Comments on: Should Bankers Get Bonuses This Year? http://allfinancialmatters.com/2008/11/12/should-bankers-get-bonuses-this-year/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: Albert Goss http://allfinancialmatters.com/2008/11/12/should-bankers-get-bonuses-this-year/comment-page-1/#comment-402112 Albert Goss Wed, 11 Feb 2009 19:29:02 +0000 http://allfinancialmatters.com/?p=2956#comment-402112 There should be no bailout for any of the corporate hogs, particularly the bankers and Wall; Street crooks. Those bastards got us into the present mess. Confiscate their wealth and give it to the rest of us. Put the lying, hypocritical, greedy copracephalites in prison where they belong. There should be no bailout for any of the corporate hogs, particularly the bankers and Wall; Street crooks. Those bastards got us into the present mess. Confiscate their wealth and give it to the rest of us. Put the lying, hypocritical, greedy copracephalites in prison where they belong.

]]> By: justice http://allfinancialmatters.com/2008/11/12/should-bankers-get-bonuses-this-year/comment-page-1/#comment-395337 justice Wed, 07 Jan 2009 00:14:18 +0000 http://allfinancialmatters.com/?p=2956#comment-395337 If none of them give bonuses then where would they go?? Poor buggers in their expensive homes and cars when so many are loosing their homes jobs due to their mistakes great stuff!! Why don't the ordinary workers who put in a hard days graft get the bonuses. If none of them give bonuses then where would they go?? Poor buggers in their expensive homes and cars when so many are loosing their homes jobs due to their mistakes great stuff!! Why don’t the ordinary workers who put in a hard days graft get the bonuses.

]]> By: Dan http://allfinancialmatters.com/2008/11/12/should-bankers-get-bonuses-this-year/comment-page-1/#comment-392601 Dan Fri, 26 Dec 2008 19:13:49 +0000 http://allfinancialmatters.com/?p=2956#comment-392601 Boo-Hoo, the big banker wet his pants and Uncle Sam changed him. Now he wants to be fed and burped. These guys do not have a corner on 70-80 hour work weeks. Try any guy on the street with two jobs. Try any health care worker with one job and just as much education as the Banker with the Boo-Boo. No performance - no bonus. No performance - no job. No excuses no crybaby. Your are the enemies of this country. Boo-Hoo, the big banker wet his pants and Uncle Sam changed him. Now he wants to be fed and burped. These guys do not have a corner on 70-80 hour work weeks. Try any guy on the street with two jobs. Try any health care worker with one job and just as much education as the Banker with the Boo-Boo. No performance – no bonus. No performance – no job. No excuses no crybaby. Your are the enemies of this country.

]]> By: V http://allfinancialmatters.com/2008/11/12/should-bankers-get-bonuses-this-year/comment-page-1/#comment-392300 V Thu, 25 Dec 2008 16:19:56 +0000 http://allfinancialmatters.com/?p=2956#comment-392300 Most of you seem to think all investment bankers make 7 figure bonuses. That is complete nonsense. Only top traders and high up bankers bring in that kind of money on a yearly basis. The rest of us, analysts and associates, bring in large amounts, but not nearly 7 figures. We work an average of 70 hours a week at a regional investment bank (like one headquartered in a smaller city) or sometimes upwards of 90 to 100 hours a week in big bank in NYC. Analysts can expect somewhere from 30-120K in bonus based on performance of their group with a base of 60-70 but the bonus money comes as one large check in january. This means the taxes are huge. That bonus money get's taxed at the highest bracket shrinking it substantially. Tack on New York state tax, cost of living expenses in NYC, sales tax in NYC, and everything inbetween and your left with a very moderate sum of money for the amount of hours and stress put into your job. Why do you think the stereotypical banker has no hair by 35, because of the amount of stress in the job, and the amount of egos that need to be stroked. If you think high finance is an easy job your out of your mind. The global financial markets are some of the most complex things in the world. Why do you think most traders have Phd's in physics from top institutions. It's not all buying and selling stocks on scottrade. It takes the strongest quantitative skills to be a trader or banker which is why most bankers come from ivy league schools. All markets have their cycles. High risk trading for increased profits started this mess in the CDO sector of trading. However, the government magnified this problem by bailing out bear stearns and trying to correct market failures that would've smoothed out themselves given time. Some of you think all bankers should be punished and thrown in a hole. What about those of us that had nothing to do with this. We were doing our jobs and had no idea any of this would happen. Were on the bottom or middle line, the bonus is what bankers live for. Who else would do a high stress, long hour job for average pay unless you had the possibility of hitting a large bonus at the end of the year? What about the people who bought homes they couldn't afford because they didn't have personal responsibility? I have friends that have lost their jobs when they weren't even apart of the group that caused the subprime mess. They can't find jobs because there are none out there. Isn't that punishment enough? Most of you seem to think all investment bankers make 7 figure bonuses. That is complete nonsense. Only top traders and high up bankers bring in that kind of money on a yearly basis. The rest of us, analysts and associates, bring in large amounts, but not nearly 7 figures. We work an average of 70 hours a week at a regional investment bank (like one headquartered in a smaller city) or sometimes upwards of 90 to 100 hours a week in big bank in NYC. Analysts can expect somewhere from 30-120K in bonus based on performance of their group with a base of 60-70 but the bonus money comes as one large check in january. This means the taxes are huge. That bonus money get’s taxed at the highest bracket shrinking it substantially. Tack on New York state tax, cost of living expenses in NYC, sales tax in NYC, and everything inbetween and your left with a very moderate sum of money for the amount of hours and stress put into your job. Why do you think the stereotypical banker has no hair by 35, because of the amount of stress in the job, and the amount of egos that need to be stroked. If you think high finance is an easy job your out of your mind. The global financial markets are some of the most complex things in the world. Why do you think most traders have Phd’s in physics from top institutions. It’s not all buying and selling stocks on scottrade. It takes the strongest quantitative skills to be a trader or banker which is why most bankers come from ivy league schools.

