JPMorgan, BofA to hike salaries of junior bankers


JPMorgan (NYSE:JPM) and Bank of America (NYSE:BAC) are planning to raise junior employees' salaries by at least 20%, Reuters reports

Many banks have been considering pay hikes, as Wall Street continues to ease strains on junior bankers by limiting the hours they work and compensating them better.

Yesterday, Goldman Sachs (NYSE:GS) announced its plans for salary increases and Citigroup (NYSE:C) is now considering a similar pay raise.

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Comments (35)
  • Ghenghero
    , contributor
    Comments (31) | Send Message
     
    Not sure where banks see junior banking employees shortage. It must be a senior management move to justify their own compensation package increase.
    Not very shareholder friendly.
    21 Aug 2014, 02:47 AM Reply Like
  • Rookie47
    , contributor
    Comments (96) | Send Message
     
    What exactly does a "junior banker" do? Are they talking about 'financial planners' aka stock brokers? Aren't they mostly on commission anyway?
    21 Aug 2014, 02:55 AM Reply Like
  • outofhere
    , contributor
    Comments (3694) | Send Message
     
    rookie47

     

    In the old days the assistant-treasurer and assistant vice presidents were the junior bankers. Most are not stock brokers or FP. They run units within the bank like letters of credit, forex, and money market operations. just to name a few. These are the men and women who make the day to day operations run.
    21 Aug 2014, 08:14 AM Reply Like
  • Ghenghero
    , contributor
    Comments (31) | Send Message
     
    A "junior banker" does power point presentations and photocopies.
    21 Aug 2014, 03:02 AM Reply Like
  • outofhere
    , contributor
    Comments (3694) | Send Message
     
    ghenghero

     

    This is the reason so many people are poor. You have no idea how a bank runs nor do you know what it can do for you
    21 Aug 2014, 08:18 AM Reply Like
  • joecohen18
    , contributor
    Comments (61) | Send Message
     
    As Bank Of America, b,anks provide investment management services to clients with differing characteristics, investment needs, and risk tolerance. A bank is usually paid a percentage of the dollar amount of assets being managed in the client’s portfolio. If an account’s total assets are below a minimum, it often pays a fixed fee. Other factors in the amount of fees are an account’s complexity and other banking relationships. Some banks have advisory agreements that base compensation on performance. In this type of arrangement, the portfolio manager, or adviser, receives a percentage of the return achieved over a given time period.
    21 Aug 2014, 04:43 AM Reply Like
  • nooseah
    , contributor
    Comments (709) | Send Message
     
    Wrong.

     

    An investment bank does not manage a client's portfolio. That is the job of an investment management firm. An investment bank provides intermediary services in capital markets. It acts as market-maker in a variety of securities and derivatives thereof, as well as raises capital (of all types) on behalf of corporate clients. There are a host of ancillary services provided to clients on both sides of the spectrum but managing their investments is categorically not one of them. Until recently investment banks ran huge proprietary trading operations although 'officially' those no longer exist. In truth, they do, albeit operate now under a different 'banner'.
    21 Aug 2014, 06:53 AM Reply Like
  • Hardog
    , contributor
    Comments (16726) | Send Message
     
    joe But what is the definition of a jr banker.
    22 Aug 2014, 10:24 AM Reply Like
  • Hardog
    , contributor
    Comments (16726) | Send Message
     
    noose
    good poionts
    22 Aug 2014, 10:24 AM Reply Like
  • pfifla1
    , contributor
    Comments (603) | Send Message
     
    those poor junior bankers stuck in the AC all day pushing paper for long hours, they need to make at least 150k a year for all that hardship and struggle.

     

    cry me a freaking river... pay should be directly related to how much you add to the bottom line.
    21 Aug 2014, 06:45 AM Reply Like
  • outofhere
    , contributor
    Comments (3694) | Send Message
     
    pfifla1

     

    Most make less than 100k in salary. As usual most people have no clue how a bank is run. Between the branch you use and the trading room you see on TV there are a lot of units that do a lot of services for a lot of industries.
    21 Aug 2014, 08:26 AM Reply Like
  • Investorix
    , contributor
    Comments (33) | Send Message
     
