Skip to main content

As it turns out, the complete shutdown of the global economy is bad for the financial services industry. It’s worst for private equity, of course, but the rest of you shouldn’t be celebrating, unless you really hate private equity, in which case, carry on, Leon Cooperman.

Johnson sees the coronavirus hitting commercial bankers the hardest as a wave of defaults on all kinds of loans will punish retail banks and shrink bonuses by 25 to 30 percent.

Investment bankers, who have seen dealmaking stalled by the shutdown, will fare only slightly better, with compensation dropping from anywhere between 10 percent and 25 percent.

As to hedge funds, Johnson sees a drop from 10 to 15 percent…

“Looking around, a lot of people should see keeping their jobs as a bonus this year,” said one hedge fund trader. “Considering how badly some funds played the downturn, I’m shocked that bonuses are only going to be down 15 percent. I’d take that right now.”

Wall Street bonuses to shrink as much as 30 percent amid coronavirus [Thornton/N.Y. Post]

Related

shreddeddollars

Bonus Watch ’20: Your Year-End Windfall Is Looking Sickly

Coronavirus has a 10-month incubation period in bonus checks.

This would be a start. By The original uploader was Hephaestos at English Wikipedia (Transferred from en.wikipedia to Commons.) [Public domain], via Wikimedia Commons

Bonus Watch ’22: You Didn’t Spend All Of Your 2021 Windfall Already, Did You?

Because this years’ is gonna be a lot more modest, and feel even more so.

(Getty Images for Yahoo Finance)

Bonus Watch ‘20: Barclays I-Bankers

Jes Staley loves you guys, he just doesn’t love paying you guys.

falcone

Bonus Watch '20 (And Beyond?): Local Man Facing Asset Freeze, Lawsuits Over Debts Doing So Well He Needs No Bonus

Phil Falcone is really just disappointed in himself and not at all making a desperate gambit to keep his job.

Photo: Getty Images.

Layoffs Watch: Credit Suisse Prime Brokers

Turns out you don’t need them if you’re not offering prime brokerage services anymore.

frankenstein

Bonus Watch ’20: Your Bonus Is No Torches And Pitchforks At Your Front Door

BriMoy & co. are gonna hold on to what’s rightfully yours for your own good.

moynihan

This Is The Most Trusted Face On Wall Street

Scared and confused hedge funds flock to Brian Moynihan’s comforting research-filled bosom.

coronavirus

First Hedge Fund Dies Of Coronavirus

If you’ve been in contact with Solus Alternative Asset Management’s flagship, please lock your door right away and swallow the key.