There are many times when working alongside the TCC team I have to smile.
Having read a City AM article by our own Dr. Jamie Whyte earlier the morning I hope this makes you smile too.
Strippers and bankers’ just rewards
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And yet this does not happen. Perhaps Mr Whyte could explain why.
There is an element of this happening already in that in the US investment banks, internships are sometimes paid for rather than paid. It appears the entry ticket into the game is all-important. It is much easier to get a job having shown some experience.
I think Mr Whyte is missing an important point. If the most attractive investment bank took his advice, then the best talent would be attracted to the banks paying a salary and they would have to take the leftovers. Unless of course they increased the 15% commission to the point that they once again became the most attractive option. But now we are just playing the age-old game of commissions only vs salary plus commissions, nothing new. To be sure, the best talent would go to the commission-only bank. They would be the traders with the confidence that they would not go hungry, and only experienced traders would have the cash to pay for the placement. In the end the banks would lose, paying out far more in compensation than if they had offered a salary and a lower commission rate.