While all other banks are trying very hard to distance themselves from proprietary trading and highlight the dramatic reforms they’ve made to their compensation systems, DB is doing no such thing.

The bank announced its third quarter results this morning, and attributed part of the tripling of its profits to increased revenue from equity prop trading (compared to losses last year).

According to Financial News, Deutsche also said that it’s made only “small changes” to its compensation model, although a higher proportion of this year’s bonuses will be deferred. Last year it was
rumoured that Deutsche paid bonuses worth up to 150k entirely in cash.

“The charge for Wasserstein’s stock awards, which vest 30 days after his death on Oct. 14, equals nearly 70% of the entire firm’s quarterly advisory revenue.” (Alphaville)

On a per-employee basis, compensation levels are going up. In the first nine months of the year, Lazard will pay its 2,300 employees an average of $301,680 each. (WSJ)

Speculation heats up over Bruce’s Lazard stake. (DealBook)

155k a year (and no bonus) for Robin Budenberg. (The Times)

Banks should be split into three parts. (FT)

Galleon paid banks millions for an ‘edge.’ (Alphaville)

How Citadel built an investment bank and Ken Griffin got fat. (Bloomberg)

Goldman’s lies of omission. (Pragmatic Capitalist)