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4,000 City jobs axed as Lehman folds
Jonathan Prynn, Consumer Affairs Editor15.09.08
More than 4,000 City workers lost their jobs today after a US investment bank folded.
Staff were clearing their desks at the Canary Wharf headquarters of Lehman Brothers. Another 1,000 jobs at the bank's offices in High Wycombe are also in doubt.
Meanwhile, America's biggest insurance group and Manchester United sponsor, AIG, became the latest financial giant to teeter when its shares almost halved at the start of trading in New York. It has a UK workforce of 3,000.
Senior Lehman Brothers staff in London were told late last night that efforts to save it had failed. They passed the news on to their teams at 8.30 this morning. Shocked workers began to emerge shortly afterwards, not knowing whether they will be paid this month. Many were clutching boxes of belongings, some carrying cases of vintage wine. Headhunters set up makeshift recruitment offices in coffee shops in Canary Wharf as hundreds of jobless bankers began the search for work. Investment banker Koen Thijssen, 23, was one of the first to leave the HQ. He said all staff were now clearing their belongings from the building, adding: "The company has ceased to exist so there is not much to say."
Kirsty McCluskey, 32, who worked on the trading floor, said: "It is terrible. Death. It's like a massive earthquake. It's final. Everybody is just finishing up."
The 32-year-old from Canada Water said staff were filling in expenses before removing their property from desks.
The collapse means everyone entitled to a bonus, some of at least £1million, will now get nothing.
A fitness instructor who ran a class at the bank told how distressed employees were drowning their sorrows in the staff canteen.
Sphinx Patterson, 35, said numerous staff were drinking beer in the canteen on the seventh floor of the Canary Wharf skyscraper. He said: "People are walking around in shock. Girls are crying, blokes hugging each other. People don't know what to do." Mr Patterson, from Willesden, who was told his classes had been cancelled, added: "It's not just the high-fliers who are losing their jobs. I spoke to a receptionist and she was packing up her pens."
Trush Patel, 25, who works in finance, said others were in the canteen using up the last of their credit on their canteen cards.
Frenchman Edouard d'Archimbaud, 24, was due to begin his first day as a £45,000-a-year trader at Lehman Brothers today. He said: "I had trouble getting here because of the Eurostar fire. When I finally made it I found out I was fired. We are all fired."
Marion Guilbert, 36, also from France, who has worked in sales for seven years at Lehman Brothers, is expecting twins in two months.
She said: "It is very emotional and even more emotional for a pregnant woman. But at least I have something to look forward to."
Graduate trainee Jack Reynolds, who has been at the company for just one week, left the building carrying a Lehman Brothers umbrella and rugby ball.
He said: "My career has been halted at the first hurdle. Everyone is upset and down but they've just got to get on with it."
John Collins, 40, who worked in equity derivatives product control, said he was told not to come back tomorrow. "People are just trying to come to terms with the shock of it."
Angry staff blamed chairman and chief executive officer Richard Fuld for the collapse, citing failed discussions to sell last week as the cause.
A trader, who would not give his name, said: "I would have made one million dollars this year so I don't give a stuff about a month's wages. The bank should have been sold last week but they were holding out for more money. It is the CEO's fault."
Reader views (71)
Here's a sample of the latest views published.
Simply put:
Wealth must become equally divided amongst the worlds citizens.
Wage/bonus payments to any person (sport figures incl'd) should not exceed 1 order magnitude greater than that required for a basic standard of living.
Excess is the downfall of all great things. When one person takes/receives an excess - it is taken directly from the mouths of others. Will the world never learn?
- Enrico, Reading, UK
They were not overpaid to get top talent you have to pay top dollar and the amount of returns invesment bankers make their clients and employer is why they are so well paid. most investment bankers work dam hard for their money working long hours so what if they earn several million dolars actors and footbalers do and people don't have a problem with that but anybody who has any IQ gets slated as overpiad. There are a lot of people's life's now wrecked from the top traders down to the security guards. But the London staff have seemed to have been treated unfair as newyork staff will proberly get paid their last month pay. The goverment should try and help someway.
