martin Blessing has called for a ban on guaranteed bonuses, with a focus on long-terms compensation programs. Cynics suggest that this is merely Blessing's way of levelling the playing field, after effecting imposing a ban on guaranteed bonuses at his own bank!
And Associated Press reports that Dutch banks have now all signed up to a new code of conduct for executives, which includes bonus caps, and links pay-outs to long-term performance.
Finally, Bloomberg reports that Citi analysts have said that UBS might not attract new client money into its wealth management businesses until 2011, after losing thousands of financial advisors (2,147 in the 18 months to June, with a further 678 expected to go in the second half of this year). The Swiss bank has now seen 5 consecutive quarters of client redemptions.
Please use the 'E-Mail' button immediately under the article title to send this item to a friend.
