Year on year, Goldman’s European bankers don’t seem to be doing very well. JPMorgan’s do.
As is variously pointed out today, revenues at Goldman Sachs International, Goldman’s London-based business, fell 31% in the first half of 2011 on the back of all sorts of nefarious circumstances. However, revenues at JPMorgan’s EMEA investment banking business rose 15% in the first half.
Admittedly, we’re not comparing like with like – Goldman’s figures are focused on London, and JPMorgan’s are EMEA wide. But with both banks having their European activities headquartered in London, it looks like JPMorgan is having a comparatively good 2011 and Goldman isn’t.
It also looks like Goldman’s London bankers could suffer more than others in any cost cutting. Total administrative expenses at Goldman Sachs International, including compensation fell 38% year-on-year in the first half. This compared to a 10% reduction in operating expenses across the firm as a whole.
As we mentioned this week, Goldman is thought to be activating a clause in its contracts in order to reduce London base salaries in line with its base salaries elsewhere in the world. Last year, it paid its average London-based employee more than twice as much as those across the firm as a whole.
A former Goldman partner points out that Goldman would be worth more if it were broken up. (CNBC )
Bath University student who hung around in a sandwich board proclaiming has availability for work has been employed by RBS. (Financial News )
“Moynihan feels like he’s under siege. Krawcheck was a possible replacement for him if the board lost faith in Brian. With her gone, his job is safer.” (CNBC)
Tom Montag has emerged as the likely candidate to succeed Brian Moynihan. (Bloomberg)
Montag was in charge of trading at Merrill Lynch when its losses swelled to $15 billion in 2008?s fourth quarter, forcing BofA to take a $20 billion government handout. (Wall Street Journal)
The Hong Kong Monetary Authority has decided that it would probably ike HSBC to relocate there. (CityAm)
Lehman trader who tried to kill himself after finding his job had been automated, has written a book. (Bloomberg)
Scrapping the 50p rate would be “phenomenally immoral and send an appalling message to the overwhelming majority of hard-working people in this country.” (Financial Times)
Mr Osborne’s fear is that if investors were to sense that the UK’s public finances were spiralling out of control, that would lead to a run on our enormous banks. (BBC)
George Osborne left the Lloyds City dinner early last night to attend the GQ man of the year awards. (GQ Magazine)
Together with intelligence, self-control turns out to be the best predictor of a successful and satisfying life. (NY Times)
An interesting technique for securing an interview at a bank. (Dealbreaker)