Bankers drown their sorrows in Manhattan bars

The merits of government intervention against the ongoing market turbulence were debated throughout watering holes in downtown Manhattan as bankers let off steam before preparing themselves for a fresh onslaught today.

A senior vice-president of an investment bank, identified only as Kabir, said: "Most people in banking are pretty downcast and the bail-out failure - although in some ways a form of socialism that many bankers opposed - has added to the gloom.

"They're not looking forward to the next few months. It's not just firms that are struggling where there are going to be cuts but firms that have been doing OK. Whether you're a mortgage trader or work in debt markets, you're worried.

"Unless you're at Citigroup, JP Morgan, Chase or Bank of America, the ton of money you were making could well be coming to an end."

John De Lauro, 46, who works in sales for Bloomberg and lives on the Upper East Side in Manhattan, fumed at Congress's rejection of the bail-out deal. He said: "What we saw was the biggest collection of buffoons that have absolutely no idea what is the right thing to do. These guys in the Congress are gearing up for the election rather than serving the wider economic interest." His friend Paul, who works for Citigroup, was in a chipper mood after his bank's acquisition of Wachovia, America's fourth-largest bank. "It was a good day for us," he said. "We bought Wachovia for a song - one dollar a share. We're building up a useful collection of bricks and mortar."

At the Stone Street Tavern, financial recruitment executive Mark Allen, from Queens, had a different view. He said: "It's all these Ivy League f***s. They're machine-orientated f***s who sold undesirable mortgages to people who could not afford them."

Mr Allen, 38, said: "The government, instead of paying $700 billion of taxpayers' money to the companies that got us in this mess, could give each US taxpayer $300,000."