Should society spare a tear for bankers?

9 October 2007

2 minute read

Should society spare a tear for bankers?

With redundancies approaching faster than Lewis Hamilton in a Lamborghini, some say 'fat cat' bankers are getting their just desserts. True? Or false?

Michael Snyder, policy chairman of the Corporation of London, has been doing the rounds trying to drum up a bit of support for the City in its moment of need. Earlier this month, Snyder featured in the Observer, where he pointed out that the City makes a net contribution of 20bn a year to the UK coffers. He also said City workers' bumper packages come at the expense of working in a "chillingly risky" market environment.

Now, Observer readers aren't exactly known for their compassion towards CDO traders, so let's just say they weren't exactly sympathetic to Snyder's case. One said the City created its own 'boom or bust' environment and that the risks in financial services are no different from any other industry. "The City plays a major role in creating envy, dissatisfaction, division and violence in our society. I say all this as someone who has been a successful stockbroker for the past 11 years," said another.

Let us know what you think. Does the risk of being made rudely redundant when times are bad justify receiving a very big bonus when times are good? And are Observer readers merely envious that they haven't been earning six figure payouts and buying part shares in executive jets?

AUTHORPaul Clarke

No
Not a banker
16 October 2007
I see little difference between these 2 professions. Only that the ladies are less self-obsessed.
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Anonymous
10 October 2007
Financial Services is the second oldest profession. Obviously created to help invest the profits of the oldest one.
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Thomas
9 October 2007
Nothing like a good cleanout after a long upsurge! Let the complacent and lazy fall by the wayside....
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Anonymous
9 October 2007
In the next few months a few heads will roll and there will be much singing and dancing over cost cutting, however the markets have not collapsed and we have still seen record levels of investment. This in some ways, is an opportunity to look at banking divisions and restructure and remove those who aren't performing or pushing poor products without due care and attention. The rest will take a cut in the overall bonus as our employers create a nice strategic reserve so we don't all go down the pan and ride out the storm. Better try and reclaim the Porsche deposit lads.
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Anonymous Fixed Income
9 October 2007
University professors (at least in the UK) aren't paid enough. Especially considering how much uncertainty they go trough during the time they are postdocs - different city every 1 or 2 two years for 5-6 years before they usually become permanent members of staff.
But the previous point still stands. If it was easy for the banks to choose M&A "analysts and associates just out from university" then they won't be paid so much. Banks try to minimize costs. Just look at how they fire people so that they won't have to pay bonuses.
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