Monday's headlines: Banker pay set to be slashed
You knew pay would be down this year, but perhaps not this much. Bankers should expect their compensation slashed by as much as 30 percent over last year, with bonuses on track to sink by 40 percent, according to the Wall Street Journal.
A new report from Options Group suggests that bankers' pay packages will hit the lowest level since the 2008 financial crisis. Pay in equities is expected to be down by 29 percent and investment bankers are expected to take a 14 percent pay, while wealth-management employees can expect an 8 percent pay raise on higher assets and a growing market share at major banks.
For new grads, there is a little hope:
With many firms trying to reduce pay by cutting highly paid staff, business students intent on a Wall Street career are continuing to find opportunities, although some schools are reporting a slowdown in interviews and less-robust hiring than before the 2008 crisis.
Carl Huttenlocher got permission to raise $2 billion to invest in Asian corporate securities in a new hedge fund. [Wall Street Journal]
Banks around the world eye Iraq as next opportunity. [Financial Times]
Banco do Brasil is expanding on the East Coast after buying Eurobank of Florida. [Financial Times]
The failure of MF Global raises questions about how commodities brokerages treat customer money. [NY Times]
Brokerage Nomura Holdings started cutting jobs in its home market by eliminating at least 15 positions. [Bloomberg]