    As they should, if they don't add to the bottom line. Are you aware Mr. NYC & Texas Banker that general doctors of medicine in the US make between 130-150K and they save lives? What do bankers do? We could abolish all banks and have only one Bank and everything would work just fine, but you can't do it with doctors. The US is a strong country because it was built by people who did real things, the financialization of our economy may prepare the end of this great country. How is a bank run. I worked for several of them. They have learned quite well to privatize profits and socialize losses. Is that hard Mr. Banker? They primarily take our money and borrow to us. Are you aware Mr. Banker that over 85% of M&As that are "professionally" prepared and executed by bankers don't work out and and end up not making but losing money for shareholders? I want to puke when I see people who work in finance complaining.
    22 Aug 2014, 12:01 AM Reply Like
  • Phr3d
    , contributor
    Comments (444) | Send Message
     
    gotta love trolls..
    22 Aug 2014, 02:10 AM Reply Like
  • outofhere
    , contributor
    Comments (3694) | Send Message
     
    investorix

     

    I was as my post indicated an army medic and later an EMT so I am aware of what Doctors do and don't do . Are you aware that errors by medical doctors kill over 100,000 a year. You might want to read some interesting facts as to the number of doctors available in the west during our growth period of the 1800s. Based on your comment I ASSUME you worked not in real banking but in the broker division. Are you aware many countries they tried one bank in history. it didn't work. Just look at the mistakes of the federal reserve bank leading up to the 29 crash. Are you aware that 60 percent of population gets a routine pay check because of payroll agreement with a local bank. Your ability to move from place to place
    without banknotes or coins happens because of banks. You can drive a car
    because of letters of credit got the oil delivered here. Your able to write a check to some one at the other end of the country because of the banking network. Like I said most people including you do not understand how a bank works. Are you aware that all the M & A does not generate in one year .001% of the daily volume of banks in the USA.
    Could you tell me what this tirade means
    They primarily take our money and borrow to us.

     

    As to your rant on M&A the reasons that it doesn't work out is because
    like a doctors prescription the individuals don't follow instructions. Just look at what the former CEO of JC PENNEY did.

     

    here is another rant
    They have learned quite well to privatize profits and socialize losses.

     

    please clarify what you are trying say give two actual occasions I would gladly comment on them.

     

    You might want to read my profile. I get paid NOTHING I help and review
    peoples assets. I teach how to diversify assets, invest wisely, limit credit use.

     

    You might read my comments on how we should brake up the big banks and how dodd frank screws the public.
    22 Aug 2014, 08:54 AM Reply Like
  • Hardog
    , contributor
    Comments (16726) | Send Message
     
    Invest

     

    Add in the CEOs who richly compensate themselves.
    22 Aug 2014, 10:25 AM Reply Like
  • outofhere
    , contributor
    Comments (3694) | Send Message
     
    hardog

     

    I would like to see CEO get paid no more than 250 k in salary.
    and a bonus and option based system. bonuses based on the bank meeting specified goals and options that are 5 year based and lose value
    when profit decline. I would also have a cash incentive that has claw back provisions payable at the end of service and a five year claw back time provision.
    22 Aug 2014, 10:59 AM Reply Like
  • Investorix
    , contributor
    Comments (33) | Send Message
     
    Ok Mr. Banker- since you insist you are the only one who knows- let me ask you this question- if I as a private investor make mistakes say in investing in buying real estate will taxpayers rescue me? How many banks and bankers who knew how banks WORK were rescued with OUR money MR. Banker? We should have left them go down just we do all other businesses when they make mistakes and even doctors who lose their licenses. The banking and financial sectors in the US are the brats of our country and you are saying we don't know why!!! What I am saying is- same standards for all. Banking and finance has turned into a joke Mr. Banker. Do you have any idea how many of those colleagues of yours inj banks originated subprime loans to people who had no income, no credit, no collateral? Do you know how many packaged those loans into CLOs and lost investors billions of dollars? Do you know that they pocketed their fees and when those structures collapsed they never returned those undeserved fees? Why no claw back? Why not link payment of those fees to the life of the investment structures? Mr. Banker you seem to be the one not to know how this fraudulent scheme worked. I know you can claim why investors bought those investments- well Mr. Banker only because you can find people you can convince to play-- say-- with nuclear bombs, the society shouldn't allow selling of nuclear bombs, right? The banks and banksters are responsible for a lot of wrongs and not admitting it and telling people you don't understand how a bank works is indicative that bankers have not learned anything. Let capitalism work freely Mr. Banker.
    22 Aug 2014, 11:56 AM Reply Like
  • outofhere
    , contributor
    Comments (3694) | Send Message
     
    investorix

     

