US Banking Performance and Bonus Controversy<br />Presented by: <br />Praful Anchaliya<br />
Primary roles of Bank <br />Goods and services<br />Central Bank<br />Depository credit intermediation<br />Industry organ...
Working Conditions<br />Hours<br />2008- A non supervisory works for 36.2 hours week.2008- 8% of employees, mostly tellers...
Employment<br />Employment <br />2008- Industry employed about 1.8 million wage & salary workers<br />74 percent of jobs w...
Quarterly Net Income<br />
Net Interest Margin<br />
Factors of Change<br />
Industry Consolidation Continues<br />
Number of Banks Failure <br />
Housing Inventories<br />
Salaries and Bonus<br />
Bonus facts<br />Citigroup, Merrill Lynch and seven other US banks paid $US32.6 billion in bonuses in 2008 while receiving...
Conclusion<br />Example: <br /><ul><li>In the case of Washington Mutual fund , the FDIC stepped in to secure the good asse...
 Washington mutals fund’s good assets and deposits were sold to Jamie Dimon of J.P. Morgan.</li></li></ul><li>EXAMPLE:<br ...
Thank You<br />
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Investment Banking

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US Banking performance & bonus controversies

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Investment Banking

  1. 1. US Banking Performance and Bonus Controversy<br />Presented by: <br />Praful Anchaliya<br />
  2. 2. Primary roles of Bank <br />Goods and services<br />Central Bank<br />Depository credit intermediation<br />Industry organization<br />Commercial banks<br />Savings banks and savings and loan associations<br />Credit unions<br />Federal Reserve banks<br />
  3. 3. Working Conditions<br />Hours<br />2008- A non supervisory works for 36.2 hours week.2008- 8% of employees, mostly tellers, worked part time.Support staff work a standard 40-hour week.<br />Work environment<br />Commercial and mortgage loan officers often work out of the office.<br />Safe Place to work <br />Some of employees are located primarily at the headquarters or other administrative offices.<br />
  4. 4. Employment<br />Employment <br />2008- Industry employed about 1.8 million wage & salary workers<br />74 percent of jobs were in commercial banks<br />Mostly bank branch offices employed 38 percent of all employees.<br />
  5. 5. Quarterly Net Income<br />
  6. 6. Net Interest Margin<br />
  7. 7. Factors of Change<br />
  8. 8. Industry Consolidation Continues<br />
  9. 9. Number of Banks Failure <br />
  10. 10. Housing Inventories<br />
  11. 11. Salaries and Bonus<br />
  12. 12. Bonus facts<br />Citigroup, Merrill Lynch and seven other US banks paid $US32.6 billion in bonuses in 2008 while receiving $US175 billion in taxpayer funds under the Troubled Asset Relief Program<br />Citigroup and Merrill Lynch suffered losses of more than $US27 billion at each firm ,Yet Citigroup paid out $US5.33 billion and Merrill $US3.6 billion in bonuses.<br />Bonuses averaged $US160,420 for Goldman Sachs's 30,067 employees, compared with $US13,580 at Bank of America, employer of 243,000 people.<br />Bonuses averaged $US95,286 per employee at Morgan Stanley, $US61,017 at Merrill Lynch and $US38,642 at JPMorgan Chase & Co., which operates large retail and investment banking units.<br />
  13. 13. Conclusion<br />Example: <br /><ul><li>In the case of Washington Mutual fund , the FDIC stepped in to secure the good assets and deposits, puts these assets into a new company and then sells off those assets to a stronger financial institution.
  14. 14. Washington mutals fund’s good assets and deposits were sold to Jamie Dimon of J.P. Morgan.</li></li></ul><li>EXAMPLE:<br /> - Last quarter, Citigroup announced that they will be splitting up their business to Citigroup Holdings Corp. and Citicorp. <br /> - Both of these companies still operate under the Citi name for the time being, but it allows them to be spun off or sold off easier in the future. <br /> - Citigroup Holdings Corp. would be the entity that would be spun off into the “bad bank” structure if the government chose that route.<br />
  15. 15. Thank You<br />

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