Posted on 06/23/2009 6:48:27 PM PDT by Crazieman
Drudge Developing:
FLASH: CITIGROUP intends to raise salaries by up to 50%; Effort to halt exodus of top traders, bankers... Developing...
Talent? They obviously are not talented if they are about to go bankrupt or did or took tarp money. I say freshblood is a good thing. Revitalization is a very good thing for a business.
Wells is actually in pretty good shape as are many regional banks and a few large ones...
Not every person who works for every bank had a thing to do with what is going on now.
Although that is certainly true, that new blood could just as easily go to a bank that’s already in good shape, so Citi would still have to pay enough to attract them.
I used to think that too. My guess is they would simply retire. I am sure most of them have earned enough to retire and live out their lives.
Or one of the thousands of large and small funds out there that need trading talent; many that are perfectly healthy and even thriving.
Wow! That's great logic you have there. Every single employee is directly responisble for the company's troubles and, by extension, is pretty much worthless at their trade. And that Barry Sanders guy really sucked at football too. Every year his team was horrible. No talent!
Actually it was the gooberment officials like Frank and Dodd that screwed up the system to the point they had to get these bad loans off their books.
The market doesn’t operate in a vaccuum. The pressures of Congress on the markets coupled with the pressures of EEOC enforcing bad loan deals, forced most companies to market high risk loans.
With Freddie and Fannie standing by to ‘reduce’ the risks to all of the good loans by purchasing the risky ones, what could go wrong?
Government intervention is what caused this recession/depression, and nothing else.
A lot work off commission.
Top producer will make up to 10k a day strictly off sales commissions.
Why would they stay if they are capped and can only pull 1.9k a day or so.
So here’s the part that matters. We taxpayers (well, Bernanke, Paulson and Obama) have injected billions into Citi to keep it afloat. Like it or not, there are some really tallented people at Citi and if they leave, how do we ever get our billions paid back?
They’re hiring publicists and retiring to the country to tell their stories.
Then how'd Citi get in so much difficulty ~
I think it would be better to GET SOME NEW talented people and dump the old ones eh!
You miss the point. They worked as a team. They failed as a team. Time for a new team.
I wonder if this has anything to do with bonuses.
A large part of executive/sales compensation can involve bonuses.
Perhaps the Bank of Obama put caps on bonuses and this is their only way to get around it?
Don’t know, just thinking out loud.
I can't speak for every financial institution listed here. My impression was the sector was imploding bigtime and I don't believe that CITI executives have anywhere to go...I've got a frat brother that works at a senior level at Wells. He says they are trying to absorb Wachovia, mostly outsourcing and haven't hired anyone (other than a few clerks, I imagine) particularly at the senior level.
Sure one or two CITI executives MAY have found a "better" slot, but 99% of the financial sector is glad they have a job and unemployment is rampant. I don't believe the brain drain story. Not for a second.
According to their 10K, the person in charge of capital markets (where all of the mortgage losses occured) made $12 million last year. The senior managers Citi has never been bashful about paying themselves, and they are experts at stiffing the people in the trenches. I might add...Vikram Pandit is utterly incompetent.
Must be a new type of affirmative action sort of thing.
buses = businesses, just damn!!
It doesn't really work that way in the banking world. Each group is its own profit center. If the bond traders do well but the equity traders do not, the equity traders don't get a piece of the bond trader pot.
So, if I was a banker in profitable division who was seeing my salary capped due to the failure of other divisions, I'd be threatening to jump ship too.
This reminds me of the story about some Iranian ministry sending some people the bill for the bullets with which they killed the family’s relative. About the same idea....
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