Doughnut bonuses may be back for some.
Bloomberg News reports that the troubles of French banks swept up their traders last week, with both BNP Paribas and Societe Generale weighing bonus cuts after a downturn that’s hit some of the world’s biggest financial firms.
BNP may hand lower or zero balances to many traders in its global markets unit after posting trading losses and shuttering some businesses, people with knowledge of the matter said. A majority of staff in credit and rates trading could receive no discretionary awards, the people said, asking not to be identified as the discussions are private.
At Societe Generale, steep cuts in traders’ bonus pool could be implemented for the second straight year, according to people with knowledge of the matter. Bonus levels will likely fall as much as a quarter, mirroring the levels of cuts a year ago the people said, asking not to be identified because the deliberations are private.
In the meantime, Bloomberg also reports that Societe Generale is considering closing its proprietary-trading unit, people familiar with the matter said, a week after French rival BNP Paribas decided to shut its operation.
SocGen executives are reviewing the future of the Descartes Trading division, which makes risky bets with its shareholders’ funds, said the people, who requested anonymity as the details are private. The bank may decide to close the unit as the business has struggled to make profits, the people said.