Sky News reported today that Barclays will punishing its bankers harshly for their involvement in the Libor scandal. Barclays’ UK and US Libor fines total £291m, but the bank will be cutting its bonus pool by £450m in response to the Libor affair, said Sky.
Barclays’ move looks particularly harsh compared to other banks implicated in Libor fixing. Royal Bank of Scotland (RBS) is expected to cut its bonus pool by £300m to help cover its £390m Libor fine. UBS was fined $1.5bn for Libor and is said to be cutting investment banking bonuses by $750m.
Barclays’ harshness is likely to cause disgruntlement, especially in the US where ex-Lehman bankers are already said to be unhappy with new CEO Antony Jenkins. Sky said £290m of Barclays’ bonus reductions are being taken from the 2012 bonus pool. £160m is being clawed back from previous years. Sky points out that Barclays bonus pool is still expected to be £1.8bn in total, however.
There are between 600 and 700 people at Barclays earning more than £1m according to the Financial Times. Most of them are in Barclays’ investment bank. Were it not for the Libor scandal, there may have been plenty more.
Dorothee Blessing, co-head of investment banking for Goldman Sachs in Germany and the wife of Martin Blessing at Commerzbank, is stepping down. (Fox)
Blackrock will be less tolerant of – and quicker to replace – underperforming fund managers in future. (Bloomberg)
Michael Hintze is the highest paid hedge fund manager in London. Last year he earned $350m. (Telegraph)
Of the 28,300 jobs the New York securities industry lost during the crisis, only about 8,000 have been added back. (NY Mag)
The average cash bonus on Wall Street was $121k last year. This didn’t include stock. (WSJ)
Edmond de Rothschild is opening in Frankfurt. (FinNews)
Bizarrely, RBS bought John Hourican’s Amsterdam home from him, for £4.3m. (Telegraph)
Greg Tusar, head of electronic trading at Goldman Sachs, is leaving the bank. (Financial Times)
BlueCrest Capital Management is hiring prop traders who left Nomura. (Bloomberg)
92% of people working in private equity are now satisfied with their careers. Last year 38% were. (Financial News)
It now takes an average of 10 weeks to find a new job and seven hours to prepare for an interview. (Telegraph)
Disfluency leads you to think more deeply, as I mentioned earlier, that it forms a cognitive roadblock, and then you think more deeply, and you work through the information more comprehensively. (Edge)
It is time we distinguished between successful and unsuccessful psychopaths. (SSRN)