- David, Swansea, UK
Its their own greed which has been the downfall of these companies. I only feel sorry for the customers on the street who have been ripped off for years to pay for the million pound bonuses!!!
- Mark Clark, Rainham
Its very bad to know about the fall of another icon in the investment sector...feel very sad about the people who came to work after the weekend only to find they no longer have to work anymore.It will defnitely have an impact if not now maybe later
- Himayun, Leeds
A million dollars salary or bonus, totally over paid, no wonder the company went down.
- Sarah, Pasadena, CA USA
It's unfortunate so many of you don't give a rat's ass about the plight facing the work force laid off today.But that's the British way isn't it.
That is why i now live in Canada.
- Charlie Greenwell, ottawa ontario canada
Ali said:
"Also - the majority of those employed by Lehman Brothers were aware of the company's erosion and demise as early as January this year and, in my estimation, foresaw what was ahead...unlike the employees of the XL Airline that had no notice whatsoever!"
What a dumb argument and oh so false...if this was true, then probably Lehman would still be around at this moment. I suggest you keep your mouth shut when you don't know what you are talking about.
the argument could be countered by saying that if Lehman had sruvived due to someone actually buying them, then everyone would have been nonethewiser. Hindsight is a beautiful thing, it usually allows dumb people to try and make themselves look smart. It's easy to retrospectively assess something and talk nonesense...
- Guest, London
I'd be genuinely interested to know how the gentleman was expecting to earn $1 million this year in an insolvent company whose trading patterns were obviously defective. Did he not know that his company was heading for bankruptcy? The nature of his financial expertise is what, precisely?
Banks make money largely not by creating wealth (providing investment in new enterprises) but by handling and transferring it in one form or another. That such a menial task seizes such a chunk of the world's wealth indicates a seriously flawed model: you don't have to be a fervent Marxist to believe this.
PS The fall in price of a house DOES have a benefit: to the people previously priced out of the market by the loans based on crazy multiples of income, which pumped money into the housing market out of all proportion to intrinsic value (there is such a thing, not just price). The kind of loans which Lehmans were no doubt making as avidly and recklessly as many others. One can feel sorry for the footsoldiers while still being satisfaction that their side lost.
- Mdj, Leyton, e10 london
Please bear in mind that most of the people who lost their jobs today were not rich fat cat traders, disappointed that they won't get their 6- or 7-figure bonuses this year. Most of the staff of any investment bank are honest working stiffs just as in any large corporate - administrators, PAs, secretaries, programmers, porters, canteen staff etc. At a guess no more than 25% of the bank would be rich executives and spoiled traders. More honest folk than millionaires are suffering here.
- Paul, London, UK
I always thought companies had auditors and actuaries to assess integrity and risk. Clearly those qualified are not in leadership positions. Many of the cowboy telecom and dot com bubble bursting companies were also products of short term sales strategies overriding medium term financial safeguards. If leaders can pay themselves life changing bonuses within months they do not care what happens 3 years down the line when the consequences of their greed unravel. Stop excessive short term bonuses.
- Nick London, London UK
I can't say that my heart bleeds for any of these people. They are all absolutely ridiculously overpaid for what they do. In recent years, the big banks have mostly behaved recklessly and arrogantly, lending money to unsuitable borrowers, rewarding themselves with huge bonuses and expecting the government to bail them out - which it has, when it shouldn't have seeing as it never bails out any other industry. Maybe some of theses bankers will be forced to sell their multi million pound Kensington terraces and Knightsbridge apartments and move somewhere "absolutely ghastly darling" - serves them right.
