taylor: let's take a look at how equities have performed on the day. a hint of defensiveness with big tech. some of the technology stocks the big l performers peered up 1.2%. it all comes back to how we are thinking about a federal reserve. we did the real yield show earlier. we wrap up 2021 and push forward to next european that was the market wrap for today. what did you miss starts right now.

caroline: today, we are focused in on the financial sector. omicron, the variant causing a day lose of -- a delugue. it has been a year where firms fared quite well despite all of this turmoil, all of this personal pain that was felt. the bankers did pretty well. they have been left feeling pretty guilty about that bonus is being awarded well wealth and equality and health inequality is front of mind for many. sonali: you have bankers, some of them who have the best bonuses they have ever seen. disparity among banks with some about to do 40, 50% higher. others 20, 30%. as wall street rakes records, brings and a prophet like they

have never seen before, there is still such a disparity between what the lowest paid inside these banks and the highest paid still make these days. taylor: even though this was the year of the goldman sachs analysts or the 13 of them. feel like they are paid pretty well but it was the mental perspective of things that has folded into this year. let's get more perspective and bring in our bloomberg news reporter covering all things financial sector. talk to us about what we know about bonuses and what we can expect. >> jp morgan and goldman sachs are going to be paying the most. goldman is set to pay around 50% more jp morgan, 40%. out of that is because they are the two top banks when it comes to investment banking. more than 5 trillion of record m&a, they were part of 20% of it. deutsche bank and barclays also going to have big bonuses but not quite as much peered 20% up

at deutsche bank peered 25% expected at barclays. when you look at the trading desk, last year was a year where we saw incredible volatility. traders made a lot of money for their banks. this year, it was m&a and investment banking that drove profits we are expecting some of them are going to see us is down from what they were last year. taylor: in addition to covering investment closely, you have covered jp morgan for a while. the average worker at jp morgan, the median pay is $80,000. meanwhile, the president has a $20 million bonus over a span of three years. how does that play into next year where we have seen these concerns about disparity before, is that brewing? >> is a great question and something the banks are dealing with on the banking side is last

year there was a record year for trading. they did not compensate the traders as well as traders thought they should have the whole economy is dealing with a great resignation. now the banks have understood if they want to keep this talent after bankers have been killing themselves for whatever come 18 months straight, they do need to pay up. there is a recognition. the banks have said compensation because next year are going to probably increase. they are going to start paying some more. i don't how long that is going to translate to the average hourly worker. at this point in time because of the war for talent, they're going to be increasing pay. caroline: as the fund there in terms of people looking at the crypto industry being on the cutting edge of what seems to be new and exciting. how do they make up for that? >> my colleague wrote an amazing story today about this existential angst that has been coming along with getting paid all of this money now.

bankers are minting money. it is the busiest they have ever been but there's this acknowledgment that other people are making more than me. it is some of this greed. there is also some skepticism. some of these people could go into crypto if they won two or private equity were made the profits are higher. there is a recognition that banking is not what it was 10 years ago because it has become so regulated after the financial crisis. caroline: always putting it into perspective for us. we're going to be speaking to max able to and on his great peace. we're going to be talking about a cultural change. recently, you released a piece on berger pinion on the wall street i once knew no longer exasperated came from your own experience on the trading floor from 1999 before the financial

crisis. behavior was different. people were not very nice. now you get a wrap on the knuckles, you cannot raise your voice and it the way you used to. >> if you going to trading floor today, people are whispering. it is like a wax museum. it is really quiet. i watched the movie pursuit of happiness recently with will's mix and he walks onto the trading floor and people are yelling and throwing papers. i said yes, that is what it was like when i worked at lehman in the 2000. it was just like that. taylor: how much of that is irresponsible and the type of risk trading we learned in the 2008 financial crisis does have consequences to it? >> the market is very different than it was back then. back then, what you had on a bank trading floor was risk transfer in blocks particularly in equities. it was common for a hedge fund or mutual fund to sell half a

million shares come a million shares of the stock as a block and transfer risk instantaneously. that type of risk transfer does not really happen anymore. it is fragmented. it is done over time. it is the risk transfer that increases tension and yelling on the trading floor and that does not really exist anymore. sonali: i'm wondering at the end of the day how much the money really matters here as these firms build cultures. i got in a quest -- i got a question yesterday from an investment banker asking, for apollo partners, what does an extra 20 $50,000 a year -- what does that do for them? >> on wall street, money is a marker of -- it is how we keep score. if you made $800,000 last year and you may none hundred thousand dollars this year, you can say i did incrementally better. if the guy sitting next to you