All markets have their cycles. High risk trading for increased profits started this mess in the CDO sector of trading. However, the government magnified this problem by bailing out bear stearns and trying to correct market failures that would’ve smoothed out themselves given time.

Some of you think all bankers should be punished and thrown in a hole. What about those of us that had nothing to do with this. We were doing our jobs and had no idea any of this would happen. Were on the bottom or middle line, the bonus is what bankers live for. Who else would do a high stress, long hour job for average pay unless you had the possibility of hitting a large bonus at the end of the year? What about the people who bought homes they couldn’t afford because they didn’t have personal responsibility? I have friends that have lost their jobs when they weren’t even apart of the group that caused the subprime mess. They can’t find jobs because there are none out there. Isn’t that punishment enough?

]]> By: harm http://allfinancialmatters.com/2008/11/12/should-bankers-get-bonuses-this-year/comment-page-1/#comment-378558 harm Fri, 14 Nov 2008 00:43:24 +0000 http://allfinancialmatters.com/?p=2956#comment-378558 No way. Not if they are getting bailout money. If you want to see what is going to happen to wildly overpaid execs, there are a few good scenes in "A Tale of Two Cities" or "The Scarlet Pimpernel". Chop chop. No way. Not if they are getting bailout
money. If you want to see what is going to
happen to wildly overpaid execs, there are a
few good scenes in “A Tale of Two Cities” or
“The Scarlet Pimpernel”. Chop chop.

]]> By: Ankit http://allfinancialmatters.com/2008/11/12/should-bankers-get-bonuses-this-year/comment-page-1/#comment-378471 Ankit Thu, 13 Nov 2008 12:39:14 +0000 http://allfinancialmatters.com/?p=2956#comment-378471 Humourous.Instead of asking should the bankers get bonuses,we should be asking where will the bonuses come from.The statements made my these banks cannot be considered creditable anymore after the fiascos which have been brought to light. We never know when morgan Stanley or for that matter even Goldman Sachs will bite the Dust. When lehman brothers which survived the world war collapsed like a pack of cards,god only knows what's in store Humourous.Instead of asking should the bankers get bonuses,we should be asking where will the bonuses come from.The statements made my these banks cannot be considered creditable anymore after the fiascos which have been brought to light.
We never know when morgan Stanley or for that matter even Goldman Sachs will bite the Dust.

