LONDON BONUSES ... GUESS WHICH DIRECTION?

Probably as expected, London banker bonuses are.... not up! IFR is reporting expectations of lower bonuses on the back of data provided by www.emolument.com which predicts more so-called doughnuts this year, or zero bonuses. The report indicates that London banker bonuses are down on lower investment banking revenues, which have taken a hit since the pre-crisis heydays. For example, with MS expecting IB industry wide revenues coming in at $82 billion, falling 6% lower, expecting bonuses to be down up to 10% in FICC groups. However, the report also indicates that so-called doughnuts will increase dramatically in number as division heads seek to protect as much as possible rain-makers at the expense of nearly everyone else. What a change from pre-crisis periods where larger bonuses were the rage!

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