Comments on: "Goldman Sachs ready to hand out £7bn salary and bonus package… after its £6bn bail-out"

By: Blissex

Blissex — Sat, 22 Nov 2008 20:16:00 +0000

Banks don’t hire the “best”, they hire the most impressively credentialed/most employable people, which is a very different concept (appearances/signaling vs. actual performance).

Even for front office positions, the profit centre ones. There are amusing stories about this in Taleb’s book on risk.

By: Charles

Charles — Tue, 04 Nov 2008 04:14:00 +0000

I am most happy for Mr Buffett. His investment in GS, as well as that of the US taxpayers, have been wisely spent on the retention of productive workers. Well done and long live Wall Street!

By: Mara

Mara — Mon, 03 Nov 2008 23:05:00 +0000

If the banks are “violating the law” in Frank’s words, then by all means, do what you would do to some other poor schmuck who runs afoul of the feds or IRS: freeze their accounts, start confiscating physical assets, and arrest the top tier of execs and board members. And start painful, probing IRS audits for the last 7 years for each of them. Do that and they’ll all be comin’ to Jesus…shit, they’d probably write an even bigger check just to make sure there are no “misunderstandings”.

By: Anonymous

Anonymous — Mon, 03 Nov 2008 20:57:00 +0000

If the lack of bonuses causes back office staff to leave for “industry”, that is what we want to happen. We do not want them to be able to keep their “best of the best” in this circumstance. Those people should return to productive industry.

The fact that the reprobates don’t see that as justice (the guy who posted earlier) makes it the more important this happen right now this year.

By: Skullbiscuit

Skullbiscuit — Mon, 03 Nov 2008 20:53:00 +0000

Anybody offer a good link for “Cantillon Effects”? I have Googled but have come up with many links which appear to be long works in which a succinct definition of “Cantillon Effects” within the context of what has been posted on banker’s compensation does not appear to be in the offing.

Skullbiscuit

By: Anonymous

Anonymous — Mon, 03 Nov 2008 20:02:00 +0000

Bankers give colossal campaign contributions to politicians, consequently, the entire government and its institutions are shills for Wall Street. The banks continue to pay exorbitant dividends on their stock, compensate their employees with huge bonuses and go on expensive junkets, even after the bailout, i.e., business as usual. The crooked bankers have political tin ears and the cynical politicians won’t do anything to their sugar daddies unless the people hold their feet to the fire. The price of democracy is constant vigilance.

By: Anonymous

Anonymous — Mon, 03 Nov 2008 19:51:00 +0000

“Banks have got in the habit of hiring the very best people for all its functions.”

Hahahaha…this cracks me up…

I would say stop patting each other on the back.

By: Anonymous

Anonymous — Mon, 03 Nov 2008 19:47:00 +0000

I agree there should be no bonuses, and again, was merely trying to explain the thought process within the banks which will lead them to pay bonuses anyway. I fully expect to receive no cash bonus, but I do think for junior staff there will be some cash pool remaining as those salaries are much lower. Again, I am talking about back office / parts of front office which are profitable. We shall see as the pools are decided in december/jan at most firms.
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By: Anonymous

Anonymous — Mon, 03 Nov 2008 19:46:00 +0000

MSM, as in “Money-Sponsored Media”? Hmm, perhaps not that surprising.

By: Anonymous

Anonymous — Mon, 03 Nov 2008 18:20:00 +0000

This was reported 2 weeks ago in the UK Guardian.

http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking

MSM failed to pick it up, for some reason.