- Mick, Hackney, London
I have spent most of the past 10 years working in the City in one of them support roles that pay average salaries (design) so I can see both sides. 5 years ago I once returned from lunch to my desk at one of the largest European banks to find my colleague and best friend had 'mysteriously disappeared'. He rang my mobile trying to tell me what had happened but one of the managers snatched it right from my ear. I was taken to a little room for questioning and treated like a suspected terrorist (down to being escorted to the loo, a windowless room on the 5th floor!). All this for allegedly displaying designs on a personal website and just 10 days after outsourcing our dept, with some of the work relocated to India. The manager who snatched my phone also had to leave as a result of the outsourcing and she didn't waste any time taking her revenge: My colleague got fired and she even contacted a major US bank to get a close friend of mine fired just because we often exchanged emails! The Lehmans guys were lucky to get a chance to clear their desks, I didn't and neither did my 2 friends! Someone picked up my bag, the rest was just left there. That was my last permanent job, I've been contracting and freelancing ever since. There will be other opportunities for the secs, IT guys and other support folk but no-one deserves £1m bonus no matter how many hours they work, at $25/hr (a high rate for a support role)you'd need to work 40,000 hrs/year and there are just 8760 hs in a year!
- Aida, Kent, UK
S*** happens - and it when it does, it happens in 3's. Its just shocking that events can fold a company like this that is so old, was worth billions and now - nothing.
This was predicted by a US economist only months ago in the FT.
- The Economist, N3, London, England
The business was losing millions and paying staff millions. What did you expect was going to happen ? Anyway want to buy a second home in Fulham, will clean up with this.
- Robert Sylvester, Fulham, LONDON, UK
To all the small, petty people taking pleasure in others' misfortunes - What is now happening in the world will affect you and me and all of us, with no doubt. Today you laugh at bankers tomorrow others may be laughing at you, unless you are on the dole.
- Kt, Cap Ferrat FRANCE
Grown men weep on the street and drink beer in the canteen when employment levels in the financial sector drop by 0.4%. Doom threatens the global economy as bankers grasp the concept of performance related bonuses.
- Jonny Blamey, London UK
I have been working in Lehman’s for the past 4 years on and off, as part of the infrastructure engineering team
As for huge salaries that are reported to be earned this is a farce on the Medias point of view, the average employee at Lehman’s is to service the high earners’ and make them money. What about all the cleaners support staff that have work hard but get no thanks or mention if the bank collapse Most of them are on meagre amounts and will not get any help after all the dust has settled .
So in concussion I do not feel sorry for the high flyers. But shed a thought for the others that don’t get mentioned
- Steve L, london
Investment bankers got paid a huge wack but most of them paid 40% of it into Government coffers and the institutions themselves paid huge sums in tax. The treasury has lost billions in tax revenues from this fall out. Maybe we should now look to the Government itself to spend our hard-earned cash with less profligacy! I am not an investment banker (I am a mere secretary!) and I don't condone the bad investment banking practices - most of which have emanated from the US - but you can't accuse individual bankers as they have paid their dues!
- Christo, London
ha ha it looks like their all nicking the company laptops aswell! if not it seems strange that all the personal laptop bags in the pictures are exactly the same! no wonder they cant keep the bank afloat
- Nick Bacon, london UK
As the wife of a now ex-employee from IT it makes me sad to think how selfish people have become. Yes my husband earned a reasonably good wage (not a fortune like everyone seems to think everyone associated with a bank does). For that wage he worked long and hard hours. Last week he went to work thinking it was going to get tough for a while - this week we're wondering how we are going to pay our mortgage and feed our three small children. We don't live a lavish lifestyle and the little savings we have like everyone else will not last beyond a couple a months. So to all the people saying tough luck to the rich bankers - I would happily change places with you. Perhaps then you will stop judging others so harshly.
- Liz, London
I'm sorry for all the people who have lost jobs-been made redundant once myself so know the feeling-but have to say that anyone who works for an American company has to be prepared to be treated like dirt-that is how they operate-like it or lump it. Unfortunately we seem to have caught the disease in the UK also. Had the Bank been French or German I'm sure all the employees would receive civilized redundancy treatment rather than be pushed out of the door not even knowing if this month's pay-check will be forthcoming-disgusting, but a sign of the times in this UK-offshore state of the US-new world order.
