The Deepest Job Cuts At Major Financials

Just wait until the uproar in early 2010 about the bonuses for 2009 - although they will be lower in aggregate given all the layoffs, the per employee bonuses are so far projected to be up sharply from 2008.

hmm - don't think so

Don't think so either.

Why do you think all these banks want to return the TARP money ASAP. So that they are not questioned when they pay out bonuses for this year.

They could be higher at certain firms, sure, based on YTD results.

assuming they are sustained.

Trust me guys - anyone in a capital markets seat is doing extremely well so far this year. Still half the year left, but bid/asks have been wide and volatility was way up - perfect for making money. Investment banking still slow, but both debt and equity capital markets activity is very strong. Take a look at reserves taken for comp in the first quarter - off to a good start.

Flow capital markets, not structured.

HMM... if I was Obama, I wouldn't make the same mistake twice w/ crazy compensation even if every $ is paid back from TARP, no? It seems the height of arrogance to say to a heart surgeon during a heart attack, I'll do anything you want me to if you save me and 6 months later when the patient is doing well and the surgeon says to go exercise, the patient turns around and kicks said surgeon in the nutz...

Can I have another!

This is what Obama is doing about compensation. There is no limits on the compensation here.

http://www.abcnews.go.com/Politics/TheNote/story?id=7815620&page=1

HMM, depends on what the firm wants to pay. You could be making a lot and your comp gets locked up in deferred payment. At my shop they nulled all contracts for 09, increased equity portions, with clawbacks, and have a lucky-you've-gotta-seat attitude. Granted, my place sux tho.

There is no way Bamanator is going to allow the banks to pay out significant bonuses - anyone who thinks otherwise works at one of said banks and is delusional as a result. He just appointed a freaking compensation czar! What industry do you think the czar is going to focus on as his first target? I'm going to make a crazy guess and throw out financial services - I know, I know, it's a stretch but...

with so many out of work few will be well paid, regardless of production---there are hordes of capable, laid-off wall streeters--and they are lined up to take the jobs of any who are disappointed over shitty comp--thus comp will be shitty--that's how it works--

Is anyone reading the papers?
Get money for free, collect fees plus.
Is this not the plan? Banks are making $$$ with tax payer 'free' money injected by DC.
Imagine if someone came to your office with a tractor trailer packed with high denomination dinero and said, want to use this for free?
Profits up, #of bankers down, bonuses up (for those who survived).
Control bonus??? that noise for the news to calm the ranks of the disenfranchised.
They will ultimatly tell you that the bonuses must be paid in order to maintain the talent pool.
Look, Gietner was the NY fed. All this BS happened on his watch!!!
His punishment for his sleepy oversight of our financial system?
A promotion!!!!(pompusgietnerdickhead!)

pompusgietnerdickhead....it's one word...look it up

"Why do you think all these banks want to return the TARP money ASAP. So that they are not questioned when they pay out bonuses for this year."

Of course, flip it the other way, in order to pay TARP, they have to get the money somehow.

So, I wouldn't be surprised if, in order to get some big $$$ top people, they completely screw a whole lot of small/middle people.

You can get the "ok" from the government all you want (and deal with the public backlash)... but you still have to GET THE MONEY first. You don't think lenders and shareholders are going to be watching this one carefully?

falco, i do believe i'll adopt that phrase/word. hope you don't mind.

10022, why do you think the market pumped so beautifully up? so that the banks could sell shares at favorable terms. why do you think GS and MS today said the market was at it's limits, quite possibly overbought?

i don't quite know what to think. it seemed clear to me that this last year's bonus was paid for, at least in part, by temporary or not so temporary taxpayer money. the profits weren't there. now some profits are there, almost entirely provided by the Fed and the Treasury, but we'll see what results occur in the second half, which i think will underperform estimates significantly. i think they are running out of ammo, and just want to get healthcare through so the people don't f'ng revolt.

"10022, why do you think the market pumped so beautifully up? so that the banks could sell shares at favorable terms. why do you think GS and MS today said the market was at it's limits, quite possibly overbought? "

I don't disagree with the sentiment...

"the profits weren't there. now some profits are there, almost entirely provided by the Fed and the Treasury, but we'll see what results occur in the second half, which i think will underperform estimates significantly."

I'm missing you here. The preferred shares gave them cash, but where did that turn into profits? Only thing I saw that showed any profit was the shift in accounting schemes. I didn't see one set of financials that actually showed making money off the businesses.

One exception - regular banking... as tons of folks were putting in money in 0% accounts, and banks could lend it out. But thats now changing.

10022, we're talking the same thing. regular banking (and, you must also admit, selling debt, particularly government). refis will dry up soon, and losses from every credit arena will skyrocket. my comment about the gifts had to do with rates and the like, and the fact that keeping them solvent allowed them to pump.

and yes, some of the profits were manufactured. and some may go away if accounting standards change. but for now all the market cares about is its favorite profit figure.

> and, you must also admit, selling debt, particularly government

But they didn't profit on that... they paid it back and more. Maybe risk adjusted it was "cheap", but they didn't make money on it... they paid it back and more.

i'm talking about selling the debt of others, not their own debt.

I nearly fell of of my brontosaurus when I heard what the 2008 bonuses were going to be, given the state of the economy, so I won't be nearly as surprised (at least I hope not) when I hear about the 2009 bonuses.