Tag Archives: Bankers

Bankers lose over $1 billion in bonus value as stocks drop

I’m certainly not shedding a tear for the bankers..

For bankers, getting a bonus in stock has become an albatross.

Employees at Goldman Sachs Group Inc. GS, -2.07% have been hit with more than $400 million in paper losses thanks to a plunge in the value of stock bonuses paid out early last year, according to a Wall Street Journal analysis.

Similar declines have been felt by advisers, traders and other staff across Wall Street.
J.P. Morgan Chase & Co. JPM, -1.65% , Bank of America Corp. BAC, -2.75% , Citigroup Inc. C, -2.30% and Morgan Stanley MS, -0.88% haven’t yet reported how much stock they granted a year ago as part of employees’ bonuses, but the declines in banks’ share prices–based on their averages from January 2015–have been equally severe, ranging from a 32% drop at Morgan Stanley to a 17% decline at Goldman. (J.P. Morgan, an exception, is up 2%.)

The decrease is providing the first pocketbook test of the new bonus practices banks established in the wake of the 2008 financial crisis. “It’s a big deal,” said Alan Johnson, managing director of pay consultant Johnson Associates. “The business is down, the market is down, the stock is down. It couldn’t come at a worse time.”

Read on.

Why Is The US Treasury Quietly Ordering “Survival Kits” For US Bankers?

Survival kits?? WTH???

As Free Beacon reports,

The Department of Treasury is seeking to order survival kits for all of its employees who oversee the federal banking system, according to a new solicitation.

 

The emergency supplies would be for every employee at the Office of the Comptroller of the Currency (OCC), which conducts on-site reviews of banks throughout the country. The survival kit includes everything from water purification tablets to solar blankets.

 

The government is willing to spend up to $200,000 on the kits, according to the solicitation released on Dec. 4.

 

The survival kits must come in a fanny-pack or backpack that can fit all of the items, including a 33-piece personal first aid kit with “decongestant tablets,” a variety of bandages, and medicines.

 

 

The kits must also include a “reusable solar blanket” 52 by 84 inches long, a 2,400-calorie food bar, “50 water purification tablets,” a “dust mask,” “one-size fits all poncho with hood,” a rechargeable lantern with built-in radio, and an “Air-Aid emergency mask” for protection against airborne viruses.

 

Survival kits will be delivered to every major bank in the United States including Bank of America, American Express Bank, BMO Financial Corp., Capitol One Financial Corporation, Citigroup, Inc., JPMorgan Chase & Company, and Wells Fargo.

The agency has roughly 3,814 employees, each of which would receive a survival kit. The staff includes “bank examiners” who provide “sustained supervision” of major banks in the United States.

Read on.

Death of banker under mysterious circumstances makes 36 in 2014: Latest victim, ING banker

This has not been newsworthy which need to be…

It’s been a year of American and international bankers dying under mysterious circumstances, or taking their lives in tragic or questionable ways, and now ZeroHedgehas the story of the 36th victim of the year.

Impeccable. Sporty. Cared for. Successful. Just some qualifications that are attributed to the 52-year-old Belgian Geert Tack Haaltert.

Geert Tack worked as a private banker for ING and managed portfolios of wealthy clients. The Belgian had a lot of respect in the financial world and was known as an up and top professional. His sudden disappearance was also smashed like a bomb. “If Tack himself was having trouble he has managed to keep it well hidden,” say colleagues.

The report from ZeroHedge outlines several mysterious behaviors Tack demonstrated in the days before his disappearance, including leaving his laptop and cell phone at home the day he disappeared, which was a work day.

Source: ZeroHedge

This is the 36th Dead Banker of the year (via Beforeitsnews):