- Jon Kent, Hertford. UK
I felt sadness on hearing of Lehman's demise. I worked there for 7 years before leaving. On the whole they were a good company to work for and seemed to genuinely care about the well-being of their employees. It's a shame that a few people with titles had their own agenda and made working life unnecessarily stressful with their constant nitpicking.
- Tammi, London
I feel sorry for the majority of staff who got paid low salaries for long hard hours but the rest are greedy traders & bankers who caused the self destruct button to be hit by pushing financial markets higher and higher when the fundamentals did not support it. Until this cycle of greed & corruption stops this sorry tale will be repeated. Sadly the only way it will stop is by more Investment Banks going bust.
The Lehman Front Office operation was run by some very aggressive & unpleasant characters so at least they got what they deserved.
- Paul, London, UK
What's the fuss? So a handful of city slickers are temporarily out of business? At least this will reduce their carbon footprint.
Take heart from the old musical line:
"There's no business like no business
Like, no business, I know.
Everything about is congealing...
Revealing...
The debts I owe...."
Try being really poor? Like OAP's and or destitute. 1920's here we come! Again and again and again. Hooray!
- Eddie Keogh, Londinium Grande Bretagne
A lot of new names today,I notice quite a few of Lehmans high rollers trying to get sympathy on the backs of their lesser paid workmates like cleaners.Where were you when the cleaners were being paid the minimum wage? did you take their concerns up with the management? more likely you were part of the management.Give it a rest. Of course most of us feel for the cleaners but the real scandal is that someone would be paid a one million dollar bonus for being part of the group that got us in this mess in the first place.
- James Hennessy, london england
Well as these people are presumably Tories they will have put away enough money in the good times to get them through the bad times as Boy George Osborne is always parroting. As they are brilliant and talented individuals they can always get jobs teaching in London Schools and see at first hand what a real day's work is like.
- Norman Lament, Hammersmith
I myself was an employee at Lehman and was unfortunately made redundant a few months back. I am disappointed that anyone could be so ignorant as A.Sichilongo. The people at Lehman are good, friendly, considerate and extremely hard working. Many earn an average London wage and very little in bonuses. Lehman was also very careful about its deals and expenditure. Many of my friends will be out of work through absolutely no fault of their own, just another result of the current global credit crunch. I wish everyone at Lehman every success.
- H, Kent
We,Kent,UK
Misconceptions are normally from ignorant people that do not understand what actually goes on. In regards to working two business's and earning a fortune - well I can see why, you obviously have no idea of basic economics. High earners are what keep this crap country going. We pay higher tax rates than anyone else and we are not stuffing all the cash under the matress..you can rest assusred that services, retail, etc will suffer badly because of this. In regards to the "myth" of $1m dollar bonus's, as stressed by many of the people below not everyone that works in banking gets one - for everyone that does you can rest assured that there are 1000's of people lower in the chain of command that recieve only $10K bonuses.
Anyway enough tittle tattle with the "be-grudgers". I think the focus should be on all those people with families, mortgages, etc. It's tough out there at the moment finding a job and I wish them all the luck in doing so.....
- Stephen, London
Can't beleive this is happening. Feel sorry for those who came into work today just to find out that their services are no longer required.
I don't think the Government are going to suffer too much, I am sure they will find another way to accumulate the money… they could dip into the money the estimated £437 million they going to take when people have to renew their driving licences!
- Selina, Wandworth, Surrey
"If half the country worked as hard as the majority of city workers (and no we don't all drive Bentleys and swig champagne) then they wouldn't have outsourced most of our industry abroad" - Big Andy
LOL... Yeah that's right because it had nothing to do with global prices for coal (miners), or cheap Japanese imports and lack of funding in the manufacturing sector did it? Maybe it all went abroad because the investors wanted to rake off more in dividends and there wasn't enough for re-investing into the company?
I'm afraid, it wasn't economical to continue with the company, so that puts you and the miners and manufactirung industry on a pretty level playing field for jobs.
I'm sorry you are out of work but if you live by the sword you die by it. You can't complain really, you've had a good run and if anyone should have seen this coming it should be you lot.
