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Morning Coffee: The worst thing Anshu Jain said yesterday. Illicit emotions on the trading floor

As of Wednesday night, Anshu Jain is in charge of strategy at Deutsche. Given Jain’s background in the investment bank, this might seem like good news if you’re – say – a Deutsche Bank fixed income trader. And yet, any celebrations would be premature.

In his new role, Jain will have sole responsibility for delivering $3.9bn of cost savings through Deutsche’s reorganization plan. Given the vagueness of this plan, there have reportedly been complaints internally that no one knows exactly what’s going on. One thing is certain, however: those cost cuts are coming soon. “We are not satisfied with the cost savings we have delivered,” said Jain ominously yesterday. “That was unsustainable.”

Separately, if you work on a trading floor you need to keep a handle on emotions like joy. Given the difficulty in tracking communications between rascally traders, banks are increasingly turning to electronic monitoring systems. One such system, run by a Fintech company called Behavox, reportedly uses laughter as a leading indicator of wrongdoing. “If a trader laughs more often in conversation with a person, uses more slang in emails to them or swears more, that is a good indication of how close they are,” Erkin Adylov, Behavox founder and ex-Goldman analyst, told Euromoney.

Meanwhile:

Deutsche Bank shares have risen less than 7% since Mr. Jain and Mr. Fitschen took office three years ago. (DealBook)

39% of shareholders at Deutsche Bank voted against the management yesterday. Some complained that shareholders were having to foot the bill of the ‘casino-like’ investment bank. (Financial Times)

Colin Grassie, chief executive of Deutsche Bank in the UK, and Alan Cloete, co-chief executive of Asia Pacific, will leave the bank “in the near future”. Both are in their 50s. Both joined Deutsche in the 1990s. (Financial News) 

96% of Goldman Sachs’ investors approved of the bank’s executive pay plan. (Bloomberg) 

Bad news for non-EU bankers in the City of London – the UK wants to place further limits on skilled migrants. “We should be getting to a place where we only bring in workers from outside Europe where we have genuine skills shortages or require highly specialist experts,” said Mr Cameron. (Financial Times) 

Why banks have no intention of changing their behaviour. (Bloomberg)

J.P. Morgan says Barclays RBS, which were fined $3 billion on Wednesday for rigging currency markets, will have to set aside another $11 billion for misconduct within two years. (Bloomberg) 

Everyone’s hiring sponsors bankers in Europe. (Financial News)

The Goldman Sachs technology push: In the past few weeks, Goldman has hired an executive to build a digital lending platform, co-led a $50 million investment in a bitcoin startup and launched a podcast called “Exchanges at Goldman” in which senior executives talk about technology on Wall Street, among other things. (Reuters) 

How to handle your passive-aggressive colleague. (BBC)

Items you must have in your CFA exam pack. (300 Hours) 

You may not leave Perella Weinberg and start your own firm. (Bloomberg) 

Grant Thornton’s analysis suggests academic grades aren’t correlated with work performance. (BBC) 

Steve Cohen’s new hedge fund has a lactation and nap room. (Business Insider) 

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