Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWall Street profits dropped 30 percent last year
Average Wall St. Bonus Increased by 15% in 2013
By WILLIAM ALDEN
On Wall Street, profits are down and the number of workers is shrinking.
But bonuses continue to swell.
Those payouts to Wall Street employees in New York City rose 15 percent on average last year, to $164,530, according to estimates released on Wednesday by Thomas P. DiNapoli, the state comptroller. That was the biggest average bonus since 2007, the year before the financial crisis.
Over all, workers in the securities industry in the city made an estimated $26.7 billion in bonuses last year. The bonus figures encompass everyone from the low-ranking employee to the chief executive, so high payouts to top managers can bring up the average.
That bonuses rose during a challenging environment for the banks reflects a cardinal rule of Wall Street: Firms are willing to pay big for top talent. This held true even as profits overall fell 30 percent to $16.7 billion, according to the comptrollers report.
- more -
http://dealbook.nytimes.com/2014/03/12/wall-street-bonuses-go-up-as-the-number-of-jobs-goes-down/
By WILLIAM ALDEN
On Wall Street, profits are down and the number of workers is shrinking.
But bonuses continue to swell.
Those payouts to Wall Street employees in New York City rose 15 percent on average last year, to $164,530, according to estimates released on Wednesday by Thomas P. DiNapoli, the state comptroller. That was the biggest average bonus since 2007, the year before the financial crisis.
Over all, workers in the securities industry in the city made an estimated $26.7 billion in bonuses last year. The bonus figures encompass everyone from the low-ranking employee to the chief executive, so high payouts to top managers can bring up the average.
That bonuses rose during a challenging environment for the banks reflects a cardinal rule of Wall Street: Firms are willing to pay big for top talent. This held true even as profits overall fell 30 percent to $16.7 billion, according to the comptrollers report.
- more -
http://dealbook.nytimes.com/2014/03/12/wall-street-bonuses-go-up-as-the-number-of-jobs-goes-down/
Thanks Obama.
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
13 replies, 790 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (0)
ReplyReply to this post
13 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Wall Street profits dropped 30 percent last year (Original Post)
ProSense
Mar 2014
OP
The Federal Reserve Bank has funneled trillions into Wall Street during Obama's presidency.
Romulox
Mar 2014
#8
You know what "blinds": hate. You just denied that you blamed Obama for the bonuses. n/t
ProSense
Mar 2014
#11
What the hell does that have to do with bonuses, as you dismiss the drop in profits? n/t
ProSense
Mar 2014
#10
cali
(114,904 posts)1. lol. thanks for what, pro? do tell.
"lol. thanks for what, pro? do tell."
... you want to blame him for the bonuses, but not the drop in profit?
Why?
Romulox
(25,960 posts)5. They got the bonuses *despite* the drop in profits, ProSense...
Just wait for it, you'll understand why the argument you're trying to make doesn't work.
ProSense
(116,464 posts)6. I know, Obama handed them out after causing their profits to drop.
Romulox
(25,960 posts)8. The Federal Reserve Bank has funneled trillions into Wall Street during Obama's presidency.
Look it up.
cali
(114,904 posts)9. adulation blinds.
ProSense
(116,464 posts)11. You know what "blinds": hate. You just denied that you blamed Obama for the bonuses. n/t
ProSense
(116,464 posts)10. What the hell does that have to do with bonuses, as you dismiss the drop in profits? n/t
Romulox
(25,960 posts)2. *They* got bailed out. *We* got "the new normal". nt
ProSense
(116,464 posts)4. Kick! n/t
PowerToThePeople
(9,610 posts)7. Thieves keep thieving. Where is the justice?
Oh, we Wall Street.
ProSense
(116,464 posts)12. Maybe their profits will keep going down.
When Regulation Threatens, Bankers Predict Doom For Main Street
by Jesse Eisinger
<...>
No sooner had that issue been resolved when Washington convulsed with a new crisis, now upon us: the C.L.O. panic...The House held a hearing last week to examine the issue. American Banker, a trade publication, ran an article with a headline that succinctly summarized the industrys view: How Dodd-Frank Might Kill the C.L.O. Market.
<...>
Collateralized loan obligations, as the acronym is known, are bundles of loans, usually made to junk-rated companies. They use the same techniques as collateralized debt obligations, which were often made up of subprime mortgage investments and were the rotten core of the financial crisis. C.L.O.s caused billions in losses for banks during the market panic of 2008, but most recovered strongly and memories faded. Junk-rated companies rallied, and C.L.O.s roared back.
Under the Volcker Rule, which prevents banks from making speculative investments or owning large pieces of hedge funds or private equity firms, some C.L.O. holdings might be prohibited. Some C.L.O.s own securities or bonds, and those are considered more speculative. (In a regulatory quirk, bonds and loans get different regulatory treatments.) Some C.L.O.s give certain investors the ability to remove the manager that makes the C.L.O.s investment decisions. That could be construed as a form of ownership control, which would bar banks from participating under a strict construction of the Volcker Rule.
