Banker Pay – the mathematical truth behind the ‘pay for performance’ rip-off In this excellent and amusing article by the folks at Ripped-Off Britons (from the Guardian) they explore the mathematics behind bankers pay and performance. In truth bankers pay themselves so well because they can. The arguments about talent are weak. Senior bankers spend …View full post
The Insurance Industry has rightly come in for criticism of some of its practices. They are opaque in many areas and seem to take the opportunity to load up premiums when they can. The spread of quotes can be interesting. Ranging from neat and tight groupings (surely not a cartel!?) to a huge spread. Another …View full post
Hello and welcome to Honestlybanking. The aim of this site is to give you an honest view on what goes on in finance and the world of banking. I’m an insider so am taking a big risk by exposing the trade secrets. I plan to go into some more depth on different area. I’m going …View full post
How much do bankers really earn? This is actually quite a difficult question to answer as it depends on what you mean. Those working in your local high street branch, actually earn quite a bit less than you think. They don’t get the huge salaries and bonuses that hit the headlines. However they are critical …View full post
Balance swings against the star traders Star traders…..what a load of rubbish! Luck, luck and luck are all that is needed. For every star their are thousands who are not. Usually when traders jump ship they somehow ‘loose their touch’. Truth is they had before….they didn’t want to be found out. I know a very …View full post
There is an old saying in economics that profit is just reward for risk taken. Bankers take few risks with their own money, but plenty of risks with other people’s. Yet they take the profit.
The worst that can happen to a banker is prison for a crime. This is rare in the UK but more common in the US and other jurisdictions. Probably the worst that can happen is they are fired. As we have seen even giving up a knighthood and a portion of your pension is hardly reparation for damage done.
Many people take far more risks than bankers and do not profit. Greed drives it. Bankers are well rewarded for little risk. Remember this when negotiating with them. It’s probably your risk and their profit that is at stake.