1) David Bird, 55, long-time reporter for the Wall Street Journal working at the Dow Jones news room
2) Tim Dickenson, a U.K.-based communications director at Swiss Re AG
3) William Broeksmit, 58, former senior manager for Deutsche Bank
4) Ryan Henry Crane, age 37, JP Morgan
5) Li Junjie, 33, Hong Kong JP Morgan
6) Gabriel Magee, 39, age JP Morgan employee
7) Mike Dueker, 50, who had worked for Russell Investments
8) Richard Talley, 57, was the founder and CEO of American Title (real estate titles)
9) James Stuart Jr. 70, Former National Bank of Commerce CEO was found dead in Scottsdale, Ariz
10) Jason Alan Salais, 34 year old IT Specialist at JPMorgan since 2008
11) Autumn Radtke, 28, CEO of First Meta, a Singapore-based virtual currency trading platform
12) Eddie Reilly, 47, investment banker, Vertical Group, New York
13) Kenneth Ballando, 28, investment banker, Levy Capital, New york
14) Joseph A. Giampapa, 55, corporate bankruptcy lawyer, JP Morgan Chase
15) Jan Peter Schmittmann, 57, voormalig topbestuurder ANB/AMRO, Laren, Nederland
16) Juergen Frick, 48, CEO Bank Frick & Co AG, Liechtenstein
17) Benoît Philippens, 37, directeur BNP Parisbas Fortis Bank, Ans, België.
18) Lydia…, 52, bankier Bred-Banque-Populaire, Parijs
19) Andrew Jarzyk, 27, bankier, PNC Bank, New York
20) Carlos Six, 61, Hoofd Belastingdienst en lid CREDAF, België
21) Jan Winkelhuijzen, 75, Commissaris en Fiscalist (voormalig Deloitte), Nederland.
22) Richard Rockefeller, 66, achterkleinzoon elitebankier John D. Rockefeller, Amerika
23) Mahafarid Amir Khosravi (Amir Mansour Aria), 45, bankeigenaar, zakenman en derivatenhandelaar, Iran
24) Lewis Katz, 76, zakenman, advocaat en insider in de bancaire wereld, Amerika
25) Julian Knott, Directeur Global Operations Center JP Morgan, 45, Amerika
26) Richard Gravino, IT Specialist JP Morgan, 49, Amerika
27) Thomas James Schenkman, Managing Director Global Infrastructure JP Morgan, 42, Amerika
28) Nicholas Valtz, 39, Managing Director Goldman Sachs, New York, Amerika
29) Therese Brouwer, 50, Managing Director ING, Nederland
30) Tod Robert Edward, 51, Vice President M & T Bank, Amerika
31) Thierry Leyne, 48, investeringsbankier en eigenaar Anatevka S.A., Israël
32) Calogero Gambino, 41, Managing Director Deutsche Bank, Amerika
33) Shawn D. Miller, 42, Managing Director Citigroup, New York, Amerika
34) Melissa Millian, 54, Senior Vice President Mass Mutual, Amerika
35) Thieu Leenen, 64, Relatiemanager ABN/AMRO, Eindhoven, Nederland
36) Geert Tack, 52, Private Banker ING, Haaltert, België

Bankers can soon cash in on deferred recession era bonuses

When it comes to bonuses, the waiting on Wall Street is about to pay off.

A rash of bonuses that were deferred in the wake of the financial crisis will begin to vest in the coming weeks, resulting in vastly larger paydays than if bankers and traders had been paid in cash, according to a report by Crain’s New York Business.

After a challenging 2009, Goldman Sachs cut average employee pay by 13 percent, but to dull the pain, granted staffers $3.6 billion worth of shares that couldn’t be sold until January 2015, according to a regulatory filing.

The stock is currently valued at $5.1 billion, thanks to a 40 percent-plus run-up in Goldman stock to Friday’s close at $188.41.

Read on.

Two greedy RBS bankers who used their jobs to run £3million property fraud escape jail because judge says THEY ‘have suffered’

  • Andrew Ratnage, 50, and his boss Raymond Pask, 54, guilty of scam
  • Pair set up fake companies and used relatives’ names to get mortgages 
  • Bankers borrowed £3m and bought five homes in London, Kent and Essex 
  • All the cash came from their own bank NatWest, which is owned by RBS 
  • Judge spared them jail because they ‘suffered’ and were ’embarrassed’ 

Two ‘greedy’ Royal Bank of Scotland bankers who masterminded a £3million property fraud were spared jail after a judge decided they had already ‘suffered’ enough.

Andrew Ratnage, 50, and his boss Raymond Pask, 54, were both earning more than £100,000-a- year but wanted to make more money using a mortgage scam.

Together they set up a series of fake companies in the name of Pask’s family and then made applications for loans to ‘tart’ up homes and sell them at a profit.

The bankers, who were based at NatWest’s office in Romford, Essex, a bank owned by RBS, then fraudulently borrowed just under £3million over five years

Read more: http://www.dailymail.co.uk/news/article-2851703/Two-greedy-RBS-bankers-used-jobs-run-3million-property-fraud-escape-jail-judge-says-suffered.html#ixzz3KQpilXHa

BUSTED: Bankers Caught On Tape, Joking About Bailout, And How They’d Never Pay It Back

The Irish Independent, a Dublin-based newspaper, has uncovered tapes of an internal phone conversation from September 2008 between two executives at Anglo Irish Bank during its bailout deal and they sound pretty scandalous.  The Irish Independent points out that the recordings show they misled the Central Bank.

The executives from the recording have been identified as John Bowe (head of the bank’s capital markets) and Peter Fitzgerald (director of retail banking).

However, Bowe “categorically denied” that he misled the Central Bank and Fitzgerald, who wasn’t involved in discussions with regulators, said he was unaware of any intention to mislead, the report said.

Either way, the newly revealed recordings are still embarrassing.

