FierceFinanceFierceFinanceITFierceSarbox   FierceCIO
About | Sample | Privacy

At banks, traders take losses for the team

Tools
Tags
bonuses   John Paulson   subprime mortgages   Hedge Funds   mortgages   banks  

We all have heard the stories of how some hedge funds hit grand slams by betting against subprime-related mortgages. The New York Post mentions John Paulson's $3 billion take. Wow! But the Post and Traders Monthly also mention that at top banks, a lot of traders also bet correctly but ended up with less in bonuses. The reason: Their banks struggled overall, and that forced some changes in the bonus structure. Normally, you keep a percentage of what you generate. However in these times, some traders, despite great performance, earned less. In essence, they took a bullet for the team.

For more:
- here's the Post article

Related Article:
Are our bonuses safe? Editor's Corner

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.

More information about formatting options

What is 10 + 23?
To combat spam, please solve the math question above.