Goldman Sachs Traders are in for a bit
of a rude awakening Bloomberg has
learned that the lender warned the
executives in the global markets
division that its compensation pool will
be slashed the bonus reduction by low
double digit percentage follows a
similar warning from Jefferies which
blamed a volunteer across Wall Street
now for more we're joined by Bloomberg's
Finance reporter Tom Metcalf Tom good
morning so how big of a surprise is the
Goldman news
I think it's a surprise in that the area
that is affecting is the trading unit
the markets division so you know people
were expecting big cuts in the
investment banking unit but these are
the Traders these are done really well
they've supported the bank and of course
Goldman is you know sort of well known
in the street for sort of eat what you
kill if you perform well you will get
bonuses but what we're hearing is
there's going to be sort of cuts to the
bonus pool that it's sort of in
excessive or not reflective of how well
these Traders have done this year
so there's the surprise for the Traders
at Goldman Sachs but they're not the
only ones this is Rippling across the
industry Tom
yeah look this is the big issue um for
you know a lot of Bankers out there and
particularly an investment Bank in that
deals side the ECM side
um but yeah pretty much every Bank uh
you've had Jeffrey's this week warning
their staff it's going to be a tough
bonus season you know at Barclays uh you
know we're here in some bone that Banks
might get zero bonuses uh so you know
across the board and particularly in
Investment Banking it is um going to be
a much tougher bonus season than at
least last year