Banks plead for advice on how to spend £7, 000, 000, 000

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Freamon replied

3 January 2011, 22:34
Originally posted by Paddy View Post

One thing is for sure; they won’t be spending on there own dodgy investment packages

A few investment banks, and hedge funds set up by ex investment-bankers, have started to buy up dodgy MBS. However they've bought them because of explicit/implicit government underwriting, or in the case of Bill Gross, apparently bought them with the strategy of forcing the originating banks to take back the dodgy loans that are being thrown up by the foreclosure robosigning scandals. Could be a massive win if it works.
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Paddy replied

3 January 2011, 19:21
One thing is for sure; they won’t be spending on there own dodgy investment packages
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Freamon replied

3 January 2011, 19:15
Originally posted by AtW View Post

It would be much safer for world economy if investment banks as they are now will shut down completely.

Maybe the prop desk side, but that's going to be severely limited by upcoming regulations anyway. M&A bucket shop / pirate equity side of things we could happily lose as well IMO.

True investment banking services OTOH are pretty necessary for businesses to raise capital to spend on new projects (employing IT contractors amongst other things).
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AtW replied

3 January 2011, 18:11
Originally posted by Freamon View Post

banks believe they'll lose their decent staff if they don't pay them.

It would be much safer for world economy if investment banks as they are now will shut down completely.
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Freamon replied

3 January 2011, 18:09
I'm not surprised they're confused, but I don't think the govt have got any coherent answers for them either.

If they're not allowed to pay it as bonuses, they'll find some way of paying it as salary. Bonuses are all about retention, banks believe they'll lose their decent staff if they don't pay them.
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TimberWolf started a topic Banks plead for advice on how to spend £7, 000, 000, 000

3 January 2011, 16:48
Banks plead for advice on how to spend £7, 000, 000, 000

Banks plead for guidance on bonuses set to total £7bn - Telegraph

Seems like they've got too much money problems.
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