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Free Vegas Trips, Cocaine And Hookers: A Peek At Real Banker Life
Think frontrunning clients, trading against recommendations, manipulating LIBOR, and slamming gold at the London fixing is all investment bankers do? Wrong. What really happens in banker life is far more exciting and enjoyable (at least for preferred banker clients) as the following story by the WSJ's David Enrich shows.
In reality, the activities that bankers seem to spend the most time on, is treating their "preferred clients" with free gambling trips to Las Vegas, skiing in Chamonix, flying wives and girlfriends in helicopters, doing blow in industrial amounts, and, of course, cavorting with strippers and hookers. All paid for by some unwitting clients of course. It is this environment of utter and perfectly permitted, if not encouraged, debauchery that allowed scandals such as the Libor fixing "conspiracy" (first theory, then fact of course), to flourish, and which makes being a banker still the most desired job in the world (contrary to beliefs that it was all about the passion of crunching goalseeked DCFs at 2 am in the morning).
A quick summary of what really goes on behind the glass doors:
And a more detailed one:
Neil Danziger's trades for Royal Bank of Scotland Group PLC generated rich commissions for the brokers who handled them. In return brokers at London's Tullett Prebon PLC took Mr. Danziger to London strip clubs and spent long weekends with him in Las Vegas... Brokers at R.P. Martin Holdings Ltd., another London firm, gave him early access to lucrative trades, these people say.
...
[B]rokers routinely reward valued traders by returning a percentage of their commissions in the form of entertainment. Brokers have paid for traders to spend weekends in the Alps and Saint-Tropez, and on occasion, have even bought them cocaine or prostitutes, according to people who witnessed such activity.
....
The London brokers and traders interviewed by the Journal estimated that roughly 5% of the brokerage commissions a trader generates often come back to the trader in the form of various perks. It isn't uncommon for a brokerage to spend $50,000 a year entertaining a single trader, they say.
While plenty of client entertainment takes place on Wall Street, traders and brokers say such activity is even more prevalent in London.
As recently as last summer, BGC Partners Inc., a New York-based brokerage, dispatched limousines to the homes of top traders at London banks. The limos ferried the traders' wives and girlfriends to a helicopter, which flew them to the Royal Ascot—a marquee event on London's social calendar—for a day of horse races, according to people familiar with the event.
ICAP has treated traders to ski weekends in Chamonix, France, according to a former bank trader who attended.
Several former brokers and bank traders said they witnessed brokers providing clients with cocaine or prostitutes.
Compliance departments at some brokerage firms cross-check brokers' entertainment expenses against a "banned list" that includes a database of major strip clubs.
Brokers take traders to strip clubs anyway, according to former traders and brokers. When taking traders to strip clubs, Tullett brokers sometimes paid cash out of their own pockets, according to one trader who participated. The trader said the brokers told him they expected to be reimbursed after submitting inflated expenses for taxis.
In a separate incident, after one broker took a trader to Las Vegas, the trader sent a batch of orders to a rival brokerage, prompting the broker to send an angry missive to the trader demanding to know why, according to a person who read the note.
In one of the few cases brought, the Financial Services Authority in 2010 banned from the industry a broker at Tradition Financial Services, Fabio De Biase, for showering a hedge-fund trader with approximately £131,000 ($200,000) worth of cash, gift vouchers and gold bullion in exchange for higher commissions. The agency said Mr. De Biase violated an FSA guideline that requires finance-industry professionals to "act with integrity."
While the FSA didn't take any enforcement action, police in London are now investigating whether brokers provided illegal kickbacks, these people say. "There aren't specific rules about whether you can send your clients to go see prostitutes," an FSA spokesman said. "You have to pick what sort of things you look at as a regulator." (Prostitution itself isn't illegal in the U.K., but soliciting a prostitute in public is.)
Why the lavish entertainment expenses that make working 20 hour days, enjoyable? (and the millions in comp, of course). Very simple - (s)quid pro quo of course.
One former ICAP derivatives broker says the morning after treating a trader to a night out, "there would be a line of trades for me. I didn't even have to ask."
The difficulty of proving a quid pro quo helps explain why British authorities seldom go after brokers for lavish entertaining, according to industry participants and lawyers.
And, of course:
U.S. and British authorities believe that brokers' eagerness to please trading clients played a key role in the Libor scandal.
Damn, it feels good to be a banskter...
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AIG. Once broke and after bailout they had a 1M dollar party somewhere and they went on private jets
"Damn, it feels good to be a banskter..."
http://www.leveragedsellout.com/
If you want to stop the bankers - here's what you have to do.
http://www.ft.com/cms/s/0/8dd877a2-b315-11e2-95b3-00144feabdc0.html#axzz2S97O2lvu
Attack them from all angles.
Goldman Sachs tax evaders extraordinairre - surely they avoid US tax too.
Time for the people to use the constitution against the criminal state - as it was intended.
Sounds like France isn't the only place they went skiing. Moutains of white in Vegas, plenty of blizzards.
May they all get the new strain of he clap that is drug resistant and kills within three days.
That's too quick of a kill date for the transmission method, stds kill better near around a month, with an escalating severity that isn't apparent until at least a few weeks after infection.
Meanwhile, on main street, if you happen to have lost your job due to banker hijinx, you receive this notice about unemployment compensation:
"The Budget Control Act of 2011 (Public Law 112-25), also known as "sequestration," requires across-the-board budget reductions to many federal programs, including the EUC program. As a result of this, EUC claims effective on or after April 28, 2013 will have a 17% reduction of the weekly and maximum benefit amount. When you meet the eligibility requirements for regular unemployment insurance benefits, you will no longer be eligible for EUC benefits."
