The end of investment banking by British banks

[BrilloPad]

I know British banks have been only small players in IB for a while. But we could be nearing the end.

Looks like there are going to be severe clampdowns on bonuses to IB staff by british banks : so all the good staff will go elsewhere. At the moment there are only jobs elsewhere for top earners : but that will change.

So there is even less reason for IBs to remain in LOndon : will they look at relocating elsewhere? If so, where will they go?

[Liability]

It is all just temporary rubbish

The cash they will be awarded in other ways.

Paid Houses, Cars, etc - HIGHER salaries - etc

Where there is vast sums of money involved - it will always occur.

Dont be fooled mate by all what we have been reading over the past few days on Bonus culture.......give it another 12-18 months and itll be back in some way

[SantaClaus]

I know British banks have been only small players in IB for a while. But we could be nearing the end.

Looks like there are going to be severe clampdowns on bonuses to IB staff by british banks : so all the good staff will go elsewhere. At the moment there are only jobs elsewhere for top earners : but that will change.

So there is even less reason for IBs to remain in LOndon : will they look at relocating elsewhere? If so, where will they go?

Frankfurt? They've been dying to take over as Europe's financial centre for years.

[BlasterBates]

They're clamping down everywhere so no where to go. The Wells Fargo CEO published a full page ad complaining about the US government clamp down on bonuses. The fact is this incredible expansion of investment banking was nothing more than a "Ponzi" scheme anyway. So banks will go back to doing what they should have been doing anyway. Apparently hedge funds are going to more or less disappear.

[Ravello]

I know British banks have been only small players in IB for a while. But we could be nearing the end.

Looks like there are going to be severe clampdowns on bonuses to IB staff by british banks : so all the good staff will go elsewhere. At the moment there are only jobs elsewhere for top earners : but that will change.

So there is even less reason for IBs to remain in LOndon : will they look at relocating elsewhere? If so, where will they go?

That's all the good staff that invested in toxic debt at ratios of upto 20:1 of the bank's holdings right?

Replace them all with a toddler and a 'dartboard of investment'.

[DimPrawn]

Are these the same "good staff" that drove the bank into insolvency and required taxpayers money to remain solvent?

I'm happy for the bonuses to be paid once the billions pumped in have been paid back with interest.

HTH

[London75]

I think all bonuses should be paid in 5 year stock options (not sure that's the right term, I'm a geek not a banker)

ie the most benefit will be earned by the individual for creating a sustainable and resilient company with profits for the future rather than quick win.

Make the bonuses even bigger if you want, I don't think the size would matter if the individual is always striving for growth in 5 years time. They will have little choice but make sure the company survives and continues to do well.

No doubt it would get corrupted in some way so I'll shut up, just seemed like a good idea.

[BrilloPad]

That's all the good staff that invested in toxic debt at ratios of upto 20:1 of the bank's holdings right?

Replace them all with a toddler and a 'dartboard of investment'.

Are these the same "good staff" that drove the bank into insolvency and required taxpayers money to remain solvent?

I'm happy for the bonuses to be paid once the billions pumped in have been paid back with interest.

HTH

There are quite a few different areas in an IB. The ones who did all the credit stuff were only a small part. There are also mergers, company advisors, a variety of traders dealing in stocks, fixed income, interest rate products. I bet I have missed a few areas!

There are a few traders around who make money consistently every year : and are up most months. Those traders can walk into a job at most IBs.

If they are not at a UK bank they will be snapped up by another outfit. Maybe a foreign IB. Maybe a sovereign wealth fund.

[DimPrawn]

There are quite a few different areas in an IB. The ones who did all the credit stuff were only a small part. There are also mergers, company advisors, a variety of traders dealing in stocks, fixed income, interest rate products. I bet I have missed a few areas!

There are a few traders around who make money consistently every year : and are up most months. Those traders can walk into a job at most IBs.

If they are not at a UK bank they will be snapped up by another outfit. Maybe a foreign IB. Maybe a sovereign wealth fund.

As their employer is insolvent and living on state handouts, whether one or two people did a good job is irrelevant. Pay back our tax money, then pay bonuses to staff. If you can't afford to keep them, tough tulip.

[thelace]

Makes you wonder what banks are hiring at the minute?

I can't imagine the Banking Headhunters being rushed off their feet at the minute!