The pubs in Essex will be a bit quieter this weekend that's for sure.
- Vintagebasketcase, London, UK
Ian (Covent Garden)...thank you for speaking true sense on today's unfortunate but self-inflicted developments. Let me make myself clear - I have the utmost sympathy for the junior employees, secretaries, clerks that worked tirelessly, Im sure, for Lehman Brothers, et al...but I cannot feel sympathy for corporate entities that made reckless decisions without giving them proper due consideration and, whilst doing so, made and rewarded themselves obscene and large amounts of money! The only losers here are the average earning taxpaying man and woman. The Bank of England's had to pump £5 Billion today into the economy to shore up the slump in market confidence...where is this money going to come from? The government's in the red already shoring up Northern Rock with, yet again, taxpayer's money - the bulk of which does NOT come from the City workers but from the average earning tax paying man and woman! Also - the majority of those employed by Lehman Brothers were aware of the company's erosion and demise as early as January this year and, in my estimation, foresaw what was ahead...unlike the employees of the XL Airline that had no notice whatsoever!
- Ali Sichilongo, London
The problem with these people is that they earn huge salaries and bonuses but each year find new ways to avoid paying income tax. It was bonuses in fine wines one year and when that loophole closed they moved on to another one. They've been doing the same for years on the basis that there is no such thing as society and selfishness is the creed of Thatcherism.
- Graham Gradidge, Hammersmith
I sat here thinking what next?
I am not working in the financial sector but it is still touching to find out you are out of the job when you turned up after a great weekend.
I feel for the guys especially the guys who are not earning what we outside think all people in banks earn.
It is the tragedy of modern times which has been spoken of way back but no one was listening.
- Anthony, Sleaford
"Average Earner" is a red herring. Real earnings would be more appropriate.
Out of 10 people 8 earn 8,000 and 2 earn 80,000 - what is the average and a completely unrealistic method for gauging real life costs.
No sympathy, the Banks screw us either way. If we are not pumping our money into prop them up, then they are over charging us or taking three days "transferring" our money via some banking black hole account, etc.
Normally we lose, about time they did. Welcome to the real world.
- Frank, Home Counties, England.
Never nice for anyone, no matter how much they are paid ... I agree with DC, the amount of taxes these highly paid workers contribute to the state ... its just a domino effect ... the government need to do something to at least ease the situation to avoid other companies going out of business over night!
- Amy, London
Very few of the gents in your and others' photos are wearing ties. Bankers? 'nuff said!
- Steve, Tunbridge Wells
'A trader, who would not give his name, said: "I would have made one million dollars this year so I don't give a stuff about a month's wages.'
I had some sympathy before I read this. Tough mate!
- Mgrelton, London
Congratulations Ali Sichilongo, London on your ignorant shortsighted attitude. Im sure all the cleaners, catering staff, PA's, secretaries, HR, IT programmers and the 1,000 processing staff in High Wycombe are pleased to accept your sucinct interpretation of them all as wealthy bankers.
You are not a lesser mortal - you are just an idiot!
- Paul, London
Seems that mismanagement is endemic in the banking sector at present, one can only feel for the employees who work hard and expect a reasonable salary, though it has to be said that some of these traders are overpaid, as are many of the top tier of the management of these banks.
I am glad I did not take my mother's advice and join a bank as a living, owniong a business is far more profitable.
- Michael, Moscow, Russia
Big Andy & Stephen - whilst I have nothing but sympathy for the thousands left without a job, please rest assured that you are not the only people working long hours. 14 hour days? I should be so lucky! I run two businesses and don't earn a fortune.Perhaps if you weren't quite so condescending towards other professions and workers, people wouldn't have 'misconceptions' about your jobs and lifestyles.
- We, Kent, UK
A system that has only one product - inflation - is nothing to feel any regret about. The city workers must be aware of this and I can have no sympathy whatsoever for them. It is true they work very hard but there is nothing to stop them working as hard for a company which produces something useful, nothing that is except the ridiculously disproportionate rewards. Gamblers sometimes come away from the table having lost their shirt. You don't feel sorry for punters in Vegas, do you?
