[dude]

'I've got to say that all this stuff about bank rescue plans cutting back on (or even killing) big industry bonuses has made me smile. If anything, the action of central banks and world governments will result in even bigger bonuses for the chosen few.
And by 'chosen few', I'm not talking about the top executives who run these banks - no, they will certainly see their cash compensation affected until they can get the government monkeys off their backs. But, for guys like me, the sky remains the limit.

Let me explain it in basic terms. I'm just a simple equities trader. The volatility in the market has meant that I have made a bundle for my firm recently (although I didn't get it right every day). I'm not a maverick. I respect the disciplines of the limits imposed on me, don't try and be too clever, engage with (and cooperate with) the compliance team, and simply use my experience in the markets to seek out opportunities and capitalize on short-term price movements. In short, I'm an ideal employee - I make my firm a lot of money, but go about it in a quiet and efficient way.

Now several banks (and potential employers) around the world have made a Faustian pact with their governments (or been forced into one). These banks don't want to be part-owned by the state (God, isn't that against everything people like us believe in ?), and they will be doing everything they can to rid themselves of their new 'partners' as quickly as possible. And, to that end, they will need just one thing (something that has admittedly been rather elusive recently) - and that's profits. They will simply need excess cash to redeem government investments and equity injections.

To achieve this, of course, the banks will need to do a number of things. Firstly, they will have to cut back on their expenses, paring back on headcount. They will need to exit non-core businesses. They will also need to scale back on unnecessary risk. But, most importantly, they will need to retain people like me - those that they can rely on to put in strong performances without undue risk. Sure, they will chop the prima donnas and showboaters, they will cut-back on pay to executives and support staff (those guys always get it in the neck when the going gets tough), but people like me will thrive in this environment.

A colleague said to me earlier this week that 'half the market's got nothing to do, and the other half doesn't know what to do'. He's almost right. For those of us revenue-generators who have been around awhile and know how to keep our powder dry, the future looks bright. And if I don't get paid out by my existing firm, there are plenty more out there keen to get their hands on my revenues (I've had four calls directly from rival firms in the last few days). Last week, the number one priority for market participants was survival. Now it's ditching their bail-out 'partners'. And, with people like me, they will be able to regain their freedom at a much earlier date. Cut my bonus - are you having a laugh ?'.

http://news.hereisthecity.com/news/b...ews/8357.cntns