The gentlemanly capitalists of UBS may have met their nemesis. It is a 48 year old multilingual Italian polyglot who likes to hold conference calls at 5am.
As we suggested earlier this week, the 90 investment banking redundancies at UBS appear to carry the fingerprints of Andrea Orcel, the new head of UBS’s investment bank. Orcel was widely expected to bring a ‘Lazard moment’ to UBS and to clear out some of the senior bankers who’ve been there a long time. Today, Reuters suggests this is precisely what’s transpiring.
“Subtle cultural changes,” are afoot at UBS, suggests Reuters. Known for an “aggressive style,” Orcel is at odds with the collegiate, gentlemanly culture in UBS’s M&A business which dates back to SG Warburg and Sigmund Warburg’s ‘artisan banker’ approach. Orcel has already hired former BAML colleague Javier Oficialdegui to run the FIG team at UBS, and bankers say the culture there is shifting to become more “individual and client-driven,” like Orcel himself. From now on, they suggest the focus will be on big clients and revenue-sources rather than relationships alone.
The test of Orcel’s determination to make his mark on the old guard will seemingly be the survival of Warburg alumni like Simon Warshaw, global head of investment banking at UBS. Many other former Warburg bankers have left to set up their own boutiques.
For the moment, UBS’s M&A business seems likely to become a lot more political. Orcel is, “very tribal,” said one senior UBS banker in London. He will surround himself with people he “trusts.”
Kweku Adoboli could explain ETFs to your grandmother. (Reuters)
Kweku Adoboli’s appraisals said he was a high potential employee in danger of burnout. And bankers at UBS had silly nicknames. (Financial News)
Another investment bank (Jefferies) says the third quarter has been fairly solid. (WSJ)
But Jefferies fixed income trading revenues fell 9% between Q2 and Q3. (FT)
America’s richest hedge fund managers. (Forbes)
Michael Pope, a managing director in loan sales at Goldman Sachs, is leaving. (Bloomberg)
Maybe Goldman needs to cut pay. This might help its stock price. (Reuters)
VTB is raising capital, says it’s become conservative, that the next five years will be hard ones. (WSJ)
Build yourself a posse of 15 people who will help you find a new job in the event that your current one disappears. (Economist)
Deutsche is not restricting its redundancies to retail banking. (Bloomberg)
Humans may get a neurochemical reward from sharing information, and a significantly bigger reward from disclosing their own thoughts and feelings than from reporting someone else’s. (The Atlantic)
We are moving toward a world where there is perfect memory and unlimited knowledge. (Rick Bookstaber)
If you want to survive a plane crash, sit at the back and assume the ‘brace position’. (The Economist)