Main Street are angry now. Paying trader big bonus will hurt our public image. We need to make our Main Street clients happy.
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@OP+19guFgL5
Trader can make money mostly because they have access to our client flow, balance sheet and platform.
Also, bonus is not about performance, it’s about supply and demand. If there is an oversupply of traders, then company can pay whatever it like.
BofA is successful now and will only be more successful in future. We will gain more market share and our competitors will be diminished . Their traders will lose jobs and then create a even bigger oversupply. At that time, BofA can achieve more cost efficiency through lowering compensation cost for certain high paying jobs.
In ideal case, we can even influent industry pay.
Retail clients are a usually net negative profitability wise for the bank, high net worth clients bring in the deposits that are a cheap source of funding. Keeping high net worth clients happy is more important then keeping retail clients happy.
Also why would paying traders big bonuses when they generate higher revenue for the bank? They're rewarded based on their performance, and those jobs are hard to get because you have to be intelligent. You can't fake it till you make it in those roles.