Christmas Has Been Canceled For Wall Street’s Bankers

This is lost puppy, starving in the woods, sad.

Year-end compensation will be lower by 5 percent to 10 percent broadly throughout the financial services industry, the report said on Monday, with fixed-income traders experiencing an even larger drop as bond trading revenue continues to be weak.
Payouts to investment bankers who advise companies on mergers could rise 15 percent to 20 percent as the global market for dealmaking remains strong.

Compensation for debt traders, meanwhile, could fall as much as 20 percent from a year ago as doubts about Federal Reserve interest rate policy and China’s economic slowdown have negatively affected banks’ bottom lines.

Morgan Stanley said last quarter that bond trading revenue had fallen 42 percent, while Goldman Sachs Group Inc reported a 33 percent decline.

Investment bankers who help companies underwrite initial public offerings may experience a pay decline of 5 percent to 15 percent. Many companies have decided to stay private for longer amid choppy markets.

Banks are setting aside less money for pay. Goldman said it had earmarked 16 percent less money for compensation in the third quarter than it had for the same period last year. JPMorgan Chase & Co also said it had set aside 13 percent less money for compensation.

One could argue this is Fred Wilson’s fault too. Had Fred and his San Fransican friends not been so damn greedy, hoarding all of the cool, kick ass, tech companies in private holdings, our beloved Wall Street bankers could be making enough money to treat Tiny Tim and maybe even buy a nice turkey for the holidays.

Instead, Tiny “fucking” Tim is hobbling about the room, on the verge of death. Bankers are sad, without cocaine. All the while, Fred wilson and his San Franciscan friends get fatter (gluten free range, organically) and richer.

What is this world coming to?