Last week it was reported that in 2007, executives with Munich Re subsidiary Ergo Versicherungsgruppe came up with the idea to throw a party for top performing sales executives at a bathhouse, featuring a bunch of prostitutes for their consumption. Because such events have the potential to devolve into mass chaos, with buyers and sellers running amok and no one knowing who’s down for what, the Germans had the bright idea to keep order via color-coding. Each hooker would wear an armband, with yellow indicating “available for sexual favors,” red indicating that she was a hostess and white indicating that she was “reserved for executives and top agents.” Additionally, the girls also received a “stamp” following each visit to one of the curtained canopied beds, so party-goers could know how many times she’d been “frequented.” When the story came out, a spokesman for the company said in a statement that incentive trips for successful salespeople “definitely don’t usually proceed the way it’s described.” Apparently he was just kidding because according to Ergo employees, that’s exactly how they “usually” proceed, and were going to keep proceeding, until someone had to go and ruin thing for the whole group. Read more »
Color-coded armband-organized. Read more »
When one considers the many, many reasons to admire Stephen Schwarzman, difficulty arises in keeping the list to a manageable length. An abridged version, a mere fraction of his attributes, would include building Blackstone with own two hands, his support of literacy, his vision and execution in creating Yale’s first Ballet Society, his passion as it relates to the carried interest debate, on which he is not afraid to speak his mind, and his undying commitment to do right by clients.
Today another bullet point must be added, with regard to this: Read more »
Cuts going down circa now. Read more »
Germany said “auf Wiedersehen” to naked short selling, but it appears the ban is doing nothing but raising fears that Europe is in the midst of a financial crisis of its own. Traders are already clamoring to close out open positions, but who knows if the ban will really prevent a financial calamity. Read more »
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.”