The life of a junior investment banker does not have much to do with ’bottle service’ and client entertainment. It is strongly related to spreadsheets and takeaway food. Nor do junior bankers earn the sorts of sums that make early retirement easy. But they do earn a lot of money. And if they’re careful, they get to save a lot of it.
U.S. website The Billfold interviewed a 28 year old banker who got into the industry in 2005 after an internship on Wall Street. He didn’t divulge precisely what his job was, beyond saying that he worked on the ‘institutional side of an investment bank,’ in a client-facing role. He said that he usually works a couple of weekend days per month and that during his first three years in banking, he worked from 6.30am to 11pm most days.
The most interesting thing about the interview, however, is the following chart, reflecting the evolution of pay for the banker in question between 2005 and 2012. Year three was 2008 – hence the low number. Between 2009 and 2010, his salary was hiked from $100k to $200k.
Source: The Billfold
While he earned $250k gross last year, the banker in question also said that he only spent around $85k. Of that,$31k went on rent, $15k went on food, $10k went on travel, $8k went on bills, $7k went on shopping and $6.5k went on ‘unallocated cash.’ He said that he tracked his spending rigorously and monitored his earnings on a special Excel spreadsheet. “During the financial crisis—there would be senior people complaining about how they couldn’t live on a $250,000 to $400,000 base salary, and I never wanted to be in that position,” he explained.
Anshu Jain called MEP Sharon Bowles to express his concerns about the bonus cap early last year. (Reuters)
“British influence has diminished. If they don’t have the Germans behind them, Britain is toast on a lot of these issues.” (Reuters)
Wolfgang Schäuble, the German Finance Minister, called not to exclude Britain entirely in the debate on bonus caps. He was ignored. (The Times)
72 of the 112 “code staff” at Standard Chartered are outside Europe. “They are easy targets for local banks and US banks that won’t have to comply with CRD IV,” said CEO Peter Sands. (The Times)
Spain’s finance minister, Luis de Guindos, has called for bank salaries to be restricted by law too. (Telegraph)
“Bonus season used to have a discernible effect on the London property market, now it’s noticeable by its absence.” (Financial Times)
State Street has lost a head of compliance and hired a head of risk. (Financial News)
Asian hedge fund jobs now dead too. (Bloomberg)
Like Barclays, Standard Chartered is relocating its African business to Johannesburg from Dubai. (Bloomberg)
Banks are laying people off in Moscow. (Bloomberg)
How to get your first job in private banking. (BankersUmbrella)