Cuts going down circa now. Read more »
From the mailbag: Read more »
First off, Greg doesn’t want to be famous and he says he’s “looking forward to being anonymous again.” The be-sideburned trader (in Greg Zuckerman’s The Greatest Trade Ever his ‘burns are described as “unusually long and thick” and in Michael Lewis’s The Big Short as those of a “1970s porn star”) announced this desire in a recent profile with which he not only cooperated but sat for on two separated occasions and spoke on the record, the genius of which is yet to reveal itself. Second, those hilarious “I’m short your house” shirts he had made back in ’06 when he was one of the few making hugely bearish bets on the housing market? He didn’t come up with that tag-line. “It’s juvenile. It’s funny in March of ’06 when everybody calls you Chicken Little. It’s not funny now,” he told the Observer. “It wasn’t my idea—that’s a fact, on my kids’ lives. … I definitely did not, on my kids lives. Somebody gave it to me.” Third, to those who think Lippmann comes off as “dickish” in Zuckerman and Lewis’s narratives, that’s just plain wrong. Read more »
From the mailbag:
Zee Germans at Deutsche are delaying IB analyst comp a month, with payouts coming Aug. 13.
Did you think Goldman Sachs and Morgan Stanley were going to be the only ones subjected to cavity searches by the US government? Think again, mon chi-chis! Charlie Gasparino reports that you should all be girding your loins.
The government has ramped up its investigation of Wall Street’s sale of toxic securities during the financial crisis to include firms other than Goldman Sachs and Morgan Stanley. Sources tell FOX Business that the Securities and Exchange Commission’s most active investigations so far also include Deutsche Bank and Citigroup, two of the biggest packagers of the toxic debt, known as collateralized debt obligations, that are at the center of the government’s interest.
Environmentalists thought they had found a “market solution” to controlling carbon emissions. Then energy traders have to go screw it all up.
German prosecutors raided Deutsche Bank and RWE, Germany’s second-biggest utility, today in a wide-ranging probe of tax-evasion and generally shading dealing in the European carbon emissions market.
Most Deutsche Bank employees are still feeling pretty unappreciated for their suffering. Luckily, today, a hint from the inside has been communicated vis-a-vis how one might create a better situation for him or herself as it relates to pay next year. Take note:
Deutsche Bank AG, Germany’s biggest bank, paid 2.2 billion euros ($3 billion) in bonuses last year to employees who can conduct “high-risk” business.
The lender’s “risk-taker population,” or “employees who can create high-risk positions,” received 921 million euros in cash bonuses, 961 million euros in deferred equity awards and 317 million euros in restricted incentive awards, according to the company’s compensation report published today. The bank, which declined to identify how many employees are defined as risk takers, gave the group 367 million euros in fixed pay.
What are they doing about it? Considering their options, that’s what.
According to people familiar with the matter, a number of employees — including some of the bank’s most talented and highest-paid people — are feeling that they aren’t being fairly compensated for their work in helping the bank weather the financial crisis without having to be bailed out by the German government.
Sources said the frustration has the potential for creating a real headache for CEO Josef Ackermann, who runs the risk of losing talent in the bank’s trading operation, which is considered the second-most profitable behind Goldman Sachs. One group of bond traders that has already left over pay includes Jerry Cudzil and David Malvern, who were part of a team that took over a book of business from Deutsche Bank’s former head of credit trading, Boaz Weinstein.
Apparently management thinks it’s paying its employees just fine but is the victim of “an unusual wave of poaching from rivals like Morgan Stanley, Citigroup and Credit Suisse.”
From an unhappy German:
Not a single investment banker I spoke with from any industry or product groups was happy with their number. A bonus of more than 140 resulted in 30-35% deferred compensation. Third year associates getting promoted were told they had to pay for their promotion and were “taxed.” The ranges for IB associates (just bonus) are as follows: