Spoiled Wall Street Bankers Get Bonus Cut

We’re told “Wall Street’s Bankers Brace for Big Pay Cuts” while “Bosses Don’t Want Whining.” That’s cause the ne’er do wells may have had something to do with revenue being down 40% at their investment banks?

So, a 30% drop in annual bonus is justified? Poor babies! It could be worse, no? Not only are this year’s fees from giving losing advice on deals, stock offerings and bond sales tanking, says data from Dealogic, but it translates into a loss of $50 BILLION in industry revenue. The WSJ notes “that is the biggest year-over-year dollar decline on record, worse even than in the financial crisis.”

As might be expected, then, sources at JPMorgan Chase, Bank of America, Citigroup and Jefferies Financial Group say bonus pools will be cut by some 30% while at Goldman Sachs the cuts “are expected to run up to about 40%.” Yet, 70 or 60% of the massive bonuses handed out during a 2021 “bonanza” year is still enough to keep the significant other in a mink or Rolls. Nevertheless, the WSJ cites a “survey of more than 1,000 financial-company employees on the professional networking site Fishbowl” suggests “nearly 72% said they would consider quitting their job at a bank if their bonus is cut.” Yet, if ALL the firms cut the bonuses, exactly what would have been accomplished?

Davd Soul