August 28th, 2012
08:01 AM GMT
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(CNN) – Another week, another round of news that suggests it’s a bad time to be a banker.

First came news Deutsche Bank became the first global bank to that could claw back payouts. Deutsche Bank's clawback rules allow it to take away from newly hired senior staff the un-vested equity bonuses earned at previous employers - if they were turned into Deutsche Bank shares. This is a significant tightening of bonus rules by Europe's largest lender, CNN’s Jim Boulden says. Pay consultants say the rule is unusual in the banking world and comes as European banks now hold employees accountable for questionable behavior.

But the question remains: Will other banks follow? And will the new rules give Deutsche Bank trouble recruiting?

Deutsche Bank isn’t the only one in the spotlight this week. Italy’s UniCredit is being investigated in the U.S.over allegations it skirtedU.S. sanctions, in another sign that scandals hitting the banking industry are not over. UniCredit admits one of its German units is being investigated by U.S. authorities for possibly breaking sanctions that prohibit doing business with “certain countries” - that likely means doing business with Iran. UniCredit joins Commerzbank, RBS and Standard Chartered as banks being investigated by various U.S. authorities for alleged business with Iran.

As a result of these scandals, there seems to be a rising social stigma about working in the banking industry amid the Libor rate-rigging scandal and recent money-laundering investigations. Some recruiters are saying some investment banks are forced to raise starting salaries to attract top graduates because of "banker bashing. According to the Daily Mail, the starting salary in London is now upwards of $79,000 – a 5% increase. One headhunting firm says graduates are now thinking of "longer studies or professional services" rather than finance.

As CNN’s Nina dos Santos points out, this wave comes a few years after Bob Diamond famously said “the era of banker bashing should be over” as the world recovered from the 2008-2009 financial crisis. But, of course, Diamond is now out of a job, having resigned in July as CEO of Barclays as a result of the bank’s role in the Libor scandal.

Should graduates reconsider a career in banking? Have your say. Leave your comments below.

soundoff (12 Responses)
  1. David

    I personally do not think this is going to be an issue in long term. The top graduates who want to make big money will still want to join the financial industry. People hesitate to join the banking biz because it is under the spotlight in the moment. After things (scandals) cool down and media starts to chase after other issues, most applications will emerge. Human beings tend to forget lessons which we should have learned.

    August 28, 2012 at 8:44 am |
  2. rightospeak

    " Should graduates reconsider a career in banking ?" is the wrong question Should crooked bankers continue stealing and not going to jail ? – is the proper question. Not holding employees accountable for questionable behavior is an outrage. Even a shoplifter can go to jail or a pickpocket. These guys pick BIG POCKETS BIG and need to go to JAIL.

    August 28, 2012 at 2:31 pm |
  3. Roland

    Life must be so tough for a bankster.

    August 28, 2012 at 6:02 pm |
  4. CatSh

    Here's the problem I see: you stand to make a lot of money in banking. But job security is no better than any other industry – and if you get fired you will find few other companies willing to hire you. Either because your pay was too high or poor opinion of banking personnel. For a long-term career, seems most any other industry would be better.

    August 29, 2012 at 2:17 am |
  5. Paul Johnston, PhD Economics

    Bankers are a joke and complete FRAUD and everyone knows now what they are: Just plain CRIMINAL & many Bankers will hang soon when the people have had enough of their deceit and arrogance– Mark my words !

    August 29, 2012 at 5:47 am |
  6. anuj

    I worked in banking for 5 years, resolving troubled assets in a risk containment capacity...

    August 29, 2012 at 12:34 pm |
  7. stanoneil

    bankers are essentially greed driven criminals that contribute nothing but destroy much... when are some of them going to jail...for example the merrill lynch criminal cartel ?

    August 31, 2012 at 4:40 pm |
  8. shubham

    its good to be a banker, now a days banker had to work in lot of pressures. for a grauate it will be a good opportunity to learn a lot while having a lots of pressure.

    August 31, 2012 at 6:47 pm |
  9. Robert Powell PhD

    What a complete FRAUD and FARCE Merkel, Hollande, the EU, ECB and Dragi are: The EU and all its criminal politicians who created this entire financial mess have gone "Scott-free" without any one of them being held accountable or found guilty of fraud, theft and incredible misdeeds!
    Nothing will change in the EU wth its corrupt politicians and Bankers and they will continue stealing EU citizen’s money, making the People the only ones responsible. Why has the EU Commission never asked Greek Politicians about the 200 billion Euros they have looted from the people and EU funds they stole and sent offshore and to Swiss banks?
    Because the Bankers & EU Commission is in on this game and absolutely corrupt… It is Pathetic... Time to tear the system down and start over... Stop voting for these horrible Criminal Politicians & jail the Bankers for financial fraud & get back citizens money!

    September 6, 2012 at 5:14 am |
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    September 16, 2012 at 7:10 pm |
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    September 24, 2012 at 6:55 am |

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Quest Means Business airs Monday to Friday, 1600 New York and 2100 London, and is hosted by Richard Quest.



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