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Morning Coffee: Goldman Sachs protects its greatest assets, how to lose $6.6bn in four years

Goldman Sachs junior bankers

Goldman Sachs has come out and said it – junior bankers are the best. As Wall Street struggles to keep hold of analysts fleeing to the buy-side, 23-year-old bankers have had their pay ramped up and their working hours (relatively) lightened.

The recruitment and retention of juniors is “the most important thing we do”, said Richard Gnodde, co-CEO of Goldman Sachs International and co-head of its investment banking division during a podcast on capital markets in Europe and Asia. Banks have to “evolve with the marketplace” and think about work-life balance of analysts, increase diversity and shake up the “content” of the job to make it more appealing to the younger generation.

Not that Gnodde is suggesting that banking is in any way dull. “It’s one of the most exciting careers for young people, it offers real responsibility and opportunity at an early stage of your career,” he said. After a couple of years, you’ll be trading, or sitting in client meetings that will result in deals that could easily end up on the front page of the FT or Wall Street Journal.

“The quality of the people, the quality of the client base and other important rewards that make for a successful career are all there and rival any industry out there,” he said encouragingly.

He also reiterated the fact that a UK exit from the EU would be bad for Goldman Sachs’ London operation and bad for the City of London. There are 6,000 Goldman employees in London, or 90% of its European headcount, he says but just 30% of its revenues in the region come from the UK.

Not surprisingly, jobs would leave – a lot of client-facing roles would head to the Eurozone, but trading businesses could (perhaps) stay in London. However, a “significant proportion” of its employees would move.

Separately, of the six billionaires minted at Glencore when the firm went public in 2011, only three remain. The share price has tanked – it’s lost 70% since floatation – and half of its executives have fallen out of the billionaires club. Chief executive Ivan Glasenburg had a stake worth $9.4bn in 2011. It’s worth $2.8bn now.

Meanwhile:

Ever wondered what it’s like on the trading floor of J.P. Morgan in London? Here’s a pictorial guide to a day in the life of an intern (Business Insider)

Robots taking over all the jobs previously performed by humans has not been as rapid as you might think. (Financial Times)

J.P. Morgan, Goldman Sachs and Morgan Stanley have teamed up to start reference data company to clean up their vast reams of unruly data. It’s also a cost-saving device. (Financial News)

There’s never been more debt, so why is there no liquidity in the bond market? (The Tally)

In the latest ex-military cyber security hire, J.P. Morgan has taken on Ray Odierno, the former U.S army chief of staff. (Bloomberg)

Wells Fargo has cut ten jobs in its investment bank in Charlotte (Charlotte Business Journal)

Napping at work has become much more acceptable over the last decade, but it’s not practical. (Bloomberg)

Dick Fuld is selling his 71.3-acre house near a ski resort for $30-50m in what could be the biggest ever auction sale. (Bloomberg)

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