It’s stress test day, so you would think that all the heat would be on banks right?
Moments ago on Bloomberg TV, things got really intense between columnist Bill Cohan and anchor Stephanie Ruhle as they discussed whether or not high compensation at banks made them a bad value to investors.
The result was what we might call, a ‘journo throw down.’
Cohan said that no matter what happens to bank stocks in short term trading, Wall Street’s business model screws investors.
That’s when Ruhle interrupted: “This man has amnesia. He forgets. He worked at Lazard for a year.”
Things calmed down for a while until Cohan brought up his point again.
“We don’t need them to be paying out these huge compensation packages to the employees who work their,” argued Cohan. “As long as Wall Street pays out 50 to 60 cents on every dollar of revenue to the people who work there, then no, I would not be buying a Wall Street firm.”
Ruhle shot back: “Banks aren’t selling computers, they don’t have an inventory. It’s about human capital!’
And that’s when things got real.
Cohan fired at Ruhle, “You would’ve been happy to stay at Deutsche Bank if you’d gotten paid half of what you got.”
Ruhle didn’t like that. “I don’t think so,” she responded.
And then there was a commercial break, thank God.