The banking industry has been making loud noises about how the uncertainty could have dire consequences. As with the TruPs ruckus, the big banks have defended their interests in the name of smaller and more sympathetic entities. According to the banking lobby and its friends in Congress, any threat to the C.L.O. market is actually a dagger pointed at midsize businesses, which will have trouble finding capital as a result. In written testimony to the House subcommittee, a United States Chamber of Commerce representative expressed serious concerns that the regulators had failed to take into account the impact of the Volcker Rule upon the capital formation of Main Street businesses, adding ominously that it may only be the first wave of capital formation problems that may crop up as a result of the Volcker Rule....this skirmish is largely about preserving a market for the largest banks. Just three too big to fail banks JPMorgan Chase, Citigroup and Wells Fargo account for 71 percent of bank C.L.O. holdings, according to Better Markets, the banking reform group. And the large banks get fees from creating the deals.
- more -
http://www.propublica.org/thetrade/item/when-regulation-threatens-bankers-predict-doom-for-main-street
by Jesse Eisinger
<...>
No sooner had that issue been resolved when Washington convulsed with a new crisis, now upon us: the C.L.O. panic...The House held a hearing last week to examine the issue. American Banker, a trade publication, ran an article with a headline that succinctly summarized the industrys view: How Dodd-Frank Might Kill the C.L.O. Market.
<...>
Collateralized loan obligations, as the acronym is known, are bundles of loans, usually made to junk-rated companies. They use the same techniques as collateralized debt obligations, which were often made up of subprime mortgage investments and were the rotten core of the financial crisis. C.L.O.s caused billions in losses for banks during the market panic of 2008, but most recovered strongly and memories faded. Junk-rated companies rallied, and C.L.O.s roared back.
Under the Volcker Rule, which prevents banks from making speculative investments or owning large pieces of hedge funds or private equity firms, some C.L.O. holdings might be prohibited. Some C.L.O.s own securities or bonds, and those are considered more speculative. (In a regulatory quirk, bonds and loans get different regulatory treatments.) Some C.L.O.s give certain investors the ability to remove the manager that makes the C.L.O.s investment decisions. That could be construed as a form of ownership control, which would bar banks from participating under a strict construction of the Volcker Rule.
The banking industry has been making loud noises about how the uncertainty could have dire consequences. As with the TruPs ruckus, the big banks have defended their interests in the name of smaller and more sympathetic entities. According to the banking lobby and its friends in Congress, any threat to the C.L.O. market is actually a dagger pointed at midsize businesses, which will have trouble finding capital as a result. In written testimony to the House subcommittee, a United States Chamber of Commerce representative expressed serious concerns that the regulators had failed to take into account the impact of the Volcker Rule upon the capital formation of Main Street businesses, adding ominously that it may only be the first wave of capital formation problems that may crop up as a result of the Volcker Rule....this skirmish is largely about preserving a market for the largest banks. Just three too big to fail banks JPMorgan Chase, Citigroup and Wells Fargo account for 71 percent of bank C.L.O. holdings, according to Better Markets, the banking reform group. And the large banks get fees from creating the deals.
- more -
http://www.propublica.org/thetrade/item/when-regulation-threatens-bankers-predict-doom-for-main-street
ProSense
(116,464 posts)13. U.S. Senate Confirms Wall Street Critic as Treasury No. 2
U.S. Senate Confirms Wall Street Critic as Treasury No. 2
WASHINGTON The U.S. Senate on Wednesday approved Federal Reserve Governor Sarah Bloom Raskin to be the No. 2 official at the Treasury Department, backing a critic of Wall Street to help coordinate an overhaul of financial regulations.
The Senate approved the nomination by voice vote.
Raskin, who was a state banking supervisor before she joined the Fed, is expected to play a central role in the roll-out of regulations aimed at preventing a repeat of the 2007-09 financial crisis.
Her departure from the central bank opens yet another seat on the Fed's board for President Barack Obama to fill. Obama on January 10 nominated former Bank of Israel Governor Stanley Fischer to serve as vice chairman and two others for regular board seats.
The Treasury declined to make Raskin available for an interview ahead of her confirmation, but in the past she has been an outspoken critic of some of modern finance's favorite ideas and pastimes.
- more -
http://www.nytimes.com/reuters/2014/03/12/us/politics/12reuters-usa-treasury-raskin.html
WASHINGTON The U.S. Senate on Wednesday approved Federal Reserve Governor Sarah Bloom Raskin to be the No. 2 official at the Treasury Department, backing a critic of Wall Street to help coordinate an overhaul of financial regulations.
The Senate approved the nomination by voice vote.
Raskin, who was a state banking supervisor before she joined the Fed, is expected to play a central role in the roll-out of regulations aimed at preventing a repeat of the 2007-09 financial crisis.
Her departure from the central bank opens yet another seat on the Fed's board for President Barack Obama to fill. Obama on January 10 nominated former Bank of Israel Governor Stanley Fischer to serve as vice chairman and two others for regular board seats.
The Treasury declined to make Raskin available for an interview ahead of her confirmation, but in the past she has been an outspoken critic of some of modern finance's favorite ideas and pastimes.
- more -
http://www.nytimes.com/reuters/2014/03/12/us/politics/12reuters-usa-treasury-raskin.html