Wall Street Tempers Bonus Expectations

The video discusses the impact of the pandemic on bankers' and traders' bonuses, highlighting that despite increased trading revenue, bonuses may not rise significantly due to economic strains. JP Morgan and Goldman Sachs are expected to be more generous, while Citigroup and Bank of America may remain conservative. The competitive job market makes it difficult for dissatisfied traders to switch jobs. Political scrutiny and economic conditions influence banks to adopt a conservative approach to bonuses to avoid negative optics.

In what ways does public perception influence banks' decisions regarding bonuses?

Why might banks choose to be conservative with their bonus payouts this year?