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07:55 September 16th, 2008

Schadenfreude - the new City currency?

Posted by: Guy Dresser
Tags: Consumer Finance, UK News, , ,

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Is it me or is Schadenfreude on the march? In the midst of all the headlines about wealthy bankers facing the ‘new reality’ of unemployment and comment about them not being terribly worthy of sympathy on account of their vast past bonuses, it’s as well to remember that not everyone can be sanguine about being cast out of work and that every job lost is a potential human tragedy.

 When big employers like Lehman Brothers collapse and others shed vast numbers of staff, there will be numerous people who face severe difficulties. And that’s something that some of those who seem to be revelling in the bankers’ misfortune would do well to remember.

In a crisis as deep and as global as this it won’t just be a few “City slickers” who lose out.

It’s certainly a lesson a fellow customer in my local Starbucks could well heed. Admittedly I was still waiting for my morning caffeine shot to kick in and was therefore half asleep at the time, but I came to in irritation as I absorbed his tasteless and feeble jokes about the meltdown in the financial system and the collapse of Lehman Brothers.

The man, himself smartly dressed in thick City pinstripes and silk tie, seemed barely able to contain himself as he waxed lyrical about the waning fortunes of all those highly paid bankers and their erstwhile bonuses. How he laughed.

Cue a brief injection of compassionate common sense from his friend and there came a teeny little bit of sorrow for all the back office and administrative staff at Lehmans who would, he admitted, not have benefitted from the same safety cushion of bonuses as their former masters would have done.

No bonus, no Schadenfreude? That’s alright then.

4 comments so far

Any crowing over the fate of the city slickers will be short-lived as the recession starts to clobber more and more “ordinary” people. Things could get very ugly in the next few months. With soaring fuel bills, if the weather is severe this winter there’ll be a lynch-mob after the government and city bonuses won’t matter a damn to anyone.

- Posted by Matthew

Once upon a time I was in the back office of a big biscuit bank (it’s still standing) and even before they inadvertantly masterminded their little financial crisis (and got paid well for it), there was never any job security for those paid by the hour - you could ‘go’ at any moment. The meltdown will make things worse - fear does horrible things to people in the workplace - I’ve written a book on it - and now before things can get ‘better’ things will get nasty. How well ‘regulation’ keeps up (or down) is anyones’s guess and we are certainly entering a new era; but does smaller bonuses for bankers go hand in hand with smaller payouts for those who scam the system while the rest of ‘us’ sweat it out?

- Posted by Simon Drake

Shareholders have lost money, but at least they can claim the capital tax losses and move onto their next investment. It is it is the unfortunate employees who suffer the most at the end of the day. Per this review ( http://www.savingtoinvest.com/2008/09/em ployee-impacts-from-financial.html ) employees of the collapsed financial institutions are the hardest hit because not only do they rely on the company for their paycheck and livelihood, they also tend to be long term stock holders (via ESPP)

- Posted by Andy

In a crisis as deep and as global as this it won’t just be a few “City slickers” who lose out, but even if it were I would still feel very bad for them and anyone who loses his/her job.

- Posted by Lec Neli

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