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Morning Coffee: Deutsche Bank hikes pay for mid-ranks, Credit Suisse’s private bank largely employs ex-investment bankers

Investment bank pay rise

Deutsche Bank and Credit Suisse have joined the junior banker pay rise party

Private equity firms are circling junior investment bankers. Investment banks have responded by hiking pay for analysts and associates by up to 20%. Except, that is, Deutsche Bank and Credit Suisse. This is changing – Credit Suisse is said to have increased pay already for juniors, while Deutsche Bank is set to do so.

All of this appears necessary just to keep up with the competition – Bank of America Merrill Lynch has, for instance, given its first year analysts a £5k pay rise so starting salaries are now £50k. But Deutsche Bank is taking a different tactic – it’s giving its VPs some love.

Analysts, associates and VPs are likely to have their pay bumped up, suggests the FT. Including VPs is an important retention tool –  the career plateaus of mid-ranking bankers are leaving many stuck, unable to break through the glass ceiling to managing director, which is becoming increasingly elusive and turnover is increasing.

Separately, Institutional Investor has a wide-ranging interview with the senior ranks at Credit Suisse, which extols the virtues of its One Bank policy of cross-selling between the investment bank and wealth management business.

The investment bank will continue to be pruned, says CEO Brady Dougan – who works 15-16 hour days preceded by a long run – but Credit Suisse remains committed to it nonetheless. Where will former investment bankers go should they lose their job? Try its wealth management business.

“Even the private bank at Credit Suisse is largely headed by former investment bankers,” said Andreas Venditti, an analyst at Bank Vontobel who spent several years working at Credit Suisse.

One example is Robert Shaffir, current CEO of Americas at Credit Suisse and co-head of private banking and wealth management who worked at Lehman Brothers for 17 years. “I’ve lived on both sides of the fence and that makes me a big believer in the One Bank concept,” he says.

Meanwhile:

Clawbacks are hitting Wall Street: senior bank employees could be forced to hand back bonuses for fraud or “egregious blunders”. (Wall Street Journal)

Tom Massey, head of M&A for Europe at Citigroup, has become the latest senior banker to depart. He’s joining Evercore in a role focused on the chemicals sector. (Financial News)

Fintech firms are pooling independent equity research analysts who get rated on the accuracy of their calls and quality of their research (Financial News)

Macquarie could have had a fantastic 2014 – profits could be up by 20% on strong commodities and investment banking revenues (Bloomberg)

Jeff Blue, a former Merrill Lynch banker who left for the corporate sector to head up M&A for Sports Direct, has quit (The Times)

Surprisingly, MBAs who have “chief” in their job title are happier than those who don’t (Dealbreaker)

How to dress like Rihanna every day at work (Bloomberg)

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