When lehman brothers which survived the world war collapsed like a pack of cards,god only knows what’s in store

]]> By: Gerard http://allfinancialmatters.com/2008/11/12/should-bankers-get-bonuses-this-year/comment-page-1/#comment-378334 Gerard Wed, 12 Nov 2008 23:43:24 +0000 http://allfinancialmatters.com/?p=2956#comment-378334 Hmmm... I agree with BD's sentiments. As long as the company is still in shareholder control, it is up to the Board of Directors and shareholders to make a decision. On the other hand, it the bank is indeed receiving a 'bail-out' then using those monies to pay employee bonuses is unethical, to say the least. With regards to where the talent will go, I think you'll find a lot of smaller, boutique-style investment banks opening up over the next few years. Finally, being an investment banker myself, a small point of clarification. The term investment banker seems to be used in a very general sense these days. Unfortunately, with generalisations you tend to find that some of us get grouped with the 'talent' that created this mess. While I don't blame people for being angry at the banks, try and remember that most of the banking community had nothing to do with this and the 'bankers' and traders who dealt with mortgage backed securities comprise of a sub-section of the people working at investment banks Hmmm…
I agree with BD’s sentiments. As long as the company is still in shareholder control, it is up to the Board of Directors and shareholders to make a decision. On the other hand, it the bank is indeed receiving a ‘bail-out’ then using those monies to pay employee bonuses is unethical, to say the least.

With regards to where the talent will go, I think you’ll find a lot of smaller, boutique-style investment banks opening up over the next few years.

Finally, being an investment banker myself, a small point of clarification. The term investment banker seems to be used in a very general sense these days. Unfortunately, with generalisations you tend to find that some of us get grouped with the ‘talent’ that created this mess. While I don’t blame people for being angry at the banks, try and remember that most of the banking community had nothing to do with this and the ‘bankers’ and traders who dealt with mortgage backed securities comprise of a sub-section of the people working at investment banks

]]> By: Sam http://allfinancialmatters.com/2008/11/12/should-bankers-get-bonuses-this-year/comment-page-1/#comment-378326 Sam Wed, 12 Nov 2008 23:13:39 +0000 http://allfinancialmatters.com/?p=2956#comment-378326 I would like to add my voice to the chorus of commenters saying H*ll No! I would like to add my voice to the chorus of commenters saying H*ll No!

]]> By: Christopher http://allfinancialmatters.com/2008/11/12/should-bankers-get-bonuses-this-year/comment-page-1/#comment-378320 Christopher Wed, 12 Nov 2008 22:49:24 +0000 http://allfinancialmatters.com/?p=2956#comment-378320 Alright I re-read it and I see where it states they are worried they will lose their top talent. Wow maybe I should go into finance. It doesn't really seem that hard to be considered a 'Top Talent'. Interviewer: Yes we wanted to know what your experience was? Top Talent: Um, well I've lost billons of dollars over the last few months and years. I have also run my previous company into the ground and created a crappy econonmy in the US that is spreading to the global market for all to enjoy. Interview: Great that sounds like what we are looking for. I'm glad so and so didn't pay you your bonus so that you became available. When can you start. Alright I re-read it and I see where it states they are worried they will lose their top talent. Wow maybe I should go into finance. It doesn’t really seem that hard to be considered a ‘Top Talent’.

Interviewer: Yes we wanted to know what your experience was?

Top Talent: Um, well I’ve lost billons of dollars over the last few months and years. I have also run my previous company into the ground and created a crappy econonmy in the US that is spreading to the global market for all to enjoy.

Interview: Great that sounds like what we are looking for. I’m glad so and so didn’t pay you your bonus so that you became available. When can you start.

]]> By: Christopher http://allfinancialmatters.com/2008/11/12/should-bankers-get-bonuses-this-year/comment-page-1/#comment-378316 Christopher Wed, 12 Nov 2008 22:34:27 +0000 http://allfinancialmatters.com/?p=2956#comment-378316 Normally a bonus is paid due to performance...not just because you came to work. That is your salary. Maybe I miss read but I didn't see where anyone stated they were worried their 'Talent' would go elsewhere if they didn't pay. They don't seem to be too talented to me. Give me Billons of dollars and I guarantee you I can lose it all just like they did. That doesn't take any talent. I could do it while drinking heavley and sitting at home buying crap online. Let them leave, it doesn't seem like it would be a big loss to me. They could hire JLP. He could get it all turned around by the middle of next year!!! Normally a bonus is paid due to performance…not just because you came to work. That is your salary. Maybe I miss read but I didn’t see where anyone stated they were worried their ‘Talent’ would go elsewhere if they didn’t pay. They don’t seem to be too talented to me. Give me Billons of dollars and I guarantee you I can lose it all just like they did. That doesn’t take any talent. I could do it while drinking heavley and sitting at home buying crap online. Let them leave, it doesn’t seem like it would be a big loss to me.

They could hire JLP. He could get it all turned around by the middle of next year!!!

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