Morning Coffee: Wall Street Expects Bigger Bonuses
Forget those rumors about slashing bonuses. Roughly 48% of Wall Street execs expect to receive larger bonuses in 2012 than they did a year ago, according to a recent eFinancialCareers survey.
The report is especially eye-opening considering that a number of banks have been said to be prepared to cut bonuses as a way reduce costs. Layoffs at big banks have littered the headlines throughout the summer.
Last year, just 41 % of U.S. financial professionals surveyed felt their incentivized compensation would rise. Expectations aren’t increasing across the board, however. Employees at hedge funds and asset management firms have lofty expectations for their year-end bonuses while bulge bracket banks and broker-dealers remain rather pessimistic. The survey polled 1,000 U.S. financial executives.
“The mood is better, some people will be happier, but we still have another quarter to go,” Constance Melrose, eFinancialCareers.com’s managing director in the Americas, told Bloomberg. “People are less pessimistic than they were a year ago.”
E&Y Headcount Continues to Grow (eFinancialCareers)
Big Four accounting firm Ernst & Young expects to hire more than 10,000 experienced and entry-level financial services employees in the U.S. during its fiscal year ending June 2013.
The International Monetary Fund issued a sobering global economic forecast on Tuesday, warning that another fiscal downturn is in the making if certain goals aren’t met.
Chinese Government Makes a Stand (WSJ)
Seeking to resuscitate a struggling economy, China’s central bank injected billions of dollars into the nation’s money market on Tuesday, hoping to cut interbank lending costs and encourage banks to offer lower-interest loans.
MetLife Betting on Real Estate (Reuters)
With interest rates expected to hover near record lows, life insurer MetLife is launching an investment-management business that will focus on real estate equity, commercial mortgages and debt private placement.
No More Risky Business (Reuters)
In a clear effort to become more risk-averse, Barclays has agreed to acquire ING’s U.K. mortgage and savings business, including the accounts of roughly 1.5 million customers. Approximately 750 ING Direct U.K. employees will become members of Barclays’ retail banking unit.
Mortgage Fraud Crackdown (Bloomberg)
The U.S. Attorney General’s Office has filed charges against 530 people involved in “foreclosure rescue schemes” that targeted homeowners who fell behind on their mortgage payments.
Cuts Confirmed (Financial Times)
Julius Baer, which purchased Bank of America Merrill Lynch’s overseas wealth management business in August, will cut as many as 1,000 jobs within the unit in the coming months.
|Buzz Around the Office|
Congratulations Err Oops (News.com.au)
A New Zealand airline was forced to apologize after one of its flight attendants, assuming a passenger was more than 28-weeks pregnant, asked to see the woman’s medical documentation. It just so happened the woman was without child.
List of the Day: Eating Alone
If you ever find yourself eating out alone, make the best of the situation by networking with those around you. Here’s how.
- Sit at the bar, not a table.
- Put the gadgets away and ask neighbors work-related questions.
- Carry business cards.