    Ok I will answer you questions to the best of my ability
    1] Assuming no negligence on your part as the investor the taxpayers will fund your loses via capital losses on your income tax.
    2] trick question seeing the Fed did the loans no matter what the politician say no tax payer money was involved for the big banks you might note only the union owned companies didn't pay back the loans. You should also note the Fed received interest. none of YOUR money was involved.
    3] I don't disagree that letting some investment banks fold was not a bad idea . You might note if you carry that idea forward we would not have the biggest American airlines as they all went bankrupt.
    another note doctors do lose licenses however if the system was fair 10 times the amount would lose them. doctors like lawyers protect their own.
    4] I agree with the same standards however you first have to change the over 100+ different regulators. Do that and we can start a dialogue on how to adjust the financial institutions
    5] Here is where you lack of knowledge comes in the HUD regulations and Community reinvestment act forces those SUB prime loans-
    Who in their right mind would loan to anyone with out a 20% deposit.
    Didn't anyone learn from the margin requirement of 100 years ago.
    6] Anyone who invested in a CMO/MBS after 1974 deserved to loose money because no one paid attention to the GNMA Breakdown in the early 1970's
    7] as to claw back and fee you tell me why they never regulated them
    8] Sure I knew and any 14 year old knew,you tell me what you did about it
    and how many times you complained to the regulators. Since seeing the 1974 GNMA problem my bank never touched another cmo/mbs
    9] think how stupid your comment on nuclear bombs is and then ask your self how India, Pakistan and now Iran got there and they can't ever feed their people.
    10] You can pontificate but you fail to realize that the regulators write the rules and when you don't like what a bank does, 1st read the rules if they broke the rules make a complaint. if the bank didn't brake the rules
    lobby the politicians to make a rule

     

    now try to answer this comment I made yesterday on this subject

     

    I do agree with you to hold accountable those specific individuals that did wrong.
    the problem is that a lot of what was done was legal not moral but we can't jail those with low morals.

     

    take this example a mortgage broker packages a bunch of loans and presents to an investment banker 100mil loans and a prospectus filed with the SEC. The investment banker goes to a credit agency pays a fee and gets a triple A rating. The investment banker then calls his salesmen to market the paper to funds, wealth individuals and other banks.
    I'm a salesman and I call you up and say I have a triple A mbs that your pension fund my want to buy. You buy for the pension fund and never read the prospectus which on page 127 says the value is not 80% but 95% meaning enclosed is non conforming loans. 18 months later the mbs is a problem.

     

    In that chain only one person besides the mortgage banker did wrong
    want to guess who it is
    22 Aug 2014, 12:47 PM Reply Like
  • Investorix
    , contributor
    Comments (33) | Send Message
     
    Mr. Banker- we are deviating from the main topic- responsibility of banks and bankers. I am not gonna continue the debate for in essence it seems that we agree on the main premises, but my concern is that bankers have turned into short-term focused people and this is damaging for the economy and banking itself. I just want to give you a rebuttal on the first point- it's not true that loses of honest investors will be funded by the taxpayers because you will save only your tax rate and if you lost paid-in- capital you may never get on your feet again or it will take a long time wheras if you are a bank you get a second chance and I think that's wrong.
    22 Aug 2014, 01:08 PM Reply Like
  • outofhere
    , contributor
    Comments (3694) | Send Message
     
    investorix

     

    Your getting confused a housing investor also comes under the capital gain provisions that you as a homeowner can't. The main problem is that the public for whatever reasons never do their homework and learn the rules and regulations. You should have been able to give me the correct answer to the mbs scenario seeing you worked in the industry.
    Don't be ashamed if you get it wrong so far 3 lawyer, 2 cpa and 2 dozen others got it wrong. Use the message center under my profile And I'll explain why the guilty are really innocent under the regulations. Too many people have low morals and don't do the right thing but the regulations people trust are many times jokes
    22 Aug 2014, 01:58 PM Reply Like
  • Ted Bear
    , contributor
    Comments (700) | Send Message
     
    The Junior Bankers do all the grunt work on "intermediary services in capital markets". They are the "interns" (recent graduates) who get the coffee, do the copying, crunch the numbers, draft the deal documents over and over and over again until there is something which a Senior Banker can put in front of their clients for review.

     

    The little grunts work night and day, weekends and holidays, and get on planes to just about anywhere.....at any time....all in search of the golden ring of being a Partner or Senior Banker.

     

    Historically these low lifes work a hundred hours a week, and are paid what appears to be "well" from the outside looking in, but from the inside they look more like serfs.

     

    When deals are flowing these grunts are in demand. When deal flow dries up they are tossed overboard....and can't find work.

     

    As one of them said a few years back when he was trying (and couldn't) to find another $300,000 year job pushing paper and crunching numbers: "I really thought I was worth that much".

     

    Then it dawned on him that he was just a slave being used by the wealthy to become even more wealthy.

