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Morning Coffee: Three investment bankers earn $19.9m for two weeks’ work. The Brexit-proof bank  

Investment bank

Boutique investment banks aren’t just getting in on the big advisory deals, they’re doing it with tiny teams of very senior, well-connected people and securing some enormous pay days.

Around £200m ($266.5m) in fees was paid out to investment banks, law firms and PR firms for advice on the £24.3bn purchase of UK microprocessor designer ARM by Japanese tech giant Softbank yesterday.

Among the three banks advising Softbank, which collectively received £45.2m ($60m), was Robey Warshaw. Average payments were therefore £15m ($19.9m) – of course, it’s a big assumption that all the banks received the same amount. But, around 20 staff at the bank advised on the deal, suggests the FT, and just three partners will be the main beneficiaries of the fees.

Even better, this the whole thing took around a fortnight.

Separately, how can you be Brexit-proof as an investment bank in London? Well, if SocGen is anything to go by, just don’t base many staff there or become too reliant on the UK for revenues.

The chart below shows how SocGen’s London headcount compares to that of its investment banking peers. It says it has a lower proportion of investment banking employees in London than any of its peers, at around 10%. Morgan Stanley and Goldman Sachs have among the highest numbers employed in London, it suggests, but one European bank – presumably Deutsche Bank, which has around 7,000 people in the City – leads the way.

Screen Shot 2016-08-03 at 22.21.35

SocGen has, it says, an “up and running Paris-London dual set-up (both front office and operations)”, which suggests single market access isn’t a problem.

This echoes comments from Deutsche Bank CEO, John Cryan, that most of its London functions are carried out through its German-based subsidiary anyway.

Meanwhile:

An action plan for how the City can survive Brexit (Financial Times)

“Going out for a drink if you’re invited and of-age is a great way to get to know people, but make it one or two drinks, not 22!” Morgan Stanley’s advice to interns (Business Insider)

Point72’s $250m Quantopian investment gives it access to talent in “all four corners of the world” (Financial Times)

J.P. Morgan is harnessing HFT technology for its U.S. treasury operation by teaming up with Virtu Financial (WSJ)

Goldman Sachs has agreed to pay $36.3m after its employees used Fed supervisory information to try and pitch for new business (Bloomberg)

HFT Sun Trading has hired Jamal Tarazi to lead its UK-based trading business (Financial News)

“Big data analytics and machine learning were always going to have a huge impact on the pricing and risk management of flow market products. However, banks just didn’t have the ability to view technology as a business or, frankly, be nimble to move fast enough in this space,” the new big FX player speaks (Financial News)

It’s not London that will lose out from Brexit, it’s the financial services jobs in other UK cities (Financial News)

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