I thought about sticking this in signs of the impending recovery for a laugh, but its really not funny:
guardian.co.uk/business/2009 … king-money
From the crowded bars of Canary Wharf to the corporate hospitality village at Wimbledon, memories are fading fast. Less than a year after the collapse of Lehman Brothers brought the banking system to its knees, London’s financial community is shaking itself down and getting back to the business of making money. “We are like goldfish,” says Jon Macintosh, a Mayfair hedge-fund manager. “We swim once around our bowl and when we complete the circle everything looks new.”
“There is a danger because we are now seeing some signs of positive things … and because of the exhaustion of driving through changes there could be some drawing back from the degree of radicalism we require,” warned Adair Turner, chairman of the Financial Services Authority, in Westminster this week.
guardian.co.uk/business/2009 … s-buzzword
The Marks & Spencer boss Sir Stuart Rose rubbed shoulders with Stephen Fry and Jack Straw as leading bankers talked excitedly about the new buzzword in their born-again sector: BAB.
BAB stands for Bonuses are Back, and its arrival in the lexicon of the Square Mile is evidence that bankers are once again looking forward to bumper payouts, just eight months after the sector faced meltdown and governments worldwide were required to prop them up.
Not a bit surprising. Give a gambler the money to pay off his current debts and a year later he’ll be back again worse than ever.
And on another thread posters are telling me that banks will be cautious and go back to prudent lending. Yeah, right.
You’re dealing with apples and oranges here.
The consumer parts of banks are going to be under vastly different pressures than the ones engaged in “high risk” activities. The lads who get huge bonuses don’t work at processing mortgage application forms and the banks don’t have the kinds of money needed to hand out cash recklessly anymore.