Here are some partial excerpts (via the Irish Independent):

The two bankers begin their conversation jokingly comparing themselves to being able to walk on water and drink beer out of both hands.

John Bowe: “Hello”

Receptionist: “John I have Peter Fitz for you.”

Bowe: “Oh yeah, OK.”

Bowe: “As me granny used to say, you must be therapeutic…”

Peter Fitzgerald: “What does that mean? Can I work the computer is it? (Both laugh)

Bowe: “Therapeutic. Therapeutic…I was just ringing you.”

Fitzgerald: “I’m ambidextrous as well. It means I can walk on land and water.” (More laughter)

Bowe: “You can drink, you can drink beer out of both hands…” (laughter)

Then they get down to business.  Bowe tells Fitzgerald that they met with the Irish Financial Services Regulatory Authority (IFSRA) the previous day about getting €7 billion.  They laugh how they will never be able to pay it back.

Bowe:  “So we went down … and we basically said. In Central, yeah. And I mean, to cut a long story short we sort of said. ‘Look, what we need is seven billion euros…and we’re going to give you and we’re going to give you, what we’re going to give you is our loan collateral so we’re not giving you ECB, we’re giving you the loan clause.

“We gave him a term sheet and we put a pro not facility together and we said that’s what we need. And that kind of sobered up everybody pretty quickly, you know.”

Fitzgerald: “Yeah.”

Fitzgerald: “And is that €7 billion a term?”

Bowe: “This is €7 billion bridging.”

Fitzgerald: “Yeah.”

Bowe: “So … so it is bridged until we can pay you back … which is never.” (Both laugh)

Then they joke how the regulators would need to change their underpants after hearing the terms of that deal.

Bowe: “So under the terms that say repayment, we say; ‘No …'” (laughter)

Fitzgerald: (Laughing) “None…just none. Not applicable. OK and what did he say? ‘I need a change of underwear?’

Fitzgerald: “Jesus that’s a lot of dosh … Jesus f—–g hell and God … well do you know the Central Bank only has €14 billion of total investments so that would be going up 20 … Gee..that would be seen.

Bowe: (Laughing) “There was a bit of that … there was a bit of that.  ‘And how would we do that? We would need to give you … we need to … ‘Jesus you’re kind of asking us to play ducks and drakes with the regulations.’ And we said: ‘Yeah.’ We said: ‘Look what we are telling you is if we get into difficulties, we have 100,000 plus lump sum depositors in Ireland all of whom would be very vocal.'”

Fitzgerald asks Bowe how he came up with the 7 billion figure.  Bowe responds that like then-CEO David Drumm, he picked it out of his “arse.”

Fitzgerald: “Ah we are, yeah, yeah and, em, what, how did you arrive at the seven?

Bowe: “Just, as Drummer would say, ‘picked it out of my arse’, you know. Em … I mean, look, what we did was we basically said: ‘What is the amount we can securitize over the next six months?’ And basically say to them: ‘Look our problem is time, it’s not our ability to create the liquidity, the enemy is time here.'”

Fitzgerald: “Yeah.”

Bowe: “So we can rebuild, in other words, we can rebuild the liquidity off our loan book, but what we can’t do, we can’t do it now and the balance sheet’s leaking now.”

Bowe tells Fitzgerald that they actually need more money than the 7 billion figure.

Bowe: Yeah and that number is seven, but the reality is that actually we need more than that. But the strategy here is you pull them in, you get them to write a big [check] and they have to keep, they have to support their money, you know.”

Fitzgerald: “Yeah, yeah, yeah, yeah, yeah. They’ve got skin in the game and that’s the key.”

Bowe: “They have and they have invested a lot. If they saw, if they saw, the enormity of it up front, they might decide, they might decide they have a choice. You know what I mean? They might say the cost to the taxpayer is too high. But … em … if it doesn’t look too big at the outset…if it looks big, big enough to be important, but not too big that it kind of spoils everything,

Fitzgerald: “Yeah, Yeah.”

….

You can listen to the tapes here: http://www.businessinsider.com/anglo-irish-bank-tapes-2013-6#ixzz2YESgLCwg

BANKERS TOLD TO WATCH WHAT THEY SAY AT BAR

In the boom years, conspicuous consumption in the bars was investment bankers’ natural release from long hours in the office. Now the office sits on their shoulders while they sup.

After a series of banking scandals, banks’ compliance teams are ramping up their checks on every aspect of office life, such that even social outings are under scrutiny, with training sessions on what you can and can’t say over a beer with colleagues.

“Everyone is more paranoid, that’s for sure,” said one department head at a European investment bank, where the trading floor is festooned with posters reminding staff to report any suspicious behavior.

At his bank and at least one other European firm, executives said they were being asked to take part in an increasing number of behavioral coaching sessions, including simulations of pub outings.

Rest from Reuters here…