The reality of "zero bonuses" is setting in for many as top banks cut pay, says one recruiter. [NY Times] European bankers could see bonuses drop between 20 and 30 percent this year. [FT] Goldman Sachs will strengthen its wealth management business by adding 200 jobs over the next few years. [On Wall Street] Hedge fund FrontPoint Partners will lay off 28 non-investment employees. [Pensions and Investments] Business schools are becoming relevant again, as... Read more

Morgan Stanley will pay lower bonuses this year. James Gorman has made this clear. They will reputedly be down 10-30 percent. Senior staff will suffer most. So will traders and back office staff. So, will Morgan Stanley bankers accept a pay cut? On a mean basis, employees at Morgan Stanley international were worse rewarded than other U.S. bank staff in London last year. Average compensation per head was $303,000 At Goldman... Read more

We already know that the eFinancialCareers global bonus survey found half of Wall Street's professionals expect their bonuses to grow this year. No surprise that a third of them credit their own performance for the uptick. Another third said their employer’s improved profit is the reason, and 16 percent said they were able to up their bonus by switching employers or positions. And, of course, those expecting lower bonuses blamed... Read more

As bonuses approach, there are rumours of apprehension at Morgan Stanley. After an incredibly bad third quarter in which Morgan Stanley’s trading operations did manifestly worse than rivals, the bank is said to be dissatisfied with some of its recent hires. In August 2009, Morgan Stanley announced its intention of making 400 sales and trading hires. It reiterated this in January 2010, when James Gorman said the bank needed to “seriously... Read more

Yesterday, Robert Zoellick, president of the World Bank, suggested it might be a good idea for a return to the gold standard. For the moment at least, this looks unlikely. It would probably, in any case, be unfeasible. This is fortunate, because, as Edmund Conway points out, a return to the gold standard would mean an end to the banking system as we know it. Instead, we have $600 billion of quantitative... Read more

We probably won’t know the answer until Q1, but it’s a debate that is starting to ignite the employment market: will Asian employees of international banks take a hit on their bonuses because of slumping revenues in the West, or will their payments be ringfenced to reflect rising deal making in Asia? IPOs in ex-Japan Asia, for example, have totaled US$100.5bn so far this year, up from $36.9bn billion in the... Read more

It was more than just fluff when Goldman Sachs CFO David Viniar told investors that much of its recent recruitment relates to the new regulatory environment, with hundreds of staff hired "on the risk management and control" side of the firm. It makes sense. As trading and dealmaking prospects are compressed, new pockets of opportunity are growing in risk management and compliance. Government agencies, and those who manage the money for... Read more

Some experts suggest that Gordon Gekko’s “greed is good” mantra is alive and well on Wall Street, and that bonuses tell the tale. Ha. “Wall Street isn’t any other industry; it’s essentially a compensation machine,” argues Marketwatch columnist David Weidner. Well, maybe. Surely Weidner must have noticed the compensation drawdowns publicized at third-quarter earnings time by powerhouses like Goldman Sachs, Morgan Stanley, JPMorgan and Credit Suise. Goldman announced that its employees stand... Read more

Strong markets and wild competition for talent should spell some extremely good news this year for what Canadian fixed income professionals are paid, both on the buy and sell sides. Since August of 2009, “investors both domestic and foreign directed new assets into Canadian bonds, and global dealers that had retreated from the Canadian market during the global crisis returned,” says Connecticut-based Greenwich Associates report. “Average buy-side compensation is expected... Read more

Goldman Sachs is busy hiring - not traders, but risk specialists. CFO David Viniar told investors that much of its recent recruitment relates to the new regulatory environment, with hundreds of staff hired “on the risk management and control side" of the firm. [WSJ] Employment in investment banking and securities dealing dropped more than 20 percent in both New York City and New York state in September from a year ago.... Read more

Given that profit and asset levels are increasing, and the fact that many funds surpassed their high water marks, hedge fund bonuses should be up substantially. But remember, all funds are not created equal. "For some roles, bonus numbers will be 25 percent to 50 percent higher than 2009," says one recruiter. However, “information is still trickling in and a couple of bad trades can alter that bonus picture." His remarks underscore... Read more

Regional Chinese Banks Expand Into First-Tier Cities Foreign banks are eager to set up branches in second and third-tier cities, but Chinese regional banks are doing the opposite: expanding into larger cities, such as Shanghai, Beijing and Guangzhou - creating job opportunities at all levels. [Singapore] Private Banking: Demand rises, Talent-Supply Doesn't Private banking is a growth area in Asia, and the view is that the Japanese market is there for the taking,... Read more

Something’s got into Goldman Sachs. Its third quarter results, released today, reveal that it’s been doing rather a lot of hiring. Over the past year, Goldman has added 3,700 people, an increase of 12%. Over the same period, however, revenues have fallen 14%. Worse, net income is down 30%. Unsurprisingly, this is leading to carefulness when it comes to compensation. Accrued pay per head for the first three quarters currently comes in... Read more

Some are expecting pay to rise 4 percent this year, and Wall Street staffers are expecting higher bonuses. Meanwhile, banks are investing in strong-suit divisions. Citi has accelerated spending in securities trading and investment banking, while JPMorgan wants to double the size of its investment bank in Asia and has expanded its commodities-trading unit. So maybe it’s time to think about interviewing again while banks are willing to splurge. Here's a... Read more

JPMorgan’s results cast doubt on pay at its Europe investment bank JPMorgan added 1,545 people to its investment bank over the past year, but its compensation bill is down 10 percent. At the current rate of accrual, comp per head will be down 15 percent. European bankers don’t look well placed to fight for their share. [UK] New kid on the block: CVA trading Counterparty valuation adjustment (CVA) desks are nothing new. Most... Read more

JPMorgan Chase says it's “on track to hire over 10,000 people in the U.S. this year." The company’s third-quarter profit jumped 23 percent overall while profits in the investment bank sank. [Marketwatch] Vermont Senator Bernie Sanders is trying to revive legislation designed to break up commercial banks, investment banks, hedge funds and insurers that have grown so large that a failure would create economic catastrophe. [NECN] Hedge funds chalked up their strongest... Read more

Half of the financial services staffers in the U.S. expect a higher bonus this year because the business fared better than in 2009. While personal (34 percent) and firm performance (33 percent) are the leading reasons, 9 percent say changing employers is the primary reason their bonus will increase. That's largely driven by front-office professionals who’ve switched firms. That makes some sense, given that compensation is frequently a firm's primary... Read more

Bank of America hired 10 staffers to boost its global corporate team in Europe, the Middle East, and Africa. They include Rufus Beldam, formerly of Citigroup, who will head BofA’s EMEA energy and power division. [Reuters] Bank of America hired Zhang Xiuping , from Deutsche Bank AG, as co-head of mergers and acquisitions for Asia. [Bloomberg] RBC Capital Markets hired Glenn Anson as a managing director and global co-head of central bank... Read more

The European Union is seen implementing strict rules on bonuses as part of regulatory measures designed to rein in risk-taking. The strictest measures seem to be winning the most favor among European Union officials meeting this week in London to implement rules this summer. The Committee of European Banking Supervisors is leaning toward requiring banks to adhere to a strict ratio that would limit bonuses to a multiple of annual... Read more

Morgan Stanley's acquisition of Smith Barney's wealth management business was supposed to soften the blow of weak trading quarters, but the firm is suffering as much as rival Goldman Sachs, with both institutional and retail trading less of a boon than hoped. [ABC News] The European Commission appears cool to the idea of introducing an EU-wide financial transaction tax on traded assets. [Telegraph] Brokerages are hiring bankers and boosting capital during... Read more