Monday's Headlines: Wall Street bonuses set to drop up to 30%: study
Bonuses for fixed-income and equities bankers will fall between 20 and 30 percent this year, eFinancialCareers reports, citing a study by pay consulting firm Johnson Associates. The estimate reverses Johnson's study from May which predicted that bonuses would rise 10-15 percent. Higher ranking executives, meanwhile, would likely see their bonuses remain flat or fall up to 30 percent.
"The new estimates are driven by a 'lack of economic recovery' as well as regulations and the 'ongoing uncertainty in world markets,'" says the study.
During the most recent earnings season, large banks issued mixed reports regarding their compensation pools. Goldman Sachs said it set aside 9 percent less in the first half of this year than in the same period a year ago, while JP Morgan Chase left its pool unchanged and Morgan Stanley added 10 percent to funds available for salaries and bonuses.
Wells Fargo scoops up dozens of Citadel bankers after founder says he plans to close securities business. [Bloomberg]
Bank of America exits international credit card business, sells units. [Dow Jones Newswires]
US regulators face complex challenges as they write rules to govern failed bank 'living wills.' [MarketWatch]
Southern Europe credit crunch grows likelier as banks stressed in medium and long-term funding. [Reuters]
French leaders hunting for source of false article that led to Societe Generale sell-off. [New York Times]
Goldman Sachs, Citigroup raised exposure to French banks before massive stock plunge. [Bloomberg]
Mega-rich shouldn't get tax breaks while ordinary Americans struggle, Buffet says. [New York Times]
Bank of New York Mellon sued by Florida over currency trading favoritism charges. [Wall Street Journal]
New SEC office to offer cash rewards to whistle-blowers, push harder on fraud complaints. [DealBook]
Financial advisers not as trusted as they like to think, study says. [Investment News]
Credit Suisse expected to settle tax evasion investigation for $1 billion. [BusinessWeek]