Thursday, 18 December 2014
Last updated 3 hours ago
Feb 25 2010 | 12:56pm ET
Morgan Stanley Chairman John Mack believes investment bankers are overpaid, and he pointed a finger at hedge funds to explain why that is.
Mack, who stepped down as CEO of the Wall Street giant at the end of last year, said banks fear a brain drain to better-paying hedge funds. He cited one example of a 28-year-old trader at Morgan Stanley whose unit had earned between $300 million and $400 million for the firm. The firm lost the trader to a hedge fund which offered a pay package totaling $25 million, more than twice Morgan Stanley’s offer.
Regrettable as that may be, Mack warned that investment banks must reform.
“If we don’t do something, the government will do something,” he said at a forum at Charlotte, N.C.’s Queens University. And he had harsh words for his banking brethren.
“I still don’t think the industry gets it,” he said. “The issue is not structure, it is amount.”
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.