The Student Room Group

Scroll to see replies

Reply 1
TomTeeTom
In light of recent circumstances within banking. With many things such as securitisation down the drain which made people loads of money. Do you lot think the days of big bonuses are over?


It wont last for ever, and why cut bonuses, if a tarder is earning you millions and you are paying them £30k im sure a small £5k bonus wont hurt...
Reply 2
TomTeeTom
In light of recent circumstances within banking. With many things such as securitisation down the drain which made people loads of money. Do you lot think the days of big bonuses are over?


In fairness, securitisation needed to be canned. It was ridiculous at times, with very little risk management and often poor understanding of what was actually being created.

For example, does anyone know how a CDS on a CDO / CLO works? Not worth the paper it's written on.


(and before someone criticises this as naive or whatever, I have worked there)
for now, yah...... for the future, hope not
Reply 4
no because £250,000 is still a big bonus!
you have to remember people before were getting ridiculous ones. the maximum will probably be more in the quarter of a million region
Probably not for the rich, ironically.
Reply 6
alixxxxxx1
no because £250,000 is still a big bonus!
you have to remember people before were getting ridiculous ones. the maximum will probably be more in the quarter of a million region


Lol not at all
Reply 7
Haz313
Lol not at all


why do you say that
Reply 8
ITT: People who do not know how bonuses work in banks.
Apparently bonuses are going to be made more long term in the future (more tied up in stocks/shares that you can't cash in for a few years so they're based more on long term performance).

But I hope this isn't the case and by the time I get into the industry, (if that's still what I want to do) the short term greed fueled bonus culture will be back!
Simple answer;

Now? Yes.
When I get there? No.
TomTeeTom
In light of recent circumstances within banking. With many things such as securitisation down the drain which made people loads of money. Do you lot think the days of big bonuses are over?


Securitisation is not down the drain - do you even know what it is? Or have you just finished watching 'that BBC show bout the City and stuff yeahzz init' and are now thinking and acting like you know what it means........nice one mate :rolleyes:

Sorry if this has come across as 'mean' but frankly I hate people like you who watch pandered down rubbish for the masses and then b/c a word is used or explained through some dumbed down fashion, start throwing it around like you know and understand what it means - I'm not expecting you to go and read a whole thesis on the securitisation industry by any means, but at least have a reasonable idea of what it is about - it is fundamental one can argue to any functioning economy and whilst activity may have slowed in certain sectors, it will never be down the drain so to speak (just indeed of reviving)

edit: too quick on the reply there Tom - although this is the same message you have quoted, bar 1 or 2 spelling errors I noticed

Benh842
Have you noticed if you put the word "Bonus" in a thread title idiots come and invade our little corner of purity.


Amen.
Reply 12
Inter-Company
(yes I'm sure you don't) :rolleyes:

To be honest thats even worse, as this means you actually went out and researched what securitisation was and missed what it is fundamentally is about :s-smilie:



Why in god's name are you using your age an excuse? If I'm say 22 and say quantum physics is a load of nonsense and thus is effectively 'down the drain' in a physics forum (as I have no idea what it is about) - and then use my age as an excuse as to why I have made such a moronic statement, it is just idiotic (which is frankly what you have done)

You being 17 believe it or not, does not mean you cannot learn more about the subject before making such a stupid statement



I replied b/c the logic behind your statement was the frankly idiotic assumption that secrititsation is effectively dead :rolleyes:........don't worry I'm sure there will be another 100 or so jobs with enough £$£$£$ up for grabs (although I would sort out my thought/logic process first if I was you)

Well i'm sorry but i think age does come into it when you expect me to understand a concept which few people in the world fully understand ( and i'm sure you're not one of these people). I dislike people like you who feel some kind of superiority because you are a bit more wised up on something considering your on your 3rd year of your degree it would be expected.

The reason i brought securitisation into it was because it was one of the factors which lead to big bonuses so effectively with the reckless use of it being decreased i was asking if bonuses will be decreased.

Also one more thing you say you're a third year E&M student yet you were in the TSA forum some time ago applying for E&M. Just curious :rolleyes:
I'm almost a little scared to post :frown:

Put simply, no, bonuses will not stop, and even if they were completely banned* Businesses would find a way around them.
However Businesses may choose to cap bonuses under the current economic climate, but nothing is permanent in the world of business.

*EDIT: Not that I ever think they would be.
cru_jo0
It wont last for ever, and why cut bonuses, if a tarder is earning you millions and you are paying them £30k im sure a small £5k bonus wont hurt...

Because the government is imposing hefty restrictions on all IBs across the country - such that they no longer thrive as businesses, but rather, as regulatory bodies.
cru_jo0
It wont last for ever, and why cut bonuses, if a tarder is earning you millions and you are paying them £30k im sure a small £5k bonus wont hurt...


Better explanation actually: those who received bailouts are required to impose bonus restrictions, as part of the terms and conditions.
Let's cut out the spam please, gentlemen, and discuss the original subject.
Reply 17
Pillar of Autumn
Better explanation actually: those who received bailouts are required to impose bonus restrictions, as part of the terms and conditions.



No, northern rock is paying all employees 10% this year and 20% every year after.
Pillar of Autumn
Because the government is imposing hefty restrictions on all IBs across the country.


Really? Care to explain how these hefty restrictions manifest themselves?
Reply 19
alixxxxxx1
no because £250,000 is still a big bonus!
you have to remember people before were getting ridiculous ones. the maximum will probably be more in the quarter of a million region


How the hell can you possibly justify your comments? I think bonuses will be smaller in the short-medium term as banks may find it difficult to be as profitable as over the last few years, with banks having to keep more capital, no SIVs, recession (with the associated credit card/mortgage defaults etc) and I'm sure investors are going to be much more weary of structured credit products for a long time (which are just a couple of reasons I can think of now, but I'm sure there are many more). But a comment like "a quarter of a million will probably be the maximum bonus" is clearly ridiculous.

Latest