Jefferies Q2 results are out. As ever, with Jefferies reporting ahead of everyone else, they're a bit of a bellwether for how the industry's doing. And actually, it seems it's not doing too badly: yes, Jefferies profits were down 26% on Q2 2011, but overall revenues were down only 2%, fixed income sales and trading revenues were up 30% year-on-year, compensation held up and there were a mere 49 redundancies.
Less promisingly, equities sales and trading revenues fell 32% and M&A revenues fell 33% compared to the prior year quarter. Jefferies, which had been adding headcount, cut headcount instead.
However, Rich Handler, Jefferies' CEO indicated that the bank might be doing some more hiring for DCM in Europe. “In Europe, we’re seeing the capital markets start to take share from the banks in terms of debt financing, and that’s definitely something that is giving us some momentum in investment banking and fixed income in Europe,” the Financial Times reported that Rich said.
Anshu Jain himself has personally called Sharon Bowles to discuss the EU’s proposed 1:1 bonus: salary ratio. (Financial Times)
Jerome Kerviel’s ex-boss says he’s a pariah and his career has stopped dead. (The Times)
Banks are reducing salaries by hiring people in for less. (FinancialNews)
The FSA banned 71 people from working in banking in 2011; 53 in 2010; 4 in 2003. (Bloomberg)
Profit down 19% at SocGen’s Swiss private bank. (Bloomberg)
RBS is cutting 600 jobs from its financial planning service. (Guardian)
Photolibrary: Graduates doing bad jobs. (Atlantic)