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Morning Coffee: UK broker haemorrhages 25% of staff. Nefarious traders develop new method of cheating on clients

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Are you looking for a job in equity research or sales? Try Oriel Securities. The Financial Times reports that the UK stockbroking firm has suffered a wholesale exodus of its staff after 25 of its 100 people left for an independent research consultancy being set up by former Oriel chief executive David Knox. Another five people have quit Oriel for Canaccord Genuity.

The exits are said to have taken place in the ‘last few months’ and seem mostly to have impacted Oriel’s researchers, of whom Oriel admitted ‘a number have left.’ Oriel has taken some steps to fill its gaps already and has recruited new healthcare and cleantech teams. In the past few months, the broker said it’s hired 30 people, although its not clear whether these hires happened before or after the Knox-inspired exodus.

Separately, Bloomberg has unearthed new information in the ongoing saga of (FX) traders front running their clients. It says that currency traders at banks in London have been passing information about client orders to day traders (working at ‘rented trading desks in offices on the outskirts of London’) who’ve been placing trades on their behalf. The profits made as a result of these trades have allegedly been split between the parties involved.

Meanwhile:

Rosneft may buy Morgan Stanley’s oil trading unit. (Reuters) 

JP Morgan has agreed to a landmark $13bn (£8bn) settlement with the US Justice Department over the mis-selling of mortgage securities in the run-up to the US financial crisis. (Telegraph) 

KBW reckons that global investment banks have paid $44bn in litigation costs since the start of 2012. And it estimates another $100bn in settlements from civil litigation (excluding regulatory fines) over the next decade, mostly related to the Libor scandal and allegations of misconduct in the foreign exchange markets. (Financial Times) 

Bank of America shares are now back where they were when Moynihan started as CEO. (Bloomberg) 

Five years later, the executives that were in charge of Bear’s headlong dive into subprime mortgage lending hold similar jobs at the most powerful banks on Wall Street: JPMorgan, Goldman Sachs, Bank of America and Deutsche Bank. (PublicIntegrity) 

Bank of England wants clawbacks for bankers who don’t report colleagues’ wrongdoing. (Bloomberg)

How to generate $742 million in revenue—with just 12 employees. (Crains) 

The only thing you need to read about Bitcoin. (Alphaville) 

Ex-Citi chairman has opened a jazz club. (NYMag)

Where JPMorgan went wrong with its Twitter Q&A. (Bankers Umbrella)

Relative to income, pay in investment banks is now at a record low. (Twitter)

Working long hours used to be associated with low pay-per hour. This has changed. (HBR)

Sleep loss means mind loss. (Farnam Street)

 

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