From a Greenwich real estate perspective, this is not good news

Feds about to slash Wall Street bankers’ pay.

Regulators have been meeting to finalize tougher post-financial crisis rules on how Wall Street banks can trade with their own money, and it looks like one of those rules will be that Wall Street banks cannot have compensation arrangements that reward it. Period.

That goes for foreign banks operating in the U.S. too.

The WSJ is reporting the same thing. Wall Street’s got some awfully clever minds, and tons of friends of Barry’s, so there’s probably a work-around here but if not, after this year, (some) bonuses just went kerploof, and bonuses pay for Greenwich mansions.

Of course, it was the banks’ screaming for a D.C. bailout that brought this on, so ….

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4 responses to “From a Greenwich real estate perspective, this is not good news

  1. Riverside Chick

    They’ll figure away around this in 2 seconds.

  2. Joey

    problem with the work around is that you first have to have money coming in to distribute as a bonus or income to the bank employees. You have to have a new avenue for business before the bonuses come back. This is the real obstacle for Wall Street.

  3. When Obuttfucker finally leaves office, things will get a whole lot brighter on Wall Street and everywhere else.

  4. Publius

    CF,

    I think that a lot of the highly comped folks have already moved from the banks to the alternative asset mgt space. The banks/brokers have been whittling this prop trading down over the past 5 years. Investor money is still flowing into hedge funds despite their mediocre post 2008 returns. Thank underfunded overly optimist expected return public pension funds for this.The issue is whether those whom have migrated away from the Volcker rule are more likely to stay in NYC even with kids or move to the likes of Greenwich. My guess is that the shift to Greenwich is not a given like in decades past. Ironically it may be Mayor Sandinista DiBlahblahblah who ultimately receives the lifetime achievement award presented by GAR for outstanding contributions to local real estate.

    I am sure there are readers of this blog whom would have a better sense of this migration because I don’t sit on that side of the fence anymore.