makes $600,000 -- it is not really about the economics of it. it is about, this is how we keep score. wall street is a very unusual place because it is really the only place in the world where you can be a worker. you can be a finance worker, a lunch pail person and make multiple six figures. caroline:caroline: i'm trying to get your sense on whether you are sad about the fact there is less shrieking and shouting an impulse on the trading floor or whether you think it is the right direction of travel. >> i think in some respects, reducing the amount of stress that people have on the trading floor is a good thing. i left the business in 2008 mostly because i was burned out. the job i had at the time trading etf's was one of the highest pressure jobs you could possibly have and in september of 2008, every cell in my body wanted to quit paired i could not take it anymore.

reducing stress and offering resources to deal with mental health issues and stuff like that is absolutely a good thing but i do miss the risk transfer of wall street. taylor: does the higher pay as we talk about the 13 goldman analysts, does that compensate for the stress? is that enough? >> it does, but the problem is it makes it very difficult to walk away. it is difficult to walk away from that kind of money. i did and i did not regret it. it took me a long time to get back to that level of pay but for somebody making that kind of income, to quit and say i'm going to try something else becomes a really big risk and they stay even though they may be unhappy. sonali: i have a huge bone to pick with you. you wrote a scathing article three months ago basically calling the cfa program a sham. i emailed you livid and then you

told me the cfa was a noun and it was an adjective. you want to comment? >> our member the email but he did not seem livid in the mail. he seemed very measured. i did not get the livid nest in the email. i don't apologize for the article. i do think it is a waste of time to taylor: ok. one of these days you're going to come on the program and we will duke it out. >> put up your dukes. caroline: bloomberg opinion columnist jared dillan. thank you for bringing your viewpoints and experiences. we look forward to the fight. going to continue. and well, so pleased we will be bringing you more of this. sometimes mixed feelings about the record run. talking about inequality across the economy, we are going to shift the tone on wall street are the cofounder of known holding is with us.

this is bloomberg. ♪

taylor: today we are focused on the last year in wall street. on many are booking in more money than ever, the pandemic has left some with a new view on these massive profits. caroline: it is going to get awkward for many. got to dine any outdoor restaurants. play golf. others who worked with kids in tiny apartments with paycheck-to-paycheck and lost their job should taylor: i was

there when he made that comment the other day at a charity dinner and really feeling the weight of the 1% right now. the reality they have made so much money one so many have not. the mood is looming large. taylor: i think we will do this in our final lots later but what jared said was the money does not compensate for the mental health but it makes it harder to walk away and then you are in the cycle. all of this has become a big focus as we talk about the existential angst being felt by some on wall street. that is the focus of today's big take. let's bring in the reporter behind the story. max, you always do incredible stories for us. talk to us about how your reporting came about good the concrete -- came about the conversations you are having and the angst behind the individual. >> so happy you say that about my reporting. i was in a meeting with my colleagues. we were talking about how this

year has been so uproariously profitable for the biggest banks. if you thought that the goldplated 1980's were good for banking or the clintonian 1990's or precrisis before 2008, if those seemed like the errors, it was nothing compared this. thanks our crushing profit records. a lot of bankers can expect to make a lot of money compared however jim american's are doing. the mood has been great. it has been grim on wall street. we are not getting the back patting we are expecting. the story tries to put our finger on why that is in rather than me saying so, we spoke to interesting finance veteran and asked them to explain the mood and that is with the story is. i hope people watching read it. sonali: derrida brought up an interesting point. how much worth they place on the paycheck and i -- and i am

wondering if you have spoken to people about that before. trying to find value outside of the money aspect of this job. taylor: if money is all you are after and i'm sure there is some percentage of people in america and some percentage of people in wall street that that is what they want to do, they just want to make money, i think on wall street in 2021, you may find yourself a little disappointed. that is not because you are not making a lot of money. by any measure, bankers are bringing home a lot of money these days but they look to their left or to the right and they see 18-year-olds making $20 million from cryptocurrency. mark told me he has to work hard to not be advanced should he has to have self-control to remember in some ways it is ridiculous to think the grass is always greener. that does not fully explain everything but i think that

sense that maybe things are more fun elsewhere or more lucrative elsewhere, that partially explains the mood. caroline: the fact it is not called to flaunt your cash in the way you have gone back to the bygone era of the 80's and the 90's. he loved people pulling up in bloomberg guinea or getting out and being flamboyant that is not the way in which anyone should be deeming at the right way to exist. inequality is so painfully clear to everyone and it is shameful in many ways. >> that reminds me of something a former goldman partner said in the story. he said, there is an extent to which you are not seeing celebration on wall street, it could be because bankers are savvy enough to realize it is not a good look at the end of the two-year period of immense pain, immense illness, immense death. it is not a good look to be flaunting and celebrating.

