Morning Coffee Nov 05 2010

Trader Bonuses to Decline This Year

By julie steinberg

When it comes to bonuses this year, traders will bear the brunt of the bad luck.

Bond traders will see their bonuses decline as much as 25% to 30% from last year's payout, and stock traders will see a slightly smaller decrease of 20% to 25%.

Why are traders going to suffer this time around? Simple: Revenue at trading divisions at banks has plummeted 12% this year, which means employees aren't taking home as much. Low profits translate to lower bonuses.

Others in finance are more fortunate. Asset management firm employees can expect gains of 5% to 15%, while retail banks will fork out increases of 5% to 10%. (MarketWatch)

Related: Top Executives Will See Bonus Increases

Mortgage Hiring (FINS)
Slow and steady wins the race, at least when it comes to mortgage servicing. Foundation Financial Group, which took its time growing, is hiring in many markets across the U.S.

Roaring Tiger (Reuters)
Northern Ireland will play host to 500 Citigroup hires. Economic development has skyrocketed in the region, and Citigroup will capitalize with new hires over the next five years.

Popping Bubbles (Reuters)
The Fed announced the creation of the Office of Financial Stability Policy and Research, which will seek out economic bubbles and identify risks to the system. Officials from various agencies will staff the new office, but it's possible that there may be additional hiring.

What's Done is Done (WSJ)
Republicans might be eager to overturn their predecessors' rules for the finance community, but penetrating the 2,300-page bill might be more difficult to change than they expect. The President is likely to veto any major changes.

Looking Outside (WSJ)
International enrollment at U.S. business schools fell from 26.5% in 2008 to 24.8% in 2010. Because B-schools are only legit if they've got new blood from overseas, schools are stepping up their efforts to recruit outside the country. Maybe they should give acceptance bonuses. Or iPads.

Get Through to Your Boss (AccountingWeb)
If you're trying to get your boss to like you, take the initiative. Present ideas and make him or her realize how important you are to the company. Also, ask a few questions now and then. Knowing what his kids' names are or where he vacations will show you're interested in him as a human being.

Not Coca-Cola (Danwei)
Everyone in finance in Hong Kong apparently uses the same cocaine dealer. All of their phones beep on Friday afternoon once the dealer has supplies in. Cocaine has only recently become popular in finance on the island: Coke running didn't begin in earnest until the mid 00s.

When Worlds Collide (Dealbook)
Brush that dirt off your shoulder, Vikram. You got to party with Jay-Z. The two were honored at a dinner in Manhattan hosted by the New York Police and Fire Widow's and Children's Fund. Wonder if they chatted about Benjamins (specifically, who has more).

List of the Day: Biggest Private Companies
Sometimes bigger is better. Larger firms can bring on more people, and some of these companies have been doing exactly that. Here are some of America's largest private companies.

7. PwC

9. E&Y

21. Fidelity Investments

(Source: Forbes)

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