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1,000 UK bankers hit exits over pay
NY Post ^ | December 7, 2009 | Paul Tharp

Posted on 12/09/2009 8:44:21 PM PST by CutePuppy

In a London preview of Wall Street's bonus nightmare, more than 1,000 investment bankers have quit Royal Bank of Scotland to work at rivals due to curbs on their paychecks, according to people familiar with the situation.

Wall Street banks fear top talent would flee en masse for greener pastures if Uncle Sam's pay czar, Ken Feinberg, and Congress try to put more ceilings on bonuses and pay at financial firms.

In the UK, the rules are modeled after US actions to curb pay at firms bailed out by the government.

RBS will soon be about 84-percent owned by the British government due to recent bailouts.

The protest exodus at RBS -- first reported on the Web edition of the Times of London -- involved less than 5 percent of its banking professionals.

.....

(Excerpt) Read more at m.nypost.com ...


TOPICS: Business/Economy; Government; News/Current Events; United Kingdom
KEYWORDS: aig; anastasiakelly; bailout; bankers; bonus; business; czar; czars; feinberg; kenfeinberg; payczar; thecity; wallstreet
Recently increased taxes in UK is another factor, many bankers are leaving for greener pastures in Switzerland and elsewhere.
1 posted on 12/09/2009 8:44:22 PM PST by CutePuppy
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To: CutePuppy

Not many, but 5% as reported by the TOL web edition. Good for them to do what they think is right but the economy sucks, so opportunities are minimal.


2 posted on 12/09/2009 8:48:38 PM PST by max americana (i)
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To: CutePuppy

Geithner and The Obahamster are yukking it up over this.


3 posted on 12/09/2009 8:51:26 PM PST by Rembrandt
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To: max americana
Yep, but it doesn't take that many. Losing just 5% of best and brightest to competition can make a difference between success and failure of institutions, especially the ones that need the most help, and where the pay is largely based on merit, i.e., a fraction of what the person brought in.

Penny wise, pound foolish?

And the ever-present potential for selective cronyism or favoritism on part of "pay czar" ?

Feinberg Said to Lift $500,000 Cap for AIG Executives - BL, 2009 December 08, by Hugh Son

AIG General Counsel May Depart After Protesting Cap - BL, 2009 December 09, by Hugh Son


4 posted on 12/09/2009 9:07:29 PM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy

I foresee the rise of a Chinese or Indian banking giant, flush with new talent thoughtlessly discarded by the West.


5 posted on 12/09/2009 9:19:15 PM PST by Trod Upon (Obama: Making the Carter malaise look good. Misery Index in 3...2...1)
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To: CutePuppy

Greedy SOBs


6 posted on 12/09/2009 9:36:37 PM PST by YHAOS
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To: CutePuppy

If they were the best and brightest that sure isn’t saying much since they crashed the worlds economy. Let em go here too the losers who took our tax dollars don’t deserve to be rewarded for failure. Like Bunning said this Fed is like the one from Jeckyl Island.

Audit: Taxpayers lose $61B on AIG, auto bailouts

http://news.yahoo.com/s/ap/20091209/ap_on_bi_ge/us_bailout_extension

AIG General Counsel Who Protested Meager $500K To Have Her Bluff Called, Get Sacked

It appears the only thing worse in this world than a measly $500,000 salary is getting no salary at all. And that’s exactly what is about to happen to AIG General Counsel, Anastasia Kelly, who before joining the bankrupt firm, was a GC at such reputable organizations as MCI/WorldCon (sic) and Fannie Mae. To paraphrase the objections against a very prominent Treasury Secretary recently, the question is not whether or not she will leave the job, the question is how she got it in the first place. Kelly, who recently was protesting the $500k salary cap imposed by Pay Despot Ken Feinberg, yet was in Benmosche’s black book, will likely be out of the organization, presumably involuntarily, by year end. We are confident that with the economy rocking she will be able to find a job that pays her much more in line with her true skills... which based on her track record hopefully involves more than leading three sequential companies straight into bankruptcy.

http://www.zerohedge.com/article/aig-general-counsel-who-protested-meager-500k-have-her-bluff-called-get-sacked


7 posted on 12/09/2009 9:41:15 PM PST by FromLori (FromLori)
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To: FromLori
Inasmuch as any General Counsel can be "leading three sequential companies straight into bankruptcy," let's consider that Anastasia Kelly was :
EVP and GC of Fannie Mae from 1995 to 1999, just before Jamie Gorelick's reign (Vice Chairman, 1997-2003);
at MCI from 2003 to 2006, after the WorldCon (sic) blowup and part of the "cleaning crew" of that company;
at AIG since 2006, well before Joseph Cassano in London office of AIG was writing billions of pounds in CDS "insurance".

