U.K. Bonuses Might Shrink By 25% This Year
As the subprime crisis spreads and bank revenues take a hit some are predicting that bonuses might fall by as much as a quarter from year ago levels in the U.K., reports Reuters UK. “Banks are having significant increases in their costs. They can't access liquidity as cheaply as before," said Jonathan Said, a senior economist at the Centre for Economics and Business Research. “The first costs that you take off are bonuses.” As recently as six weeks ago, the centre had been estimating that this year’s bonuses would be greater than last year’s. Last year approximately 4,200 bankers received bonuses greater than £1 million.