Tuesday, June 30, 2009

JP Morgan upping salaries?

"J.P. Morgan Chase is considering raising its investment bankers' salaries to match hikes at rivals like Citigroup and Bank of America and retain talent."

About 5 months ago in the midst of the crisis and when Wall Street bonuses were a hot topic, I predicted this trend. Instead of paying a bankster $500k base salary and $2 million in year-end bonuses, the banks will shift to a model of $2.5 million in base pay to "retain talent". Everyone wins!! The banks and the "talent" get to keep acting as if it's business as usual. The only potential losers might be the taxpayer and consumers, but no real news there.

Cheers!

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