February 10th, 2009: UBS, the world’s biggest banker to the rich, as a disastrous expansion into investment banking, reported a bigger-than-expected 8.1 billion Swiss franc ($7 billion) net loss in the fourth quarter and an annual loss of 19.7 billion francs, the biggest ever by a Swiss company and above predictions for 18.7 billion francs.
March 2nd, 2009: UBS, the world’s biggest banker to the rich, reported to increase salaries for senior bankers to about 300,000 pounds ($429,400) from about 120,000 pounds ($171,800).
If this was a small business, say, the Pizza place around your block, nobody would have gotten a raise if the business was losing money while the Pizza industry was collapsing. Nobody.
There is no place in the western world where one could not live in prosperity for $171,800 / year. Hence, there is no reason to double the pay of anyone until the bank is profitable again.
There is also no risk of people leaving in case salaries are not raised. That is because nobody is hiring.
Once again, this shows that something is broken. Banks get tax payers dollars and use them to double up salaries.
After all, if you kept your job, it seems like it’s a good time to be a banker. Somebody strong is watching out for you, making sure you keep your high standard of living though you lost billions of dollars of our money by making bad investment decisions. Good for you.