- Adam, Stoke Newington, London
So then Ali Sichilongo I take it then the based on your theory that everyone at Lehmans is too blame, then the guys in Titanic's engine room were equally at fault for hitting the iceberg.
Bringing in the argument about Nurses and cleaners is utterly ridiculous and what you underlying suggest is that Communism, which we all know worked a treat!
Also, it's not their house of cards, it's everyones.
- Big Andy, London
Stephen
There are many many people who "start work at 7 and finish late in the evening" and get paid a pittance. Including the cleaners in the City getting minimum wage or less who "London Citizens" were campaigning for a living wage of around £7 an hour last year for cleaning the offices of places like Lehman Brothers. Were these "angry" workers who have lost their £1 million bonuses supporting their campaign for a living wage from City banks?
I have no sympathy for those on big salaries who profit from such a system and then get laid off when the inevitable result of irresponsible gambling occurs. But it is sad for those who can least afford it. And for bloke who complained the CEO had lost "£1 billion of his wealth"... I can see the whole world crying for that poor soul. He'll probably find another billion down the back of his sofa though eh?
- Saunaing Tic Gill, London
It's shocking that Ali and others have no understanding of basic economics. It's A case of demand and supply - banks employ about 2000 people if it is average sized - of that only a few 100 are traders. The rest Credit stAff, cleaners,legal, secretaries etc. So you see 100 so called fat cats are responsible for the lives of 1500. These 2000 people then buy cars, houses, clothes etc that the rest of you supply. Take away the demand and the rest of the country suffers. But then you wouldn't understand would you.
- Pt, london
Everyone sneering at the "fat cats" losing their jobs overlooks the facts that (1) lots of more modestly-paid people at the bank will also be made redundant and (2) the country will not only lose an enormous amount of income tax, but also a lot of what the "fat cats" (and others) spend on goods and services. 5,000 fewer jobs at Canary Wharf could be seen as 5,000 fewer lunches every day and 10,000 fewer coffees, for a start. You may be happy to see the bankers starve, but what about the people who provide these goods and services? Will you cheer when small shops start to close and services are scaled down in the area and all THOSE people lose their jobs too?
- Freya, London
I find Ali's comment unsavoury. If he had worked his life and health away as have many people who have just lost their jobs _and_ their savings then he would not be so jubilant.
I do have an axe to grind given that the firm sent my job to India a few years ago and am no fan of the firm, but I do feel sorry for the small cogs in the machine that made this firm work.
- Mark, London UK
I have no sympathy with any people connected with this busted flush. Hopefully they will have savings and also earning their huge bonuses and second mortgages.
Tough
- Alastair Adams, Worcester Park, Surrey
The vast majority of City workers that have lost their jobs today ( and over the past year) did not get mega bonuses. The average bonus is less than £10,000 and is taxed at 40%. Not all the people made redundant are high powered traders. £6,000 won't last long with a family to support. The biggest loser is the taxpayer as we all lose the money that the Government was counting on to pay for our hospitals and schools.
- Joe, London
Dc, don't pull the old tax line. These people pay fortunes to clever lawyers & accountants precisely so that they don't have to pay the sort of taxes that we do. In fact, many of the top earners pay a lower rate of tax than the people who clean their offices. I take no delight in seeing anybody getting the sack, but those who profit so handsomely from market forces can't also expect to be protected from them.
- Iain, Covent Garden
Some of these comments show a complete lack of undertsanding about financial markets. No, someone's losses do not always mean someone else has gained from this, it is betting on share values and if these fall, the money goes but not into someone else's pocket. It's like buying a house. Sometimes the values fall. No one gains from that either.
Also it is distressing that so many people have lost their jobs, and not all of them are high flying billionaires, but secretaries, and analysts and clerks, and many others, whose businesses rely on those in the banking community buying snacks and dinners, staying the night in hotels and taking taxis or airplanes, are alo going to feel this, as will the private schools and nurseries they send their kids to.
