Now for some cheery news from the banking sector.
Bond traders at JP Morgan and Citigroup look likely to share the fastest-shrinking bonus pools on Wall Street, according to estimates compiled by Bloomberg before the start of the big six US banks’ reporting season this week.
Still, if that seems like someone has started to see sense on bonuses, think again. They will be lower only because some divisions of the banks are doing less well. The financial data provider predicts that JP Morgan’s fixed-income trading revenue fell by 14% to $10.6bn during the first nine months of 2014. Similarly, Citigroup’s revenues in this field are thought to be down by $9.72bn.
Anyway, looking at it the other way around, there is some good news for Manhattan’s Lower East Side, where the city’s tailors will be hoping to shift an extra few pinstripe suits and flash suspender sets. There may be some extra business for them because, overall, the banks are expected to report $15.9bn in combined third-quarter profit, which is a 19% increase on last year. Investment bankers at Morgan Stanley look set to share the largest bonus pot. Isn’t life just grand?
This article was written by Simon Goodley, for theguardian.com on Sunday 12th October 2014 11.35 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010