This morning the Financial Times reported that UBS expects to reduce its investment banking bonus pool by one-third, as it continues to cope with mortgage-related losses. Although UBS has already shed 12% of its banking work force, the bloodletting is still not over, with 500 more layoffs expected. So, even though the pool of bankers is shrinking, the bonus pool is clearly not keeping the same pace, meaning that (surprise!) UBS bankers can expect less.
For MBA candidates this year, there is probably little about which to worry. Who knows what a 2011 graduation date will have in store? For those graduating this year, however, this is indeed an ominous sign.