Everyone, sooner or later will lose something from it, directly or indirectly. So don't gloat over the misfortunes of people. Most of them are all just trying to make it through in a tough world.
- Stephen Rothbart, Prague, Czech Republic
What a sorry bunch of bankers!
- John, London
To those rubbing their hands with glee at the comedown of the high earners, you may want to spare a thought for the staff at these investment banks who are not high earners. The support staff, secretaries, word processors, mailroom staff, mostly earning under 25k, who have got rent or mortgages to pay, kids to feed. And one of them could be your brother, sister, best mate.
Furthermore, it means high-flyers will NOT be spending money in bars, cafes, restaurants, clothes shops. They will NOT be paying for renovations on their properties. The companies will NOT be needing new office premises or new buildings. Which means MORE looming job cuts for waiters, shop assistants, builders, apprentices, kitchen staff etc.. Think before you cheer about all this. We are all affected.
- Dave, N10
I am one of the 5000 that got made redudant this morning, there is no sign of any payment, I have a 600K morgage to payoff and three kids that go to private school, as well as a child that is disabled and a wife that is undergoing cancer treatment, tell me now that I deserved it!
- Raminder Bhalla, Northolt
4,000 less workers in Canary Wharf can only translate to less crowded trains and buses. That's a good thing for those who still have a job.
- Ed, London
Stephen
....Harrison isn't it! 14 hour days! Great life, working so hard and so long for a corrupt system that relies on you ostensibly generating wealth for clients that are simply having fun proving their own arrogance and self-importance to themselves....if you hadn't been so useless at it, you should have stayed in Science!
- Boomboom, London UK
I, for one, do not have a single ounce of sympathy for those that have profited handsomely for the last few years or so at institutions like Lehman Brothers or Merrill Lynch! I am not embittered that such individuals have more money than myself,...this whole mess is a direct result of the risks that these institutions and their individuals took (unfettered in part by the FSA). Add to that, the arrogance and greed of rewarding themselves with gross and amorally disproportionate bonuses and what you have is a recipe for global greed and disaster! I would also like to add that Mr DC of London typifies the very attitudes of these institutions who seem to think that the hours the "city boys and girls" put in is some way greater or nobler than the hours nurses, cleaners, carers or the police and the rest of us lesser mortals do. Well,...boo hoo!,...no more bonuses!...no more work!,...Their house of cards is falling down and they all have no one else to blame but their own culture of corporate greed and unfettered risk taking!
- Ali Sichilongo, London
Surely you can not have losers without winners? If the banks have lost all this money someone somewhere must have gained. The Duke of Westminster may now find a buyer for his boat.
- Patrick Griffin, Dalston, London
Rod/Red & Richard
I don't work in the City (I sell photocopiers which puts me probably just below 2nd hand car salesmen in this pondlife!), I just marvel at the petty minded morons who comment on goings on in the City and delight in other people's misfortune. As Big Andy said,it is typical of the small minded nature of folk in the UK that we see these comments. The billions of taxes paid by staff each year in the City go a long way to providing for the Average Earners' families health, education and social security costs right across the UK- so to wish ill on the people in the engine room of the UK economy is foolish and petty. It's not about greed. As for pensioners freezing this winter, last time I looked there were no oil wells in the Square Mile, if you need answers as to why there's no significant assistance for the poor this winter, have a word with your local Labour MP and ask what his party have done with the huge tax revenues they have taken and squandered on bloated government, inneficiency and waste over the past 10 years, rather than saving for a rainy day such as we are having now.
- Dc, London
I agree with Big Andy that we shouldn't wish ill on anybody, but
the traditional claim that the City does the rest of the UK a great favour now looks very hollow. Of course the big financial institutions create much of our GDP, but ultimately GDP is just a number (not even an observed statistic, but an estimated one), and the events of the last week make clear just how far numbers can be from reflecting reality. The city does not make anything much, or provide much in the way of genuine services that improve the lives of real people. I don't dispute that city employees work extremely hard, but when all is said and done, they push paper (or electronic data) around, and plain common sense says that the benefit of this to the wider world is limited.
