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timmy_30

City Bonuses B**shit

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Just a heads up, alot of guff has been printed in the financial/property sections of the papers recently about how mega city bonuses were set to rescue the London housing market.

Here's a link to an industry paper that I recieve, covering the start of bonus season with 3 of the big US banks kicking off.....

http://news.efinancialcareers.co.uk/NEWS_I...newsItemId-5483

To sum it up..... bonuses at CitiGroup, JP Morgan and Morgan Stanley has been dissapointing. In fact down right bad. These banks are not just big in the US they are amongst the biggest city of London/docklands employers.

A few small West End hedge funds may be paying well but as a whole 'The Industry' is bracing itself. For bonuses to have any effect they'd need to be spread widely across the sector not just amongst a few stars.

So next time so spotty chimp of an estate agent tells you that the London market is going to take off this spring as the bonus cheques land, you'll know he's bullshitting. ;)

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Guest Fiddlesticks

It's hard to credit the report quoted as good journalism either: a few anecdotes and inconclusive speculation. Without any statistics (and of course the institutions in question will never publish them) the effect of bonuses remains unclear.

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Interesting because the way the VIs were selling bonuses was they were going to be mega and the catalyst to a resurgent market in the spring/summer. Made front page news in many papers a week ago. Very positive for sentiment.

Once Timmy's news becomes mainstream the positive bit of sentiment created by this spin will pop!

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Another one of London Landlady's arguments gone? What was her third again?

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Guest

Given the wealth of information we have about the property market, precisely which city-boys would we expect to prop it up?

Strikes me - only those with the poorer performance records!

:lol:

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From the report:

"Despite the bank more than tripling 2005 profits in its corporate and investment banking division, some back office and middle office staff in Citigroup’s credit derivatives team saw bonuses fall more than 50% vs. 2004. "

How sad for the clerks in the back office. However, it means all the more for those who are client facing and actually generate revenue: the bonus pie is set at a benchmarked, fixed proportion of revenues. And revenues are fine.

If you're a CF banker with clients, particularly clients who would go with you if you leave, you'll be right.

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Without any statistics (and of course the institutions in question will never publish them) the effect of bonuses remains unclear.

Say mega-bonuses do come through is there a rule saying they must be spent on speculative property? :)

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in Citigroup’s credit derivatives team saw bonuses fall more than 50% vs. 2004.

Maybe next year rather than getting a bonus they'll be having to chip in from their salary to keep them in profit.

The toilet paper is clogging up the bowl and the pipes are beginning to backfill with gas. One spark and it is new wallpaper time. :)

Edited by OnlyMe

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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