BNP has had a very bad patch, no doubt, though not nearly as bad as many on Wall Street. There has been no shortage of tumbling profits though not the same hideously negative earnings as we've become accustomed to seeing in London or New York. While some Wall Street banks are still debating whether or not they deserve bonuses due to negative growth and a lifeline by the government, BNP is cutting bonuses to match the decline in income. What a crazy idea.
French bank BNP Paribas may slash bonuses for employees in its corporate and investment banking unit by more than 70%, according to a Bloomberg report. Jacques d'Estais, head of the division, said in a memo to staff that pretax profit had fallen nearly 73% in the first nine months of the year and the overall bonus pool is likely to show the same decrease compared to the previous year, the report said. It added that the majority of employees will get a smaller bonus and more people than in the past will receive no bonus at all.
