The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Want to talk Bank strategy – here's more pay disclosure & Jaime Dimon standoffs


Morgan Keegan brokers were the next hit by the bonus juggernaut, with Raymon James taking the $1 bln bill out of advisors’ retention pay on call. It announced a new tier of retention bonuses in upfront cash at 50% of revenues but only for the tier that brings in more than $ 500k in revenues. Anyone scoring less than $300k in revenues does not get any more than cash. That should be a lot of savings at the broker thi s year!

Jamie Dimon took on the new proposed Financial Crimes Unit admonishing the President for thinking up such slander as heightened investigations in the housing loans units will increase settlement costs for the banks and thus pricing for borrowers. Meanwhile the Greek opera is going to cost JP Morgan another $5 bln if everything falls thru as it has $15 bln in European exposure we again missed in last week’s Greek watch. HSBC and Barclays’ are losing on a base of $8bln and $12 blnas of November but  do not hold any Greek debt. Even BOC is out and only some specific debt exposures incl corp bonds are finding favor with US money funds returning to the continent

European banks have already reported ratcheting up $60 bln of the $130 bln demanded by EBA. They have time till June to cut , reoptimise and re rate to get the rest but do not have access to the erstwhile wholesale funding markets for that




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This entry was posted on January 26, 2012 by in Amitonomics, Bailout Nation, Banking, TARP, US and tagged , , , , , , , .


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