Forget the haters and bonus deniers. With the help of analysts at JPMorgan, Margaret Doyle at Breaking Views has got a plan which may allow UBS to pay 2011 bonuses despite both Kweku and the cost of putting up its executives at a luxury golf course in Singapore.
Doyle's plan is thus:
- Before the scandal, UBS was on track to pay around CHF1.9bn in bonuses (based on expected revenues and the proportion of revenues paid in bonuses last year)
- It could force employees to bear the brunt of the scandal and pay them nothing at all, but this would be counterproductive. They might leave, like last time.
- Instead, the pain could be shared. Employees could have some; shareholders could have the rest.
- Specifically, this year's bonus pot could be halved to CHF1bn, leading the investment bank to make a pre-tax loss of CHF400m. This would then trigger clawbacks from last year, thereby saving some of the CHF907m of deferred bonuses due in 2012 and making it clear that all senior staff must share the pain.
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Gruebel laughed when asked by Reuters on Wednesday if he still had the board's backing and said, "Yes. Always." (Evening Standard)
Some banks do not confirm trades until settlement and Mr Adoboli is likely to have known which ones those were, according to a UBS insider. (Financial Times)
Bank of America has dismissed 13 investment bankers in its industrials group, including two MDs. (Bloomberg)
The cigar smoking Irish man and the 6 foot 3 accountant at the head of Morgan Stanley's Institutional Securities Group do not get on. (Bloomberg)
Goldman Sachs fires someone for credit card fraud, even though they appear to have done nothing wrong. (Forbes)
BNP Paribas may be refused a permit to operate in South Africa because of its debt issues. (Bloomberg)
Nomura's been hoovering up people from Citadel in the US. (Bloomberg)
Deutsche Bank is going back to Brazil. (Bloomberg)
Investec has been seeing if Canaccord Financial wants the bits of Evolution it doesn't. (TheTimes)
47% of the homes in Beaconsfield cost more than 1m. (Telegraph)
We find that being firstborn confers a significant advantage in families with two, three and four children. (ScienceDirect)