Jack Welch: "Best year for Wall Street since the turn of the century"

[Bush_Eats_Beef]

STREET LIFE
Conspicuous Resumption
On Wall Street a fat year means big bonuses. Let the party begin.
By Andy Serwer

This holiday season is shaping up to be especially joyous on Wall Street—so filled with good cheer and fat bonuses (not necessarily in that order) that some very well-off folks far from the Street are taking notice. I was up in Boston the other day visiting with Jack Welch at his magnificent townhouse on Beacon Hill. We were having a wide-ranging discussion when at one point the talk turned to Wall Street, and the legendary retired CEO of GE began marveling at what a splendiferous year 2005 has been for bankers and brokers. "Flush times down there," he said in his trademark rasp. "I think they are going to have their best year since the turn of the century."

Yes, bonus expectations couldn't be higher. And by all accounts they will be met. Not that the markets soared this year. While certain sectors were obviously stud performers (even after giving back gains recently, the NYSE energy index is still up 26% year to date), the major stock indexes are all hovering around flat (bonds haven't been great shakes either). But there was plenty of volatility, which is always a good thing for the men and women with a piece of the action. And despite the one-two-three economic punches of hurricanes Katrina, Rita, and Wilma, there was no autumn swoon on the Street.

In fact, with oil and gasoline prices falling, the fourth quarter is shaping up to be a humdinger, and confidence on the Street is running high. Yes, Delphi and Delta went into Chapter 11. But bankruptcies actually create business for Wall Street. And, yes, there was one itsy Enron-esque debacle (the implosion of Refco), but the damage appears to be contained. All in all, 2005 has been pretty much devoid of morale-sapping events. And most important of all for the i-bankers, the business of mergers and acquisitions clicked into high gear after years of subpar activity.

Okay, so just how big will the bucks be? Jacques Nordeman, CEO of Nordeman Grimm, an executive-search firm that specializes in recruiting top-notch Wall Street bankers, says that top performers among his clientele can expect to see bonuses 20% to 30% higher this year than last. For investment bankers at the top of the food chain (those with at least ten years' experience and base pay of about $250,000), we are talking about bonuses as high as $2 million to $3 million or more. That's some serious scratch.

http://www.fortune.com/fortune/streetlife/0,15704,1134607,00.html?cnn=yes

[Oreo]

1. We all know how well that turned out

Wall Street was doing great in the 20's too

[zbdent]

7. We're in 1934 right now

except that we weren't able to get an FDR in.

We did get a guy in that makes Dan Quayle look presidential, and Gerald Ford look good . . . jk

[mr_hat]

2. Wow! That's like 90 odd... Nevermind.

[LSparkle]

3. This will somehow make its way into Jack Cafferty's questions today

Just you wait -- on "The Situation Room."

[Flubadubya]

4. Ah yes, the "haves" and the "have mores"...

isn't that just the most jocular banter ever to pass the lips of the most privileged president the country has ever known? Better than hitting the trifecta, wouldn't you say? :sarcasm:

[AX10]

5. Well Jack, you are right. This has been a good year for the...

affluent bankers and financiers, oilmen, defense contractors, and brokers. The affluent top 5% are doing very well this year Jack, just as they did in 1928 too. Remember what happened after that Jack?

[stepnw1f]

6. What A Sad Picture

That fat guy looks so grubby and greedy, like a little stuffed pig. He smiles but looks miserable. It's rather weird...

[bananas]

8. The turn of the century was five years ago

[Bush_Eats_Beef]

9. I'm not convinced that Jack is aware of that...

...being the crazy, evil old fuck that he is.



:evilgrin: