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Bye-Bye, Bonus: Brexit Seen Biting Profit for Years at U.S. Banks

  • Analysts estimate second-quarter profit fell 18% at top firms
  • ‘Nobody is talking about having a great year,’ recruiter says
Bloomberg business news

Here's Why Brexit Will Impact All Bankers Bonuses

When U.S. banks post second-quarter results in days, it’ll boil down to this: Bonus cuts are coming for just about everyone this year, says Wall Street recruiter Richard Lipstein. “If you are break-even, it’s an achievement.”

That’s the picture taking shape as analysts trim estimates for the quarter and overhaul long-term projections for banks’ main businesses after the U.K.’s vote to leave the European Union. Starting this week, JPMorgan Chase & Co., Citigroup Inc. and Goldman Sachs Group Inc. probably will say they saw a quick bump in trading after the June 23 referendum, but that deals are stalling and years of pain lie ahead.