Bank talent rivalry called a hoax
Posted by | Posted in Business News | Posted on 25-07-2011
GENEVA, Switzerland, July 26 (UPI) — Top bankers in Switzerland have invented a rivalry for talent to secure their own bonuses, a bank employees association leader said.
Denise Charvet, secretary-general of the Swiss Bank Employees Association, said banks are paying top tier executives huge bonuses, using the rationale that an exclusive group of executives would find other banks to work for if not paid well, Swissinfo.ch reported Tuesday.
Bonuses for bank employees fell 11 percent to $5.95 billion in 2010 compared to 2009, but the highest level executives increased their share of the bonus pool by one third, the news agency said.
Fear at banks UBS and Credit Suisse, however, have gone beyond bonuses this week, as UBS said it would trim its operating budget by $2.5 billion through 2014.
That generally means jobs will be cut.
Credit Suisse reports its second quarter earnings this week. The bank is expected to report reduced earnings and increased layoffs.
Swiss media have been reporting Credit Suisse could lay off as many as 1,600 workers.
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