People who think they will have trouble getting jobs don't complain about salary of $500K established by a government "pay czar" who has the flexibility to lift it for those he sees fit.

bibliography

Anastasia D. Kelly

Born: c. 1949

Gender: Female
Race or Ethnicity: White
Occupation: Attorney
Party Affiliation: Republican

Nationality: United States
Executive summary: EVP at American International Group

    University: BA, Trinity College Washington (1971)
    Law School: JD, George Washington University Law Center (1981)

    American International Group EVP and General Counsel (2006-)
    MCI EVP, General Counsel, Corporate Secretary (2003-06)
    Sears Roebuck EVP, General Counsel, Corporate Secretary (1999-2003)
    Fannie Mae Senior VP, General Counsel, Corporate Secretary (1995-99)
    Wilmer Cutler & Pickering Partner (1985-95)
    Carrington Coleman Sloman & Blumenthal Associate (1981-85)
    Martin Marietta Employee Benefits Director
    Member of the Board of Fortress Global
    Member of the Board of Owens-Illinois (2002-)
    American Bar Foundation
    Corporate Counsel Association Vice Chairman
    District of Columbia Bar
    Equal Justice Works Vice Chairman
    George W. Bush for President
    John McCain 2008
    Keep Our Mission PAC
    New Republican Majority Fund
    State Bar of Texas



8 posted on 12/09/2009 10:07:43 PM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy
s/b at AIG since 2006, well before after Joseph Cassano in London office of AIG was writing billions of pounds in CDS "insurance".
9 posted on 12/09/2009 10:10:08 PM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy

Some how I expect the banks will survive such a loss of ‘talent’.


10 posted on 12/09/2009 10:23:42 PM PST by paul51 (11 September 2001 - Never forget)
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To: YHAOS; Trod Upon
... involved less than 5 percent of its banking professionals.

Since the definition of "banking professional" is pretty loose and must include a good number of clerks and assistants, it is likely that not many more than the top 5% are paid over the limits established by US or UK "pay czar".

Greedy SOBs , indeed...

11 posted on 12/09/2009 10:35:55 PM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy
"Yep, but it doesn't take that many. Losing just 5% of best and brightest to competition can make a difference between success and failure of institutions,...

Back in the day it was said (and probably still is said), "80% of the (productive) work is done by 20% of the employees" It was true where worked as a part of senior management and I am sure it is true today.

12 posted on 12/10/2009 1:59:18 AM PST by 101voodoo
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To: 101voodoo
The classic Pareto Principle, aka 80/20 (sometimes 90/10) rule... applies to many events or situations.

Capital goes where it's welcome and stays where it's well treated. Same is true of (most) people.

13 posted on 12/10/2009 2:33:37 AM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy

It makes such perf snse. You have to wonder how it can be the clowns in Government cannot see that which is so obvious?


14 posted on 12/10/2009 3:35:42 AM PST by 101voodoo
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To: 101voodoo
You have to wonder how it can be the clowns in Government cannot see that which is so obvious?

It's not that they can't see the obvious, it's rather obvious to see that...

"It is difficult to get a man to understand something when his job depends on not understanding it" - Upton Sinclair
"Our worst enemies here are not the ignorant and simple... our worst enemies are the intelligent and corrupt" - Henry Graham Greene

15 posted on 12/10/2009 3:47:21 AM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy
"Greedy SOBs , indeed..."

Sorry . . . didn't realize such an obvious sardonic crack necessitated an /s tag.

16 posted on 12/10/2009 8:37:42 AM PST by YHAOS
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To: CutePuppy
top talent would flee

Ever since the banking crisis broke, I have searched diligently among the copious commentary on the subject in the hope of discovering some clue to what 'talent' is required to be a successful investment banker. I'm still none the wiser.

17 posted on 12/10/2009 9:09:22 AM PST by Winniesboy (61 years a NHS patient; 7 years a Freeper)
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To: YHAOS
Sorry . . . didn't realize such an obvious sardonic crack necessitated an /s tag.

Same here. I just added a bit of emphasis... hope you didn't mind :-)

18 posted on 12/10/2009 10:26:47 AM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: Winniesboy
It could depend on the sources of commentary, or the definition of copious, 'talent' and successful.

I am still none the wiser on what the definition of "czar" and, even more specifically, "pay czar" is or should be in, ostensibly, a capitalist society.

19 posted on 12/10/2009 11:05:29 AM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: FromLori
If they were the best and brightest that sure isn’t saying much since they crashed the worlds economy. Let em go here too the losers who took our tax dollars don’t deserve to be rewarded for failure.

I couldn't agree with you more.

There's a very simple way of dealing with the "best and the brightest" on Wall Street: take away their ability to leverage their positions by up to 40-1. Make them maintain no less than 20% equity on each and every position they hold, with stringent margin calls when they fall below 20%.

Also, bar depositor cash in the calculation of a bank's net capital (for trading purposes), because it's not capital. Depositor cash is simultaneously an asset and a liability for a bank. Yep, they have it on hand, but it's not the bank's money.

20 posted on 12/10/2009 11:22:53 AM PST by Night Hides Not (If Dick Cheney = Darth Vader, then Joe Biden = Dark Helmet)
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To: CutePuppy
hope you didn't mind :-)

Not at all. Just a little slow on the uptake today.

21 posted on 12/10/2009 1:08:29 PM PST by YHAOS
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