Morgan Stanley Investment Bankers Are Winning Wall Street This Quarter

Morgan Stanley investment bankers are going to have the best bonus day on Wall Street, according to Bloomberg.

Others aren’t so lucky.

JP Morgan and Citi’s bond traders are going to get the shortest end of the stick in terms of pay.

While JP Morgan scored some of the biggest mergers and bond deals this year, its fixed income revenue dipped 14 per cent to $US10.6 billion. This was the biggest decline among the big five investment banks but it still retains the largest share of fixed income revenues.

JP Morgan is expected to pay $US10.8 billion in bonuses and compensation to all its staff this year – the least when compared to Goldman Sachs’ $US12.6 billion and Morgan Stanley’s $US16.3 billion.

All the banks earned about $US16 billion in the third quarter, up 19 per cent from last year, according to Bloomberg’s estimates.

Citing the financial crisis, the IMF and the White House have criticised banks for tying compensation to performance because it doesn’t force bankers to think of the long-term consequences of their actions.

The banks begin reporting their earnings next week, so then we’ll get a good picture of how well they performed last quarter.

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