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Late Lunchtime Links: How Jamie Dimon messed up and JPMorgan disguised investment banker pay; muted pay celebrations at Goldman

Dimon

Never again will anyone be able to call Jamie Dimon the most untouchable and highly paid man on Wall Street. Nor will they ever know precisely how much JPMorgan pays its investment bankers.

JPMorgan’s report into the massive loss in its chief investment office, published today, points an accusatory finger at several senior members of staff at JPMorgan. Ina Drew, Douglas Braunstein, Barry Zubrow, and Jamie Dimon were all implicated, says the report by the management task force. All but Jamie Dimon have since left the bank. The report suggests Dimon’s failings were multiple: he should have been less credulous with regards to what he was being told by the people who reported to him and he should have ‘done more regarding the risks, risk controls and personnel associated with CIO’s activities.’ For this, Jamie Dimon will have his pay cut by 50% (although he’ll still receive $11m).

Separately, and as of its fourth quarter 2012 results, announced today, JPMorgan has stopped breaking out pay and headcount for its investment bankers and started presenting its investment banking results along with its corporate banking results, making it impossible to distinguish between the two. Average compensation per head for JPMorgan’s investment bankers/corporate bankers was ‘just’ $217k for 2012, the same as for 2011. However, JPMorgan’s third quarter results revealed that its investment bankers were actually allocated $270k for the first nine months of 2012 alone.

Now that JPMorgan’s investment banker pay is bound up with its corporate banker pay, it’s worth noting that the bank has allocated less in the way of compensation to its 52,000 corporate and investment bankers than Goldman Sachs has to its 32,000 investment bankers and asset managers. The total compensation bill at Goldman Sachs was $13bn for 2012. At JPMorgan’s corporate and investment bank, it was just $11.3bn.

Today’s Goldman Sachs results reveal that the firm paid its average employee $400k last year, up 9% on 2011. Goldman’s bankers have reason to celebrate. However, the increase was less than they might have expected after Goldman reduced compensation by 11% year-on-year in the final quarter.

Meanwhile:

Goldman earnings massively exceeded expectations. (Business Insider) 

Revenues in JPMorgan’s investment bank (now known as ‘markets and investor services’) rose 1% in 2012. (JPMorgan) 

Revenues at Goldman Sachs were up 19% last year. (Goldman Sachs) 

Citigroup is dominated by men. Everyone reporting to Michael Corbat is male. (American Banker) 

Morgan Stanley made 20 people redundant in Australia. (WSJ)

Thomas Candillier, head of European cash equity sales at JPMorgan has died at the age of 37.(Bloomberg)

RBS banker causing upset with extravagant home plans in Hampstead. (Evening Standard)  

Bank of England says Lloyds and RBS need up to £30bn in new capital. More RBS investment bankers may lose their jobs. (Telegraph) 

Where to work if you want to work in fixed income sales and trading. (Bloomberg) 

Megan Kenney, the head of European Capital Services at Credit Suisse, has left to join a start up hedge fund. (Financial News)

The names of bankers implicated in Libor fixing at Barclays are likely to be published. (Telegraph)

BBVA is on a quiet hiring spree. (Euromoney) 

Ex-Morgan Stanley banker Simon Robey is setting up a boutique with Simon Robertson, the chairman of Rolls Royce. (Sky) 

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