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Late Lunchtime Links: The sorry truth about the state of the investment banking industry

Profits down

First quarter results from investment banks weren’t too bad. Sure, some banks experienced some substantial revenue reductions in fixed income currencies and commodities and equities revenues were too hot, but capital markets revenues were quite robust and M&A advisory revenues were up. In the circumstances, the horrors of 2008 seem a distant memory.

However, a new special report by the Economist underscores just how much things have changed. In the years since 2008, the Economist says investment banking revenues globally have fallen by $100bn, or at least a third. Employment is lower. Pay is lower and European banks are struggling. “The stellar returns earned by banks before the crisis and the massive rewards paid to their employees are unlikely to recur soon,” says the author. “If at all.”

Most people in banking know this already, but it’s good to be reminded just before a weekend.

Meanwhile:

Florence Fontain: Regulatory guru at BNP Paribas. “I’m not a lawyer, I’m not a compliance officer. I’m coming from the business and from the strategy aspect. I’ve been a consultant.” (Financial Times) 

Brevan Howard has hired Peter Blandford, a gilts trader from Jefferies. (Financial News)

Anatoly Nakum, former co-head of credit trading at UBS in the Americas, has joined a hedge fund. (Bloomberg) 

Hedge fund manager Philip Falcone is being banned from the industry for two years. (TalkingBizNews) 

Nomura has appointed Alan Macdonald, formerly of UBS, as head of equity research. (IFRE) 

Former investment banker and his wife set up 105 mile amateur cycle race. (Bloomberg) 

The socio-political cycle of banking crises. (VoxEU)

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