Bankers

[doubleup]

http://news.bbc.co.uk/1/hi/business/8392791.stm


I'm puzzled - I understand where a winning poker players money comes from but I don't understand where the money comes from that these guys claim to create.  More due to apathy than anything else I haven't sold any investments in the last 5 years, so my small portfolio has obviously increased in value over the last few months - is doing the same thing what these guys are getting rewarded for?

If they are doing something else, what is it and who are they making money from?

[thetank]

Economic factors

[StuartHopkin]

Theyre not bonuses though are they, really, they are part of their salary.

If you get paid £x but every year your almost guaranteed £x as bonus every year then taking away bonus £x is really a massive pay cut.

[henrik777]

Guns are cheaper. In fact splash out and buy a few big ones.

Sandy

[rossfourfive]

If the government suceed in their masterplan to have the power to veto RBS's bonuses the bank will never recover. It isn't a coincidence that the two banks that are still performing poorly are the two that the government are effectively running.

[StuartHopkin]

If the government suceed in their masterplan to have the power to veto RBS's bonuses the bank will never recover. It isn't a coincidence that the two banks that are still performing poorly are the two that the government are effectively running.

This, it just means all the more qualified traders will go and work elsewhere living RBS in even more of a whole.

[doubleup]

No one is answering my question - who are the "fish" the traders make their money from?

[boldie]

No one is answering my question - who are the "fish" the traders make their money from?

You make a fundamental error in reasoning. You assume the money exists.

[Geo the Sarge]

Lloyds banking group released their new terms and conditions to all staff today, not a very happy lot in the office today.

Ross mentions the more experienced traders going elsewhere, I think that Lloyds and RBS will be losing a lot more than just traders.

As much as we all think of the bonuses etc given to some of the higher rankers, most of their savings are going to be from cutting back on the lower echelons and their benefits.

Geo

[Geo the Sarge]

No one is answering my question - who are the "fish" the traders make their money from?

You make a fundamental error in reasoning. You assume the money exists.

Boldie,

from all the posts in regards to the banks/recession etc I've seen on here, that is by far the most sensible one I've read.

Geo

[doubleup]

No one is answering my question - who are the "fish" the traders make their money from?

You make a fundamental error in reasoning. You assume the money exists.

Well can't we just pay their bonus in non-existent money?

[henrik777]

No one is answering my question - who are the "fish" the traders make their money from?

You make a fundamental error in reasoning. You assume the money exists.

Well can't we just pay their bonus in non-existent money?

Because they lost it all.

Sandy

[Free_Rollin]

No one is answering my question - who are the "fish" the traders make their money from?

I assume you're talking about market makers. Market Makers provide pricing and liquidity of a particular financial instrument, and are able to buy and sell at their respective prices. They earn their commission from the spread between their bid and offer price. There is no 'fish' in this kind of sense.

Bankers, on the other hand, deal with mergers, acquisitions, and other equity and debt financing deals. They earn money through selling their services. The deals are quite huge in terms of money involved, and therefore they earn relatively large amounts of money.

If you're talking about, where does all this actual money being traded come from. Welcome to the world of debt, and the reason the world's a pretty f*cked up place right now.

[boldie]

No one is answering my question - who are the "fish" the traders make their money from?

I assume you're talking about market makers. Market Makers provide pricing and liquidity of a particular financial instrument, and are able to buy and sell at their respective prices. They earn their commission from the spread between their bid and offer price. There is no 'fish' in this kind of sense.

Bankers, on the other hand, deal with mergers, acquisitions, and other equity and debt financing deals. They earn money through selling their services. The deals are quite huge in terms of money involved, and therefore they earn relatively large amounts of money.

If you're talking about, where does all this actual money being traded come from. Welcome to the world of debt, and the reason the world's a pretty f*cked up place right now.

Nice but I refer once again to the answer I gave above.

[Free_Rollin]

No one is answering my question - who are the "fish" the traders make their money from?

I assume you're talking about market makers. Market Makers provide pricing and liquidity of a particular financial instrument, and are able to buy and sell at their respective prices. They earn their commission from the spread between their bid and offer price. There is no 'fish' in this kind of sense.

Bankers, on the other hand, deal with mergers, acquisitions, and other equity and debt financing deals. They earn money through selling their services. The deals are quite huge in terms of money involved, and therefore they earn relatively large amounts of money.

If you're talking about, where does all this actual money being traded come from. Welcome to the world of debt, and the reason the world's a pretty f*cked up place right now.

Nice but I refer once again to the answer I gave above.

Lol, I agree with your answer as well. I just wanted to give the OP a deeper insight.

Although, the general public views banks and bankers as greedy little pigs with no concern about anything apart from themselves, a lot of the problems go back to the olden days when banks offered mortgages to people who couldn't afford them. When banks realised they weren't getting their money back, they packaged up these mortgages along with other instruments and assets which were rated higher. The selling of these packaged instruments (CDS, etc) to other financial institutions ignited the situation, which is commonly referred to as credit crunch, etc.