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Did JPMorgan, Deutsche and Goldman increase risk to increase pay?

As noted yesterday, Q1 pay at most banks augers well for a generous 2009.

Interestingly, however, the graph below shows that three out of five banks (JP, Deutsche, and Goldman) appear to have increased pay in proportion with risk taking. Is this entirely coincidental?

VaRvspay

Comments (14)

Comments
  1. Sarah, you need to learn how to format excel charts nicely – this is a key skill in this industry…

  2. I love how much abuse that poor woman gets. No wonder she works on her own website and not in a bank with the rest of you condescending idiots.

  3. I quite like the pink and red effect.

    Sarah, Editor, eFinancialCareers Reply
     
  4. And, this is not my own personal website. I am a small part of a far larger entity – Dice Inc.

    Sarah, Editor, eFinancialCareers Reply
     
  5. Sarah has a well-known fondness for bright pink.

    Paul, eFinancialCareers Reply
     
  6. Deutsche’s change in VaR looks miniscule compared with GS and JP.

  7. Equally, so is it’s increase in pay.

    Sarah, Editor, eFinancialCareers Reply
     
  8. Isn’t VaR now redundant?
    Weren’t they using that to measure risk before crisis??

  9. VAR is a useless measure of risk. VAR should naturally fall significantly when prices fall – they just havent got too much further to fall, whilst the models predict exactly the opposite. My portfolio shows a very high VAR compared to last year, even though its value has halved, meaning less value to lose, because its already been lost..

  10. Madame Butcher – despite the liking for pink – i have to agree with MarryMeSarah – whose proposition you appear to have selectively ignored?

  11. The graph has now been amended thanks to the Excel skills of a reader. Sorry, I hadn’t noticed that someone wanted to marry me. I am touched.

    Sarah, Editor, eFinancialCareers Reply
     
  12. Dont be touched Sarah, be ecstatic, I only propose to webmasters once or twice a month.

    Perhaps Henry could read us our vows?

    So if its all agreed, where should I go ahead and book the reception for?

  13. I am not sure that I want to marry you if I am only one of several webmasters you are pursuing. Nor am I convinced that having Henry as the marriage meister would be an auspicious start. We are better off as friends.

    Sarah, Editor, eFinancialCareers Reply
     
  14. ‘We are better off as friends.’… story of my life.

    Ah, i guess it is better off that way. Two years ago I could have a given you a 3-carat VS1-clarity boodles ring on our engagement, but since my net worth has fallen ever so slightly with the demise of my ML (ahem, BofA) options, you’d be lucky to get as much as a packet of walkers crisps from me…

    Boys like us just cant provide for a princess like you anymore… perhaps its time to set up elawyercareers.com, or god forbid, eaccountantcareers.com and find yourself someone worthwhile, somone with a Black Amex rather than a Natwest Solo. *Sniff Sniff*

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