UK
Any Credit Suisse bankers who flounced out in a huffy fit after learning they were going to receive the bulk of their bonuses in the bank’s toxic assets, may now be feeling rather foolish.
The Wall Street Journal says the fund formed from those assets has returned 17.5% since January.
Unfortunately, the 2,000 bankers with bonuses tied up in the fund won’t be able to realize their gains for another four and a half years (during which time anything could happen).
In the meantime, the Wall Street Journal says they’ve received their first interest payments of 2.5% already (although they’ll be obliged to repay some of this if they leave within two years). The WSJ also says that Credit Suisse staff are hoping for some form of cash bonus for 2009 because ‘big-ticket purchases’ aren’t possible under the toxic bonus scheme, regardless of its returns.
Were the assets strictly marked to market, because if so, then in a way, a 17% gain sounds surprisingly low. But if they were given at inflated prices based on belief and hope, then we could see it. (Clusterstock)
Nomura hires economist from Bank of England. (Financial News)
Goldman and other foreign banks have cut 1,100 jobs in Japan. (Bloomberg)
SocGen chief exec says same bonus rules must be applied internationally. (Bloomberg)
Citigroup says big banks are losing talent to small rivals. (Wall Street Journal)
There are hundreds of reasons the CFA (any level) is a waste of time for getting into investment banking. (MergersandInquisitions)
It’s not too late to do the right thing. Your top priority, after everything the taxpayer has done for you, is to build fortress balance sheets (instead of paying big bonuses. (Breaking Views)
Men do more housework as they get older. (Wall Street Journal)
I accept with the comment CFA is waste of time for the wannabe I’bankers… when I went for CFA coaching…. I know some I bankers who wanted 2 study CFA but till only level 1 and stop it coz for the knowledge they gain in financial statement analysis and its true it takes 100′s of hours of time to pass the exam not easy.
CFA is purely for wannabe fund/portfolio/wealth managers and well it is worth it.