i think that could factor into it. i also want to mention something else. i think it was george walker who said people on wall street are exhausted. i think people are really burned out. between nv and a feeling there is not fun and feelings of inequality, it adds up to a lack of glee on wall street to quote one of my subjects. caroline: you have such a way with words. both in the flesh and on paper. we thank you. let's continue this conversation. one of the great experts you spoke to. valerie, the cofounder of known holdings. it is always an honor to speak to you. you put it so well. we have lacked a sense of communication and sustainability on wall street. are they getting that given that some are not willing to be soap

flamboyant? they understand inequality is so grave in the u.s. >> it is always a pleasure. i would say that i think what we are feeling here -- what they are feeling is a change that has been coming for a long time. it is not just 2021 bonuses. the system of wall street has been biased and there has been an acquittal distribution of capital. unlike your last guest who left the industry, i decided to stay but to make change and a field that my role is to make that change. that change is coming. it is inevitable. a lot of the bankers and the professionals you mentioned know that things are not going to stay the same. it is on was like technology becoming obsolete. the systems at play will be financial -- will be obsolete. sonali: on the margin, wall street has embraced more women, more people of color, give more money to their foundations and

smaller communities but that has all still lagged in a big way. i'm wondering, what is the opportunity going forward? >> philanthropic capital is fantastic and i work for a philanthropic organization that will not make the change we are talking about. when you consider 70% of the worlds population -- population identifies people of color -- he talked about the 5 trillion that when out in investment banking capital, it is all connected. the wealth management and what companies get funded. it is resorting to the same subset of ownership and c-suite level. the changes you mentioned are important but they are not changing ownership, the wealth gap, c-suite level and generational wealth. and what we are going to see is a change in systems, equitable distribution that will be a major shift. taylor: some of the chefs are little bit underway.

we have seen some of these big banks make promises to underserved communities. investing in black businesses, minority women businesses. is that the realistic change you would like to see even if it is just the start? >> yes and no. similar to the tech industry, the change is going to come from the customer base, not the owners of the bank. we are going to experience the greatest shift in capital and wealth as baby boomers turn over control of assets and family wealth to the next generation. in the younger generation cares about environment, sustainable investing, racial equity and transparency is important. systems have to change. it will be driven by the customer and the banks will have to respond or they will become obsolete. the shift is much more than a big banks saying we are going to do a program over here that

invest in some black companies. i don't want to demean that effort but it is not enough. we are going to see a huge shift to where we can shift capital and ownership and generational wealth. >> remind us how you are trying to accelerate some of that change yourself. >> focusing on distribution of capital to divers managers, divers founders. we are going to create new technology that redefines risk. if you look at how risk -- risk his defined in a way that defaults to the same managers of capital and leaves out access to managers who are diverse. that is a shift that needs to happen. taylor: appreciate your time. cfo of east bay committee foundation and cofounder of known holdings. i know we have a lot to dissect. stick with us. final thoughts is next. this is bloomberg. ♪

caroline: angst on wall street. that is what we have been discussing this last half-hour. it feels as though even if they can't square the huge bonuses they're going to get with the year of inequality we have seen, people are going to vote with their feet when it comes to putting money to work. sonali: the reality is wall street's call to restraint -- culture change has a lot of friction behind it taylor: to their credit, they worked incredibly hard. this is one of the busiest years we know. the quote in the story may be left when they said they are feeling bad but i think they will feel a lot better in january or february. take that for what it is worth. sonali: this might be as good as it gets but next year is going to be a tougher one than this one. caroline: less volatility potentially. we'll have to see how they manage to continue to buffer the

issues of slightly smaller bonuses. that does it for what did you mess up we want to wish you all a happy and healthy evening. stick with us. this is bloomberg. taylor: -- this is bloomberg. ♪

>> from the heart of where innovation, money and power collide, in some of -- in silicon valley and beyond, as is bloomberg technology with emily chang. carolyn: welcome to bloomberg technology. carolyn hyde. i have absolutely no script some going to bed living as we move toward some of our key technology headlines. i'm looking at