2008 is not that long ago. When it comes to pay at banks in the City of London, however, it's in a different dimension.
A case currently being heard in a London court has highlighted just how much some traders were earning during and after the financial crisis. Concerning Deutsche Bank, it's been brought by Yves Paturel, a former trader at the German bank who was let go two months ago during Deutsche's probes into LIBOR fixing. Paturel claims he wasn't paid enough.
In the year 2008-2009, Paturel earned €4.3m (£3.1m/$4.89m). This sounds a lot, except that two more senior traders at Deutsche - Christian Bittar and Carl Maine, earned €84m and €38m respectively. Deutsche Bank said both men were paid a percentage of their profits.
Bittar's gigantic pay was already known to us. Carl Maine's, however, is a revelation. Maine graduated from a bachelor's degree at Imperial College in 2000, suggesting that he was around 29 in 2008 (assuming he was 21 when he left university). Today's young 20 year-olds are unlikely to able to replicate this kind of earning curve, however. Deutsche says it scrapped percentage pay deals in 2009. “Those bonuses are a once in a lifetime scenario,” Jason Kennedy, chief executive officer of London-based recruitment firm Kennedy Group, told Bloomberg. “It was a place and time that will never reoccur in our generation.” Today Maine runs CVMaine, an early stage investment company in London. His investments to date include a nail salon in Vauxhall, a children's nursery in Maida Vale, and a chain of hair salons.
Separately, Bill Winters only arrived at Standard Chartered on Wednesday last week, and he is already making is presence felt. Bloomberg reports that Winters has ejected Sean Wallace, the bank's Singapore-based head of corporate and institutional clients. A summer of uncertainty awaits - Winters won't be announcing his new senior management team until the end of the summer.
Man leaves $300k job at Deutsche Bank for clothing side project. $300,000. (Business Insider)
Deusche Bank is moving a lot of back office and IT people to Canary Wharf. (Reuters)
The UK has got a new private bank called Hampden and Co. It will have offices in Edinburgh and London. (Financial Times)
Goldman Sachs will be advising the UK government on the sale of Lloyds and RBS. (Sky)
Sergio Ermotti says UBS is fixing its problems and that bankers who knowingly break rules should be sent to jail. (WSJ)
UBS had a guide to fixing Libor. (Dealbreaker)
Why the intern work rules will make no difference. 'They just have to leave and not be in the office between 12-7, which means that will just work at home.' (WSO)
Intern classes are younger and more intelligent than they used to be, but still formed primarily of white males. (Business Insider)
Corporate toilet etiquette. (ThoughtCatalog)