A “poor” Christmas for the executives of the big international banks. After a 2021 in which champagne was uncorked, 2022 promises to be lean. According to some estimates Year-end premiums will be 30-50% lower of the last year and in some cases they won’t be there at all. The year that is ending was bad corporate transactions, listings, mergers and acquisitions, from which the investment banks draw lucrative commissions. The economic outlook is fraught with uncertainty, so caution is warranted. Furthermore, a stance desired by central banks that invite Bring hay to the farmhouse. The new year begins with the specter of new waves of layoffs, which is not uncommon in the industry. Last year, the Portal agency recalls, prices were staticthe highest since 2006, the year that preceded the onset of the biggest financial crisis of the post-war period. This year, however, the value of mergers and acquisitions has increased reduced by 37% to $3.6 trillion and the newly issued shares are reduced by 66% to 517 billion. In addition, the value of bank stocks has fallen by an average of 26% this year.
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In the Goldman Sachsone of the world’s top investment banks, which recently announced 4,000 layoffs, one is expected Bonus scissors over 40% and a similar cut should interest the rival’s top executives MorganStanley. In the colossus JP Morgan, No. 1 US bank premiums are expected to decrease by at least 35% and only slightly smaller reductions (30%) are also expected a Citigroup and Bank of America. The managers of the large US financial groups have salaries that fluctuate in between the $350,000 and $600,000 gross per year, with year-end bonuses that in some cases more than doubled base pay.
In London, the other major international financial center, the premium levels are still there in conversation but the air is bad here too. The two big ones Barclays and HSBC They have already started to reduce staff in departments like Investment Banking who had disappointing results this year. British banks are also under pressure to increase the wages of the lowest paid workers who are suffering the most Loss of purchasing power due to inflation. “We expect executive bonuses to be lower than last year and at some banks there will be none at all,” consultancy Heidrick & Struggles told Portal.
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