Gosh, what a surprise

City headhunters said they have been inundated with CVs from RBS bankers following the news that there would be no cash bonuses for 2009.

Isn\’t it?

And what happens if it turns out that there really is a competitive market for banking talent? If they all leave, if others are willing to hire them?

The tapayers get screwed over on their (involuntary) investment in the bank because certain types (no names, no pack drill Polly and Ritchie) led a baying mob in a populist rage?

12 thoughts on “Gosh, what a surprise”

  1. I would like to know exactly what these RBS bankers do. I mean, what’s their job description?

    I know a bit about investment banking (traders, salespeople, analysts, corporate financiers) but I don’t know what roles big bonus earners do in retail banks.

    If RBS was an investment bank, I’d say RBS, and hence the tax payer, is likely to lose out, because there are plenty of investment banks out there ready to hire people who will bring clients and revenue with them. But when it comes to a retail bank, I don’t know what these guys can take out the door with them when they leave.

    forgive the self-promotion, but my article about “nationalising Manchester United then imposing a salary cap” is surely the key reference here!

    Tim adds: RBS owns an investment bank or two….

  2. oh right, yes of course ABM Amro, for one – well imposing salary caps in investment banking, where bankers can walk out the door and take millions in revenue with them, is fucking lunacy, and if that’s what’s happening then we the tax payer and cutting off our noses to spite our faces, big time.

  3. As a headhunter – un-inundated with CV’s – I feel it should be pointed out that their new bonus arrangements are still less onerous than those that existed at Lehman’s, HSBC Inv.Bkg and many others BEFORE the crunch.

  4. still – does anybody know if there are jobs within retail banking where bankers can say “pay me lots of money or I will leave and take business with me?” –

    presumably they need skilled people to handle wholesale financing, liquidity, monitor risk exposure etc. but if these people leave, the worst that happens is you might only be able to hire less skilled people, they don’t take chunks of revenue with them when the go, do they?

  5. Abn Amro, mmm.

    I don’t see this proves anything. If a firm is offering more money then people are likely to think about moving to it. But this has nothing to do with the desirability offering them more money.

  6. I guess that two questions follow directly:

    Is there a competitive market for “banking talent”?

    If the “banking talent” ups and leaves RBS, will the taxpayer actually be worse off? (I note the size of the bail-out that RBS needed to rectify the mistakes of these rocket scientists with a wry smile…)

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