Lunchtime Links: In fact, JPMorgan's highest earners earn more than Goldman Sachs's
DealJournal has hit upon an interesting fact: despite all the opprobrium heaped upon the (allegedly) gun slinging, God-fearing bankers at Goldman Sachs, the highest paid investment bankers at JPMorgan are actually earning more than their squid-like rivals.
Last July's report from Andrew Cuomo revealed that the top four bankers at JPMorgan received a combined $74.8m for 2008; the top four bankers at Goldman Sachs received $45.9m. Meanwhile, the next six bankers at JPMorgan got $60.96m to share, while their Goldman counterparts merely got $56.4m.
So, how come JPMorgan bankers aren't facing lynch mobs, party bans, and warnings of relegation to tier two due to image problems? DealJournal thinks it might have something to do with luck, humility, and the fact that the average pay per head figure at JPMorgan is an acceptable $134k because it's diluted by lots of bank tellers.
"Regulatory changes mean that Goldman has to set aside more capital for its trading activities, so to make the same return on capital in future it will have to take more risk."
At least two candidates to replace Ken have said BofA should be broken up. (Wall Street Journal)
Consultants [banks] were paid 150m by the Treasury for advice during the banking crisis. (Daily Mail)
The demand that the "quantum" of RBS's bonus pool for 2009 be agreed by the Treasury appears to go against everything the Government has been saying. (The Times)
RBS says the British government's "very restrictive" control over 2009 bonuses risks driving employees away. (Bloomberg)
Darling says: "The reality is the real competition to Europe's financial centres comes from outside our borders." (The Times)
Regulation and rule books are the new black. They keep out the riff raff as only the smart people can navigate them. (Fintag)
Numis says it's still hiring in the UK and the US. (Numis)
Bring on the green investment bank. (Guardian)
Tallest tower opening in London next year will be ...a student dormitory. (Bloomberg)
When investment bankers write deranged/entitled letters to their kids' schools. (Dealbreaker) (HT Felix Salmon)
"Where I work, many of the tops dogs are open about their affairs. Having a mistress is like having a flash car." (Finextra)
