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Morning Coffee: Surprise! – Here’s whose pay is being squeezed at BofA. Time to live in Luxembourg

Contractor rates BofA

Contractors squeezed, again

For all the talk about investment banks wanting people who know how to code and Goldman Sachs being more tech company than investment bank, it remains the case that whenever banks want to cut costs, they like to hack away at their technology functions.

Earlier this week we reported that Deutsche Bank is eliminating around 27% of the jobs in its tech team. Now, Bank of America is said to be squeezing pay for its contractors. The Charlotte Business Journal reports that BofA has informed its contractors at its Charlotte head office that their rates are being reduced by 10% and they may be obliged to take two weeks off with compensation.

It’s not clear whether BofA’s rate cuts will be rolled out globally, but if they are it won’t be the first time that technology staff in the world’s financial centres have borne the brunt of cost cutting. Barclays. HSBC and RBS have all done something similar in London. 

Separately, you want to work in Luxembourg. UBS’s 2015 prices and earning report reveals that, when pay and the cost of living are factored in, Luxembourg based workers earn an average of 23.8% more than workers in New York and 35% more than workers in London. They also work a mere 1,703 hours a year, compared to 1,847 in New York and 1,740 in London.

Meanwhile:

Standard Chartered has engaged a search firm to find a new head of its investment bank. (Bloomberg)  

Fixed income traders haven’t had a good third quarter at BofA, but equities traders are up ‘strongly.’ (Bloomberg) 

Don’t talk to Jefferies about distressed debt and high yield energy bonds. (WSJ) 

Jefferies just hired this high yield debt trader. (Swiss Info)

Now Jefferies is being sued for disability discrimination. (Bloomberg) 

Will China devalue by 20%? (CNBC) 

Why is it there are so few female hedge fund managers when they’re so much better than men? (Financial Times) 

Politician goes into finance, instead of the other way around. (PIOnline)

New millionaires want their money managed by robot. (Quartz) 

How you’ll know that you have to quit your job. (Inc) 

Delayed at Heathrow? Blame the headwinds. (CNBC)  

If you have savings in your 20s you’re doing something wrong. (Elite Daily)  

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