Here are your bonuses- $16,000,000,000+++

[Lurknomore]

http://www.nytimes.com/2006/12/13/busin...ace.html?_r=1&ref=business&oref=slogin

How the heck does one investment bank earn so much to give these huge bonuses?

Revenue- $37.7 B
Profit-$ 9.5 B

What would be the leading revenue generator? Oil futures, hedge funds? Or just a very healthy stock market? Please explain in layman terms.

 

[halik]

Well DIJA hovers around it's Zenith... it's not that hard to make money in a bull market.

Bonuses are nowhere near the average for most people, there is a small number of PMDs that make a killing and a whole lot of people that make good, but not ridiculous, amount of money. Equity and FICC trading has been a good money maker for the past couple of years, iirc investment banking makes about 1/3 of the other two.

For the record, bonuses are very comparable between the top tier banks... if you don't pay well, people will go work elsewhere.

 

[Lurknomore]

Yeah, I heard some will "only" make $10 mil, others $100mil.
Just staggering.:Q

 

[JS80]

GS acts more or less as a hedge fund because it's revenues are heavily based on trading.

 

[halik]

Originally posted by: Lurknomore
Yeah, I heard some will "only" make $10 mil, others $100mil.
Just staggering.:Q

Very few people make 100Mill, but there is a hefty number of people that do make millions.
One more fun tidbit, the bonus meetings are/were all this week

 

[Lurknomore]

Originally posted by: halik

Originally posted by: Lurknomore
Yeah, I heard some will "only" make $10 mil, others $100mil.
Just staggering.:Q

Very few people make 100Mill, but there is a hefty number of people that do make millions.
One more fun tidbit, the bonus meetings are/were all this week

Did you make like a bandit?

 

[tweakmm]

They are the market.

 

[Lurknomore]

Originally posted by: tweakmm
They are the market.

Kinda reminds me of OCP (Omni Consumer Products), the fictional megacorporation in Robocop- "We practically are the military.":laugh:

 

[halik]

Originally posted by: Lurknomore

Originally posted by: halik

Originally posted by: Lurknomore
Yeah, I heard some will "only" make $10 mil, others $100mil.
Just staggering.:Q

Very few people make 100Mill, but there is a hefty number of people that do make millions.
One more fun tidbit, the bonus meetings are/were all this week

Did you make like a bandit?

Unless you're ibank analyst (and maybe S&T, thouht i don't think so), first year analysts have bonus brackets. I had a rough idea of what it will be.

 

[shuttleboi]

Can someone tell me what the typical career path for an investment banker is? What should your major be in college? What kind of internships should you pursue?

 

[JS80]

Originally posted by: Lurknomore

Originally posted by: halik

Originally posted by: Lurknomore
Yeah, I heard some will "only" make $10 mil, others $100mil.
Just staggering.:Q

Very few people make 100Mill, but there is a hefty number of people that do make millions.
One more fun tidbit, the bonus meetings are/were all this week

Did you make like a bandit?

word on the street is first year analyst bonus is ~$100k for bulge bracket

 

[JS80]

Originally posted by: shuttleboi
Can someone tell me what the typical career path for an investment banker is? What should your major be in college? What kind of internships should you pursue?

aren't you an engineer?

 

[tweakmm]

Originally posted by: shuttleboi
Can someone tell me what the typical career path for an investment banker is? What should your major be in college? What kind of internships should you pursue?

Upper percentile graduation with a masters in finance from a top 20 B school.

 

[KK]

I see another enron in the making.

 

[JS80]

Originally posted by: tweakmm

Originally posted by: shuttleboi
Can someone tell me what the typical career path for an investment banker is? What should your major be in college? What kind of internships should you pursue?

Upper percentile graduation with a masters in finance from a top 20 B school.

errr wrong

 

[Albis]

finance is typical and internships with ibanks is pretty common as well (sp)

 

[shuttleboi]

Originally posted by: tweakmm

Originally posted by: shuttleboi
Can someone tell me what the typical career path for an investment banker is? What should your major be in college? What kind of internships should you pursue?

Upper percentile graduation with a masters in finance from a top 20 B school.

What about undergrad? Should one major in business or accounting in college?

Or is business school most important?

 

[halik]

Originally posted by: JS80

Originally posted by: tweakmm

Originally posted by: shuttleboi
Can someone tell me what the typical career path for an investment banker is? What should your major be in college? What kind of internships should you pursue?

Upper percentile graduation with a masters in finance from a top 20 B school.

errr wrong

very

 

[tweakmm]

 

[tweakmm]

Originally posted by: halik

Originally posted by: JS80

Originally posted by: tweakmm

Originally posted by: shuttleboi
Can someone tell me what the typical career path for an investment banker is? What should your major be in college? What kind of internships should you pursue?

Upper percentile graduation with a masters in finance from a top 20 B school.

errr wrong

very

Interesting, I thought that was pretty much standard to get a job with one of the big players. I was considering going down that path and was told basically that by someone who I thought knew what they were talking about.

What is the path to get a job at GS?

 

[skim milk]

wall street here I come!

 

[Albis]

most analysts start off with a bba / economics / finance degree from a respected school

 

[Nerva]

Originally posted by: JS80
GS acts more or less as a hedge fund because it's revenues are heavily based on trading.

no its not. it's m&a is strong too.

 

[JS80]

Originally posted by: shuttleboi

Originally posted by: tweakmm

Originally posted by: shuttleboi
Can someone tell me what the typical career path for an investment banker is? What should your major be in college? What kind of internships should you pursue?

Upper percentile graduation with a masters in finance from a top 20 B school.

What about undergrad? Should one major in business or accounting in college?

Or is business school most important?

undergrad with high GPA any major but finance "preferred"
have internship or something on the resume to stand out
nail the interview - good rapport and answer brain teasers out loud in a logical manner.

Congrats you made it as an analyst
-slave for 2 years
-apply to b-school or
-get promoted to associate or
-Private Equity, Hedge Fund, Investment Management, Biz Dev, whatever floats your boat

Go to b-school
-top 10 or no.
-go back and be an associate

Associate
Buy a Ferrari
VP
Buy a Bentley
Director/Principal/MD
Marry a Hilton
Billionaire

Buy stupid art. CEO. CFO. Go to jail ala Enron.

 

[PAB]

Originally posted by: Lurknomore
What would be the leading revenue generator? Oil futures, hedge funds? Or just a very healthy stock market? Please explain in layman terms.

Investment banks generate revenue by trading and by undewriting profit.

Just to give an example, Goldman Sachs is one of if not biggest investment banks. Everytime Merill Lynch and GS get together and do an offering, they make in the hundreds of millions of dollars just in underwriting comissions.

I have a prospectus on my desk right now for a citigroup offering - underwriters get 94 cents a share, totalling 122 million just on comissions.

Investment bankers are also paid by bonuses, salaries give you what you need to live but bonuses are where the real money is. It's not like you get a million dollars a year and a $150,000 bonus, but rather the other way around.