Unfortunately, it doesn't make for great reading. The main thrust is that banks have barely even begun cutting costs, that the "adjustment challenge" they face should not be underestimated, that "lower revenues and higher capital needs mean the cost base must be cut radically," and that a "significant shift in compensation practices" will "likely soon occur."
As was the case last time McKinsey produced a banking report, it includes an interesting breakdown of which business areas will be viable in the new environment and which won't. We've reproduced this below. You do want to be working in FX, flow rates, cash equities and structured equity derivatives. If you haven't done so already, now is the time to be getting out of structured rates, structured credit and flow equity derivatives.
McKinsey throws in some additional gloom with the chart below, which lays it straight: banking was a growth industry. Now it's not. Nor will it be any time soon.
Morgan Stanley analysts say asset management's not a growth industry either. (Institute of Trading - full PDF)
Julius Baer is cutting 1,000 jobs worldwide and 100 in London. (Evening Standard)
Hays says conditions are “very difficult” in the UK banking sector, but Germany is great. (Scotsman)
Michael Page has been cutting staff everywhere except Asia. (Financial Times)
Michael Page’s results suggest even Latin American hiring isn’t great. (Financial Times again)
FSA fines will be directed towards helping service people injured in wars. (The Times)
This year’s average graduate starting salary is £22.8k, down 13.2% on last year. (Telegraph)
Stephen Hester seems to have given up on RBS’s share price reaching 77.5p and therefore ever getting the big bonus that’s contingent upon that. (Guardian)
Without any trace of self-pity Mr Hester admits his job can be difficult. (HeraldScotland)
Help, I’m an alpha female. (Salon)
Does success require that you sleep with your smartphone? (HBR)
Africa is where the growth is. (Reuters)
eFinancialCareers survey finds half the employees on Wall Street think they're getting bigger bonuses this year. (BusinessWeek)