No more bottles??

ibintx's picture
Rank: Orangutan | banana points 291

From Dealbook/The Financial Times comes this news (need a subscription to FT for the full article. I dont have one:
http://dealbook.blogs.nytimes.com/2010/10/07/e-u-s...
The EU is considering limiting the bonus amounts in finance, both for banks operating in the EU, and EU-based banks worldwide. I think it only applies to managers and people in risk-taking positions. Is it just me, or does this represent a serious threat to the payday that every banker desires? This would seem to be a pretty socialist step for the EU. After all, no one is gonna work 100hrs/week for free!

What are everyone's thoughts on this? I can't tell if this would have a big effect or not, and how likely it is to be passed.

Investment Banking Interview Course

  • 7,548 questions across 469 investment banks. Crowdsourced from over 500,000 members.
  • Technical, behavioral, networking, case videos, templates. All included.
  • Most comprehensive IB interview course in the world.

Comments (14)

Oct 7, 2010
ibintx:

This would seem to be a pretty socialist step for the EU.

unintentionally hilarious to me

Oct 7, 2010
Midas Mulligan Magoo:
ibintx:

This would seem to be a pretty socialist step for the EU.

unintentionally hilarious to me

Ditto.

Oct 7, 2010
FT:

the regulators are also considering requiring each country to set a numerical floor where the pay restrictions would kick in.

I thought we were talking ceilings here... Anyhow, the only way I could see this turning out well is if S&T somehow got way less competitive and I could get on the desk(s) I want.

Oct 7, 2010

Lloyd already called bullshit on this and told the EU that Goldman would pull up stakes and leave Europe if they tried any shit like this.

Oct 7, 2010

I was being semi-facetious but I get it now.

Learn More

7,548 questions across 469 investment banks. The WSO Investment Banking Interview Prep Course has everything you'll ever need to start your career on Wall Street. Technical, Behavioral and Networking Courses + 2 Bonus Modules. Learn more.

Oct 7, 2010

The EU is a joke. They wont achieve anything.

I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing.

Oct 7, 2010

All these fucking lazy socialist cunts piss me off like nothing else.

Oct 7, 2010

it says something about political leaders pandering that for all their talk they have essentially done nothing in regards to financial regulation.

Oct 7, 2010

Honestly, you're all stupid if you think you're going to make as much in finance as you used to. The money is now all in Asia, not in the west. If you're smart and still in college go to med school or something, finance is not what it used to be.

Oct 8, 2010
WestHudson:

Honestly, you're all stupid if you think you're going to make as much in finance as you used to. The money is now all in Asia, not in the west. If you're smart and still in college go to med school or something, finance is not what it used to be.

Haha, go to med school?? That's the worse advice I've ever heard. I'd risk finance any day before I went to med school. This is coming from someone who has dozens of friends and ex-gf in, or recently graduated from med school. Medicine isn't want it used to be and will be very different going forward. Not to mention I want people practicing medicine so they can help and cure, etc...not working for a huge payday, although I do think doctors should make a shit ton of money.

Regards

Oct 8, 2010
WestHudson:

Honestly, you're all stupid if you think you're going to make as much in finance as you used to. The money is now all in Asia, not in the west. If you're smart and still in college go to med school or something, finance is not what it used to be.

I'm admitted to a joint Bachelors and Medical Degree program. The grass is not greener on the other side. The hours are as bad, my father at 55 works 70-80 hours a week and is on call 24/7. The pay ranges from 150K a year for family practice, 175K for internal medicine, 250K OB/GYN, 300K General Surgery to 800K-1.2 Million for neurosurgery and vitreoretinal. Despite having an in for ophthalmology and hence vitreoretinal, it still isn't worth it. Med school runs 200K plus opportunity cost, so the real cost is closer to 400 to 500K. Residents work analyst hours for shit wages, the nominal limit is 80 per week however, 110 to 120 hours is not unheard of for residents at some programs and the pay is 30-45K a year. Finance has one huge disadvantage the lack of job stability. MDs and DOs don't get canned.

Oct 11, 2010

Well at the end of the day, if you find medicine more interesting than finance then determining opportunity cost and potential future pay isn't the analysis you should be performing. The downside to capitalism I guess. We had an intern one summer from Harvard. Brilliant guy who excelled in physics and chemistry, but now sits on the Fixed Income floor.

Sure he makes more money than if he had gone into academia / research, but I just imagine what his contribution to society could have been versus making some bank 0.005% more wealthy.

Oct 11, 2010

So long as there are bankers there will be bottles!