Skip to main content

WS cut down bonuses.

 

Wall Street is bracing for colossal bonus cuts after a dismal year in which deal-making has dried up, and investment banking revenues dropped by half.

Most banks have not made final decisions, but it is already clear that last year’s bumper payouts will not be repeated. At that time, the big banks were flush with profits from record deal-making and struggling to retain staff.

They said that the pools for fixed income, commodities and currency traders are likely to be closer to flat because those divisions had much better years than traditional investment banking.

However, Goldman Sachs recently announced plans to merge its investment banking and trading divisions and is contemplating firmwide bonus pool cuts. The exact numbers are not set, but Goldman’s leadership opened discussions by warning traders of «small» decreases, one person familiar with the talks said.

Morgan Stanley still needs to set bonus pool numbers, but its net revenue is down 10 per cent yearly.

JPMorgan, Bank of America, Citi, Goldman, Jefferies and Morgan Stanley declined to comment.

Cuts at the big banks are likely to be mirrored across the industry.

In October, New York state comptroller Thomas DiNapoli warned that this year’s bonuses would fall 22 per cent or more from last year’s huge payouts.

www.sba.tax

Labels:

Comments

  1. Craig3 December 2022 at 18:40

    Well, it was clear that if things are down, then bonuses would be down as well. It depends on each bank's results how low those will be. Last year things were great and everyone shared in on it. Now everyone needs to deal with this bad year as well.

    ReplyDelete

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more

Tariffs on UK electric cars.

  The European Commission has confirmed that it will continue with its plan to impose tariffs on electric cars exported between the UK and EU starting next year. This is due to the "rules of origin" requirement that mandates EVs traded across the English Channel to have 60% of their battery and 45% of their parts sourced from the EU or UK or face a 10% tariff. A senior Commission official, Richard Szostak, recently informed parliamentarians from the UK and EU that the bloc's battery investment has significantly declined, making the tariffs necessary to encourage domestic production. In 2022, the EU's share of global investment in battery production shrank from 41% to only 2% after the US offered substantial subsidies through its Inflation Reduction Act. Starting in 2024, car manufacturers in the UK will need to have 22% of their sales come from zero-emission vehicles, which means they may need to import EVs from the continent to meet this requirement. If EU carmakers ...
Post a Comment
Read more