How about brilliant financial reports? Big banks on Wall Street still need to cut salaries and lay off workers

category:Finance
 How about brilliant financial reports? Big banks on Wall Street still need to cut salaries and lay off workers


Bank of America, JPMorgan Chase and Citigroup, the biggest lending banks in the United States, have given their employees a clear message: bankers should be lucky to be hired and paid handsomely after 2020. Although traders made huge profits at the risk of infection in the early days of the global outbreak of the new coronavirus and in the last two months, the big banks made it clear that the bonuses might not match the profits they made.

Executives at JP Morgan and Citigroup told the media that they tried to manage employees psychological expectations of 2020 bonuses by emphasizing that banks had prepared for the possible default rate caused by the new crown outbreak that hit the global economy.

Investment bank bonus has always been a very delicate social topic. On the one hand, senior officials should balance the expectations of traders and bankers with the cost control requirements of investors, and on the other hand, they should also calm down the publics hatred for the high remuneration of banks.

But, according to Alan Johnson, the picture is different between investment banks. Employees in the investment banking departments of Morgan Stanley and Goldman Sachs are likely to receive more bonuses because of their smaller exposure to loans related to the outbreak of the new crown disease, with loan losses totalling only $35 billion this year.

According to reports, an insider familiar with J.P. Morgan told the media that it would be foolish to pay huge bonuses to traders and other employees in view of the uncertainty of the global economic outlook. It is foolish and unprincipled to consider paying huge bonuses to employees when broad economic expectations are uncertain in the medium and long term.

Insiders at Citigroup and Bank of America insist that their bonuses should keep pace with industry performance. For example, if a departments profits have increased by 50%, employees in that department can expect a 25% increase in bonus. Not only Wall Street, but European investment banks are facing a similar situation. Investment banks, including Barclays, Deutsche Bank and France Hing Bank, are all trying to revive their ailing businesses, trying to stabilize shareholders confidence in the era of negative interest rates, and senior officials believe that lowering bonuses is a foregone conclusion. Even though banks are generally tough this year, its still a good year for analysts and traders, at least they can expect more bonuses than other businesses, with more colleagues in their departments. According to Johnson & Associates, there is a big bonus gap between international investment banks this year, with some retail divisions likely to cut their bonuses by 30% or more. Source: Wind Information Editor: Yang Bin_ NF4368

Insiders at Citigroup and Bank of America insist that their bonuses should keep pace with industry performance. For example, if a departments profits have increased by 50%, employees in that department can expect a 25% increase in bonus.

Not only Wall Street, but European investment banks are facing a similar situation. Investment banks, including Barclays, Deutsche Bank and France Hing Bank, are all trying to revive their ailing businesses, trying to stabilize shareholders confidence in the era of negative interest rates, and senior officials believe that lowering bonuses is a foregone conclusion.

Even though banks are generally tough this year, its still a good year for analysts and traders, at least they can expect more bonuses than other businesses, with more colleagues in their departments. According to Johnson & Associates, there is a big bonus gap between international investment banks this year, with some retail divisions likely to cut their bonuses by 30% or more.