Tuesday's Headlines: Wall Street bonuses seen dropping 20 to 30 percent this year
Wall Street bonuses are expected to drop 20 to 30 percent this year, according to a closely tracked survey by Johnson Associates, Deal Book reports. Employees in trading and investment banking divisions, which have struggled mightily this year, face the biggest declines.
"It would be the weakest bonus season since the financial crisis and a reflection of the leaner times confronting the industry," the Web site writes, noting that bonuses for Wall Street chiefs including Goldman Sachs CEO Lloyd Blankfein and J.P. Morgan CEO Jamie Dimon are also set to drop.
"The bonus forecast will come as no surprise to many on Wall Street. Trading profits have slumped and new Dodd-Frank regulations have raised the cost of doing business," Dealbook writes.
A slew of Wall Street banks reported weaker than expected quarterly profits this year due to the challenging business climate.
Derivatives assets at top U.S. banks soared in third quarter, sharply raising risk exposure. [Wall Street Journal]
Ex-banking star Sallie Krawcheck says Wall Street needs more women to compete. [Reuters]
Morgan Stanley traders suffered losses on 31 days in Q3, most since 2008. [Bloomberg]
Credit Suisse to give tax authorities names of clients with secret Swiss accounts. [Reuters]
Wells Fargo settles municipalities' lawsuit over handling of muni bond auctions. [Wall Street Journal]
HSBC head says foreign banks may spark credit crunch in Asia. [Financial Times]
Society Generale to slash bonuses, eliminate dividends after difficult quarter. [Bloomberg]
Morgan Stanley may be sued by investors for allegedly selling faulty mortgage bonds. [Reuters]
Munich Re profits plunge on eurozone crisis and natural disasters in U.S. and Asia. [Financial Times]