     

    Of late, as everything has become more "process" oriented, banks have tried to reduce the grunts workload, and pay them more in line with the hours which they spend at the firm.

     

    I am sure that Goldman is not the least bit concerned.....
    21 Aug 2014, 07:15 AM Reply Like
  • Hardog
    , contributor
    Comments (16726) | Send Message
     
    Ted

     

    tks sounds like new CPAs or Lawyers working in the firms. It is up or out, terrible hours. I know been there.
    22 Aug 2014, 10:27 AM Reply Like
  • Kenneth Kensington
    , contributor
    Comments (9) | Send Message
     
    Good smoke screen for the Senior Bankers to get a bigger raise than the Junior Bankers, hope they publish the raises for each one.
    21 Aug 2014, 08:29 AM Reply Like
  • dictionshunary
    , contributor
    Comments (708) | Send Message
     
    Ease up. Mgmt knows more about managing than bloggers or producers of technical mumbo jumbo. Comments are valuable when backed up with solid knowledge or education. If negative comments are just from a party hurt due to a gambling habit of shorting or day trading they are worthless. Buy BAC at these levels and hold for an easy double within a year. Let solid managers do their jobs.
    21 Aug 2014, 08:39 AM Reply Like
  • stedorl
    , contributor
    Comments (2) | Send Message
     
    Was just "laid off" from Bank of America after 10 years with 1.5% to 2.5% annual pay increases. Jr Bankers get 20% pay increase? Give me a break!!!
    21 Aug 2014, 09:12 AM Reply Like
  • Ted Bear
    , contributor
    Comments (700) | Send Message
     
    I don't think we are talking about the paper pushers who sit in branch offices. Not to insult you, but these are just junior admin jobs with little skills requirement and more than likely result form participating in a "training program".

     

    The increase for "junior bankers" refers to investment bankers who are the underlings working on "deals". Acquisitions, mergers and capital markets issues. We're not talking about guys taking a car loan or mortgage application.
    22 Aug 2014, 08:10 AM Reply Like
  • Ron Myers
    , contributor
    Comments (255) | Send Message
     
    This is actually very shareholder friendly. The strategy is to have fewer senior staff and more junior staff at slightly higher pay. The cuts to senior staff have already been made. Comp will be flat overall.

     

    In addition, these days the top top talent with engineering/math skills (which are who most banks really want to hire) tend to be more attracted to tech and data analytics work, which often pays better, particularly on an hourly basis. And while the overall job market is mediocre, the job market for these folks is not. In fact it is blazing hot right now.
    21 Aug 2014, 09:20 AM Reply Like
  • Hardog
    , contributor
    Comments (16726) | Send Message
     
    Ron

     

    tks for the clarification.
    22 Aug 2014, 10:28 AM Reply Like
  • dictionshunary
    , contributor
    Comments (708) | Send Message
     
    Sorry stedori but seniority is what unions hang their hat on, not productivity or potential, or worth. Fun guy experienced same problem. BAC mgmt is doing its job by trimming fat. Good mgmt, good product, well known entity means BAC is the stock to buy and hold!
    21 Aug 2014, 12:17 PM Reply Like
  • devlau20
    , contributor
    Comments (595) | Send Message
     
    While BAC tanks & JPM flounders, this move helps share value? How? Why this now?
    21 Aug 2014, 01:31 PM Reply Like
  • outofhere
    , contributor
    Comments (3694) | Send Message
     
    devlau20
    todays price is the highest for JPM this month and the same for BAC
    21 Aug 2014, 01:48 PM Reply Like
  • devlau20
    , contributor
    Comments (595) | Send Message
     
    NYCTEXBANKER guy

     

    What is it that they say about a rising tide? Give it 2 weeks to play itself out.
    21 Aug 2014, 02:18 PM Reply Like
  • outofhere
    , contributor
    Comments (3694) | Send Message
     
    DEVALU20

     

    Right now we have above average movements and yes I expect a downturn the middle of Sept. I've stopped putting in new money and slowly taking money off the table. If my guess is right I will have the opportunity to buy a few stocks between 5 -10% lower than the prices of 8/29
    21 Aug 2014, 02:38 PM Reply Like
  • devlau20
    , contributor
    Comments (595) | Send Message
     
    Agree. Volley for serve.
    21 Aug 2014, 02:50 PM Reply Like
  • Phr3d
    , contributor
    Comments (444) | Send Message
     
    The trade price fall consistency in this sector is kinda' scary.. IF you watch it for only a year, days could make constant money.. not my line, though.
    22 Aug 2014, 02:13 AM Reply Like
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