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The rogue trading scandal might hurt bonus payouts at banks in London, according to the Telegraph.
That UBS bonuses would be affected was obvious. The $2.3 billion trading loss at UBS believed to be caused by a lone rogue trader at the beleaguered Swiss bank — which is already laying off thousands of workers — made “zero” bonuses a possibility at UBS. One UBS employee told Business Insider, “A bunch of employees that were staying put anticipating a bonus just got sacked in the nuts.”
But now as a result of what happened at UBS, London “City” banks are expected to offer lower bonus payouts as well, the Telegraph reported. (Banks with operations in London include Barclays and U.S. Wall Street titans Goldman Sachs and JPMorgan.)
This is because the massive trading losses at UBS have fuelled bank critics’ push for more regulations to shrink the bonus pools to retain more profit as loss-absorbing capital, the report said.
At least bonuses were good last year.
Back in February, several of the BarCap traders, who’s chief executive Bob Diamond had recently revealed a £6 billion profit, were caught downing bottles of Cristal and buying luxury cars with their bonus checks.
“Even if a guy is really lazy and has done s*** all year, he’ll still get a £600,000 bonus,” one of the traders told the UK Mirror.
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