Explaining Southern California's economy

Annals of the 1 percent: The agony of the bankers

Dow Jones Industrial Average Closes Slightly Down

Spencer Platt/Getty Images

Traders making money at the New York Stock Exchange. Just maybe not as much money as they used to.

Max Abelson (via Paul Krugman) writes at Bloomberg about bankers and their struggles to live on half a million a year, in the face of government regulations and more work than ever:

Michael Karp, 42, CEO of New York-based recruitment firm Options Group Inc., said Wall Street pay will fall 30 percent this year, and more for executives. It will be flat or down even in businesses doing relatively well, such as emerging markets and commodities, he said.

[...]

Karp said he met last month over tea at the Gramercy Park Hotel in New York with a trader who made $500,000 last year at one of the six largest U.S. banks.

The trader, a 27-year-old Ivy League graduate, complained that he has worked harder this year and will be paid less. The headhunter told him to stay put and collect his bonus.

“This is very demoralizing to people,” Karp said. “Especially young guys who have gone to college and wanted to come onto the Street, having dreams of becoming millionaires.”

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