- Mark, Manchester
This is really bad. Every time loads of high paying jobs go, the government loses huge amounts in income tax payments. This will mean that there won't be enough money to pay for things like the identity card scheme, more equal opportunity officers, council houses for immigrants and so on.
- Derek, London
I agree city workers are among the hardest workers in the country. The problem seems to be the majority of 'talented' individuals have a lemming mentality and don't ask enough questions. I know people who have been selling CDOs for years and will hold on to their jobs. That is what really is annoying.
- Alex C, London
The fact that Dick Fud has lost $1bn of his own fortune is neither here nor there. That was his own risk and his own fault for losing it. This entire shambles is the fault men like him who have exploited the lower end of the housing market for far too long. They all made hay while the sun shone and now it's come back to bite everyone. I doubt any of us will see Dick on the social anytime soon.
- Lewis, London
"Average Earner" - the reason we earn such high wages is because on average we work 14 hour days, starting at 7am and finishing late in evening - please dont prattle on about something you obviously know nothing about!!!!
- Stephen, London
Dc London, Oh how are hearts bleed for Dick Fuld having lost close to a billion pounds, I wonder what his and your feelings are about the pensioners who will die from hypothermia this coming winter, who are too poor to heat their homes, I also wonder what this fat cats standard of living was like before he lost this loose change, poor chap, he will now have to scrape by on his other millions. This is capitalism at it's best.
- Richard Stere Mason, Bagshot Surrey.
Average Earner - Average Worker.
If half the country worked as hard as the majority of city workers (and no we don't all drive Bentleys and swig champagne) then they wouldn't have outsourced most of our industry abroad. The square mile in London creates 45% of this country's GDP, so to wish ill in a petty minded fashion is an afront skilled workers but not untypical of the small minded nature of our once great country.
- Big Andy, London
Dear Dc, no I am not a socialist. I just CARE for others and feel that the top should have taken less risks with others' employment/livelihood. The risks were too big from the beginning and now it has crashed, it is the poorest who suffer as per. The high earners who lose their jobs will have already invested their wealth, with all the bells and whistles attached. I am not happy with anyone losing their hard earned cash, just that to some, the cash means more (or survival). Is that bad? Are you a top earner not benefiting now? Tough luck!
- Rod, Epping, UK
I am only sorry for the old colleagues I left behind when I was fired! They do bloody deserve it for being such a slavers. I worked for them 24/7 for almost 3 years, and got ill from the stress they gave me, and on the top of it i got the sack! And still waiting after 7 years to get my 500$ bonds in the company as a redundancy package.. how generous of them!
Am really glad to see they are finally going.. there is justice after all!
- Maria, London, Raynes Park, UK
Serious questions have to be asked about the calibre of senior management at Lehman Bros. To have allowed such a large bank to become dangerously exposed to such risky business is appalling. I think that the board of directors and management should hang their heads in shame.
- Simon, London W5
Rod...I presume your name was a typo..and should have been 'Red'...that bitter nonsense you spout is better suited to a Socialist Worker rant on the street corner. It's bad news for all the Lehman staff but the 'fat cat' Dick Fuld also lost close to 1 billion of his own wealth in this disaster. But everyone involved still has their health and the hard working and talented amongst them will find work elsewhere (eventually)...so let them reflect and count their blessings..the best things in life are free.
- Dc, London
Well, I know this is serious & impacts on all of us..but it's hard to feel sympathy for these high-earners. Perhaps they can taste a little reality & try living on average wages of £20-25 pa, as do the rest of us. Maybe property prices will fall to a realistic level too.
- Average Earner, Essex
Well the greed has caught up with the "fat cats" and the hard workers who really run the place are now to suffer. The people at the top should be brought to book for causing this misery. Again I say it is the greed and push for more and more profit that has made this organisation unstable. Typical, but disgusting. I am hoping the workers who are struggling as it is, find other employment.
- Rod, Epping, UK