Yet ANOTHER reason why 9/11 was funny...
Interesting article, have already looked up Lady Marmalade Parties and I am intrigued. :)
9 But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition. 10 For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.
1 Timothy 6
King James Bible
http://www.ladymarmaladeparties.com/info/membership
http://www.dee-escort.co.uk/
http://selinajones.com/
http://vipcyprusescorts.com/
Most are in the UK, but one is in Cyprus, which piqued my interest as well. Websites made by the 69Design guys.
Very nice.
There is a cure for their disease.
Bubble Bernanke and the Fed are flooding the banks with so QE money it has to go somewhere.
Bernanke, Evans, Dudley and Yellen are all supporting prostitution and drugs. No surprise from a criminal institution called the Fed.
Prostitutes and their pimps.
I partied like that with no money back when I had my freak flag... and the women were free... and most of the coke. I miss those daze.
I don't...
Romanesque...ALL Empires go down the SAME tube (or pipe as the case may be)
Not just regular hookers for these guys... teenage and child hookers.
Top traders at London banks are married to horses. I have seen a few of them, so I know.
It seems common in Southern England. The Royal Family sets the trend and Cameron likewise
Smart if they married work horses.
Are we really surprised here?
If that is what they do for traders you can see why polificians are compliant. It is typical corruption and I bet our Saudi friends know just how to lavish attention on Western politicians and security agencies. It is the typical corruption you expect to find in dark pools
Those pussies couldn't ski Cham to save their lives. Pretty much hang out in the wine bar chatting with Ukrainian hooker.
There was a time of life when this sort of story would have left me absolutely outraged over these people. Now it just leaves me sad for them. I can imagine the huge gaping vacuum they must have in their souls that they have to try to plug it with all that moral filth.
It must be interesting meeting these people on their death beds
Yeah, I don't get it. You have all this money, and you go and spend it on cocaine, hookers and booze? Really? That's all they could come up with? There's all kinds of cool shit in the world--they could travel, explore, learn to fly, race a car, open a business, etc., etc.--but they're choice is to get wasted and screw whores? LOLOLOLOL...you think they would at least try to PRETEND that they're not just vapid, should-have-been-aborted monkeys....
The spring STANY parties back in the late 70s and 80s were no slouch. Plenty of blow and weed and you didn't need hookers because all the broker chicks wanted to get laid anyway...oh, the good ole daze!
Easy money earned by the bankers (after sharing it with the politicians to keep them out of prison and making the taxpayers bear the losses) while ripping of customers, rigging the markets and driving a majority of population towards unemployment and poverty is being put to excellent use.
llusion of Democracy today.
People sponsored by the rich, make false promises to the masses to get elected. Distribute national wealth amongst themselves and their sponsors (Industrialists) and when that is not enough borrow money from rest of the world and continue the distribution process. The borrowed money has to be paid back by taxing the masses keeping in mind that tax rules are made such that the politicians and their sponsors pay minimum or no taxes.
End of political tenure, rinse and repeat till the whole system breaks down and the world wealth is cornered by a miniscule of the population.
http://www.marketoracle.co.uk/Article40231.html
Tell me something that isn't blatantly obvious and has been ocurring forever.
You shouldn't have published this story. Now teenagers will want to go into banking instead of something not-evil.
Well, shallow as shallow can be. You know, normally I wouldn't bother. If you want to spend your life like that - fine, not my problem. But they've taken vulnerable people as hostages and they've crossed a line...
Btw:
Tyler, you should run a story about the two German jokers at S&K. Would make a great story and add to that picture.
http://www.guardian.co.uk/politics/2013/may/02/tax-chief-bank-goldman-sachs
Whats 20 million among friends?
They better enjoy now while they still can. Real bad stuff coming this year.
Gawd I love vegas hookers.
I wish I could build a mini-New Orleans in the West Virginia mountains, complete with all of the above. Skiing, casinos, clubs, hookers, drugs, no state reciprocity, a private airport. Express party Trains to bmore, DC and Philly. None of this flying to Vegas or Vale
Whatever. This is how business gets done. The oil and gas industry is just as hilarious.
"Whatever. This is how business gets done. The oil and gas industry is just as hilarious."
That doesn't make it any less boring, predictable and retarded...
Tyler, could you please take the sleezy picture off the main page of this story. I love reading ZH and normally these articals slide down the page quickly, but this has been first and center all day. It's offensive!!!!
Lighten up, Sandy. Cripes.
Fix Libor and get a slot at Lady Marmalade's...
sounds good to me....
http://tpmdc.talkingpointsmemo.com/2013/05/armed-rebellion-poll.php
Eighteen percent of Democrats said an armed revolt “might be necessary,” as compared to 27 percent of independents and 44 percent of Republicans.
Three in 10 registered American voters believe an armed rebellion might be necessary in the next few years, according to the results of a poll released Wednesday by Fairleigh Dickinson University’s PublicMind.
The survey, aimed at measuring public attitudes toward gun issues, found that 29 percent of Americans agree with the statement, “In the next few years, an armed revolution might be necessary in order to protect our liberties.” An additional five percent were unsure.
I wonder who gets better hookers and better blow - Bankers or Congress?...
Bankers. Not even a close call.
http://jessescrossroadscafe.blogspot.ca/2013/05/jeff-sachs-movie.html
remarkable speech from Jeff Sachs, thanks jesses
blow is soooooo 80's.....