The Fourteenth Banker Blog

April 15, 2010

Confirmation

Filed under: Running Commentary — thefourteenthbanker @ 3:46 PM

This is a comment from a reader.    It has been very slightly Xd out to protect identity, but I believe it deserves to be highlighted.

I came upon your blog yesterday thanks to the good folks at Huffington Post, and have been completely intrigued at what’s been written so far. In a former “life” (I am a stay at home dad now at age XX) I was a Vice President (for 1X years at the same Bank) in Incentive Compensation for one of the major Wall Street Banks that took TARP funds. My position involved financial modeling, creation of and maintaining an Incentive budget for the XXXXXXXXXXXX Incentive Program, and payout of the incentives. My position was downsized in 20XX after we bought another large bank (and their guys took over Retail, which spelled doom for a lot of us when they IMMEDIATELY implemented their Incentive Program). If the shareholders knew the waste I saw and the casual and flippant attitude at PAYING someone who CLEARLY didn’t deserve it (but was, because of the lawsuit threat). I tried in vain to stop this (and other) practices which I saw as not only wasteful, but immoral as well. It was practically legal theft, with SVP’s gladly participating to ensure that their people ALL get something, despite them not actually EARNING it.

Obviously, I am still under a gag order that I signed (in order to receive a most generous Severance) so I cannot go into detail here. If you ever wish to correspond by e-mail, I could let you know what went on during my time in Incentive Planning from 19XX-20XX; the last two years spent one level below SVP running the show on a day to day basis. When I just read this last post, I could swear that we probably worked for the same organization…unless these practices are incredibly widespread across various Wall St Banks.

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3 Comments »

  1. These practices are widespread even among regionals and why wouldn’t they be? Afterall the regionals need to keep there folks happy too!

    In fact employees that buy into the system, that is, game the system are generally looked at as future leaders because they are considered ” practical”, someone who understands ” how the system works and doesn’t unnecessarily waste time and energy fighting it” afterall one manager is not going to change the whole system.

    Comment by Vocalbanker — April 16, 2010 @ 1:49 AM | Reply

  2. It appears that just like our Congress Critters, when one joins the ranks of either organization and begins to see the rot, they have two choices – they either flee with their conscience in tact or they turn to the dark side, often by telling themselves “well, that’s just how the game is played.”

    Is there some philosophical prohibition that precludes this outcome? Is “honest broker” an oxymoron?

    Comment by Sandi — April 16, 2010 @ 4:00 AM | Reply

  3. “These practices are widespread even among regionals.”

    Unquestionably. Given that fact, this blog should not limit its scope to the very large institutions. Reporting from insiders at all sizes and types of financial institutions (and regulators, for that matter) should and must be strongly encouraged.

    Thank you for this website.

    Comment by Shoto — April 16, 2010 @ 4:52 AM | Reply


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