Most Bankers Are In For A Shock At Year-End

Pile Of Coins

A good shock, or a bad shock ?

Self-confidence and betting on long odds are part of their DNA and so, while expecting the financial industry to slash bonuses this year, many bankers think it will not happen to them.

They're in for a shock.

Reuters reports that after a year of scandals, job cuts and shaky markets, senior managers and consultants contacted by Reuters warn bonus pools at top firms could shrink by up to 30% from last year.

And that's not to mention the pressure from regulators for pay restraint and, in Europe at least, the risk of a backlash from politicians and the public if an industry which many blame for a new era of austerity were to reward itself generously.

The result will be more zero bonuses, dubbed 'doughnuts', than ever before as banks become more selective at separating revenue-makers from the merely mediocre.

One banker told Here Is The City: 'We're all living in denial, thinking it won't happen to us. A lot of us will have a come to terms with the new reality in the next few weeks'.

Hit the link below to access the complete Reuters article:

Bullish bankers struggle to adjust to bonus cutbacks

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