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Lunchtime Links: A reminder that financial services pay has a LONG way to fall

You might not be working in banking for the pay. Maybe you're at Goldman Sachs and are there for the "sense of family and belonging." Chances are, however, that the pay plays a big chance in your motivation.

The graph below is, therefore, bad news.

Taken from yesterday's Financial Crisis Enquiry report, it's a timely reminder that financial services pay diverged massively pay from all other pay in the 28 years after 1980. The discrepancy is now enormous and has only just begun to be reversed.

FCICgraph

"J.P. Morgan bought Bear Stearns because the United States government asked us to!" Mr. Dimon said, nearly shouting. (WSJ)

Sarkozy goes postal on Jamie Dimon. (Zerohedge)

Sarkozy is the new poster boy for a Tobin tax. (Guardian)

Morgan Stanley has made more managing directors than at any time since 2007. (Wall Street Journal)

Only 16% of Morgan Stanley's managing directors are women. (Financial News)

Investment banks cashed in during the financial crisis from bumping up the fees charged to companies that were trying to raise money in the markets. (Telegraph)

Goldman believes FICC trading revenues could increase due to growth in emerging market securities and an increase in client risk appetites. (Financial News)

Mr Evans, one of three Goldman vice chairmen, was based in Hong Kong for more than five years, an unusually long period for such a senior banker. (Financial Times)

Amazing interactive graphic on HK banker migration: everyone left Nomura and UBS; everyone joined BarCap. (Wall Street Journal)

Forcing a break-up of British banks would damage taxpayers' returns from their 67bn stakes, Robin Budenberg, the boss of UK Financial Investment (UKFI), has warned MPs. (Telegraph)

In a crisis, people like hiring women. (HarvardBusinessReview)

People you know to be complete idiots will make a lot more money than you do. (CNBC)

Demi Moore says bankers more overpaid than movie stars. (BusinessInsider)

Hedge fund manager has relocated to the South Downs of England to establish the Rathfinny vineyard and winery. (FinAlternatives)

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AUTHOReFinancialCareers UK Insider Comment
  • Sn
    Snodgrass
    28 January 2011

    GetRealChaps - if you think this has been cleared up, you'd think the situation in Egypt is tidy.

  • Ge
    GetRealChaps
    28 January 2011

    Fine. Thanks for clearing that up.

  • Jo
    John the hun
    28 January 2011

    Bankers don't LIVE off the tax payer, they were - at a point of immense stress in the global financial system - underwritten by the taxpayer. The taxpayer charges and is likely to make a big profit out of this underwriting. Most of the time bankers pay net taxes. The public servant, on the other hand, is a clear cost, at all times.

  • Ge
    GetRealChaps
    28 January 2011

    You believe bankers don't live off the taxpayer?

    You've been living in a cave since 2007, right?

  • Jo
    John the hun
    28 January 2011

    Red Sean - so who, in your estimation, deserves to be paid more? Fred Smith the public servant who simply lives off the taxpayer? Get real.

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The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.