Lunchtime Links: RBS chairman - most investment bankers are journeymen who do not deserve big pay
Sir Philip Hampton, chairman of RBS, has done a Hank Paulson.
In 2003, Hank famously said, "I don't want to sound heartless, but in almost every one of our businesses, there are 15 to 20% of the people who really add 80% of the value. I think we can cut a fair amount and not get into muscle and still be very well-positioned for the upturn".
Now Sir Philip has said much the same.
According to Philip, banking is populated by mediocre journeymen who surround talented and deserving stars. Even though the journey men don't do much, they still get paid.
Hampton said it is one of the 'major challenges' of banking to reduce the pay of, "the more average bankers in the teams assembled by these stars."
Citi securities and banking revenues down 15% year on year. (Citigroup )
Citi stock slides following weak results despite accounting gimmickry. (Zerohedge )
Bonuses work for fruit pickers and factory workers, not for bankers. (Guardian )
We can't live in a world where every public official earning more than 55,000 is named, as the coalition intends, but no banker earning over a million has to reveal his or her identity. Britain should take a lead. (Guardian )
A typical banker at the American investment banking giant enjoys a pay package - including a large bonus - which is 11 times larger than most workers. (Daily Mail )
Corporate finance fees in Europe may rise as much as 30% this year, Stephan Leithner, co-head of investment-banking coverage and advisory at Deutsche Bank , said in an interview. (Bloomberg )
Goldman's Facebook plan falls apart. (Felix Salmon )
Investment banks are offering one quarter fewer entry-level roles than before the recession. (Financial Times )
Hedge fund takes 100m short position in Barclays. (Telegraph )
Surely the Tunisian president didn't come up with the idea to flee with 25% of Tunisia's gold entirely on his own. (Zerohedge )
Could you drink a pint and a half of coffee? (Guardian )
