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Morning Coffee: When and where to work for a US investment bank. Banking juniors should ask themselves this

US investment banks

Where US banks rule

To hear senior investment bankers at Citigroup and J.P. Morgan talking about their achievements in the Wall Street Journal, you‘d think they’d won the banking battle on every front.

James Cowles, Citi chief executive for EMEA said US investment banks were more insightful than their European rivals and are now reaping the benefits of that prescience: “The U.S. banks started doing their restructuring, they started dealing with their balance sheets and they started deciding what businesses they were going to be in earlier than the European banks,” said Cowles.

Viswas Raghavan, head of banking for EMEA at J.P. Morgan said US banks are benefiting from the strength of their home market and companies’ tendency to reduce the number of banks they deal with. – The implication being that discerning clients gravitate towards large US firms.

Both Cowles and Raghavan were commenting in relation to the new set of data from Coalition, the banking information firm. Coalition’s data shows European firms being trounced by US rivals in their home market. – US investment banks accounted for 53% of European investment banking revenues in 2014, up from 48% in 2012.

In full, however, Coalition’s tables (added below) suggest that Deutsche Bank, at least, isn’t doing too badly. The German bank is doing better than most US investment banks in Asia and is a top tier player in all but equities in Europe. Notably, however, no European bank has made much of an impression in the Americas. If you work on Wall Street, US bulge bracket banks are still the best option by far.

Top banks by region (Coalition data) 

Coalition regional table

Separately, the CFA Institute has produced a blog post that’s pertinent to anyone embarking upon a career in finance. When it comes to earning and managing money, the CFA suggests only one question is relevant: “Why is money important to you?” It then suggests a few subsidiary questions to help generate an answer: “Why do I invest so much of my money and time on X?” “Why do I spend so little on Y when I claim it’s important?” “Why do I save as much (or as little) as I do? What am I hoping to achieve?”

Meanwhile:

Google is paying Ruth Porat $70m to be CFO. But she’s only getting $7.5k in relocation fees. (Mashable) 

How asset managmenet jobs are changing: The fact that it might not be as easy to sell assets seamlessly as it was in the past “forces you to think in terms of long term positioning rather than short term,” he said. (WSJ) 

By 2015, almost 80% of the workforce at PWC will be millennials. (PWC)

Look at all the women in Hong Kong hedge funds. (The Tally)

Investment in fintech firms in Britain and Ireland swelled to $623 million last year, more than double the $264 million seen in 2013, says Accenture. (Reuters)  

Facebook personality inventory suggests British students aren’t very ambitious. Even if they’re at Oxford or the LSE. (Inc) 

Ex-banker’s photo was wrongly circulated on ‘most wanted list:’ “I spent 13 years working in the City, working for some of the largest investment banks. I spent a lot of time building a career and that was gone straight away.” (Independent)

Getting into Wharton is about to get harder. (TheDP) 

Maybe you don’t want to work in a corporate M&A team after all. (Reuters)  

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