Archive for November 7th, 2009

British Bankers Defend Their Pay and Bonuses

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Published in The New York Times November 7, 2009 by Julia Werdigier
 
“Profit is not satanic,” John Varley, the chief executive of Barclays, told an audience at St. Martin-in-the-Fields church here this week.
The day before, Josef Ackermann, the chief executive of Deutsche Bank, Germany’s biggest bank, had insisted at a conference here, “Size is not necessarily evil.”
While not exactly Gordon Gekko’s “greed is good” speech from the movie “Wall Street,” Brian Griffiths, an adviser to Goldman Sachs International, said during a recent panel discussion at St. Paul’s Cathedral on “the place of morality in the marketplace,” that bonuses would encourage charity and lift the economy.

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Broader Measure of Unemployment Stands at 17.5%

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Published in The New York Times November 7, 2009by David Leonhardt
 
For all the pain caused by the Great Recession, the job market still was not in as bad shape as it had been during the depths of the early 1980s recession — until now.
With the release of the jobs report on Friday, the broadest measure of unemployment and underemployment tracked by the Labor Department has reached its highest level in decades. If statistics went back so far, the measure would almost certainly be at its highest level since the Great Depression.

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JPMorgan’s Dimon Hires His Father for Bear Stearns Brokerage

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Published in Bloomberg November 7, 2009 by Elizabeth Hester 
 
If Jamie Dimon ever needs fatherly advice, he can turn to his newest employee: Dad.
Theodore “Ted” Dimon, the 78-year-old father of JPMorgan Chase & Co.’s chief executive officer, quit Bank of America Corp.’s Merrill Lynch unit yesterday to join his son’s firm, according to a person familiar with the matter. JPMorgan spokesman Darin Oduyoye confirmed the decision and said the unit had added more than 70 brokers this year.

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To Retain Its Bankers, Citi Offers Option Plan

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Published in The New York Times November 7, 2009 by Eric Dash
 
Hoping to encourage bankers and managers to stay, Citigroup began dispensing several million stock options this week to more than a quarter of its workers in a way that could result in a sizable gain for them.
Many Citigroup employees saw their nest eggs vanish after the bank’s share price plummeted to about $4 now from about $56 a few years ago.
As an extra incentive to stay and help with the turnaround, Citigroup said it would grant one stock option at just above the current market price for each unvested share employees had accumulated. If the share price rebounds, as it has at Goldman Sachs and JPMorgan Chase, Citigroup employees could see a sharp increase in their 2009 compensation.

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