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Late Lunchtime Links: Disaster for jobs and bonuses as £58m in M&A fees disappears

Where the fees have gone

Where the fees have gone

In this bad, bad, year for European M&A businesses, every little helps. It’s more regrettable than it might otherwise have been, therefore, that the BAE/EADS merger which might have generated a combined £58m in fees for M&A bankers at Morgan Stanley, Goldman Sachs, Gleacher Shacklock BNP Paribas, Lazard and Evercore, won’t be happening after all. A note on BAE’s website says the deal was based on ‘sound industrial logic’ but that the interests of the governments involved couldn’t be reconciled.

For the banks concerned, the deal’s failure could result in lower bonuses and/or fewer jobs. Figures from Thomson Reuters suggest that in the first nine months of 2012, Goldman Sachs worked on 44 fewer deals than the same period last year. Deutsche worked on 30 fewer, Morgan Stanley on 66 fewer, BNP Paribas on 32 fewer, Lazard on 15 fewer and Evercore on 2 fewer (Gleacher Shacklock isn’t listed). In the circumstances, a massive deal would have been a bit of a godsend.

During Goldman’s Q2 conference call, David Viniar indicated that the bank was intending to maintain headcount as much as possible so that it provided a strong level of service to clients. It’s things like this that might make Harvey Schwartz reconsider.

Meanwhile:

Harvey Schwartz, Goldman’s new CFO, met his wife after she was shot subduing a hostage-taker in a bar. (Bloomberg)

Goldman vice chairman says they could be in a challenging position for the foreseeable future but that emerging markets look quite good. (Bloomberg)

There have been more than 30,000 financial services job losses in Western Europe this year, supposedly. (Bloomberg)

The average pay package of securities industry employees in New York State was $363k last year, up 16.6% over 2009. (Dealbook) 

The cash bonus pool on Wall Street is shrinking. (Bloomberg) 

BNP Paribas has cut 15 research jobs in Asia. (Bloomberg)

In possible bad news for investment bankers at Mitsubishi UFJ, Morgan Stanley and Mitsubishi are convening this week to discuss extending their partnership. (Bloomberg)

Profits at CityAm fell 95% last year. (The Guardian) 

11 states in the Eurozone back transaction taxes. (Reuters)

Ex-Lehman trader is new hedge fund god. (Bloomberg) 

Johnny Cameron, former head of investment banking at RBS, was seen last night at a debate on whether London should love its bankers. (Financial News)

Investment bankers are basically travelling salesmen. (NPR)

During your first year in an investment bank you will earn as much per hour as a plumber. (Firmex)

You can earn a lot of money as a welder. (Bloomberg) 

Harvard neurosurgeon has near-death experience, is met by a “beautiful blue eyed woman.” (Telegraph)

Morgan Stanley recommends that you read eFinancialCareers. (Morgan Stanley)

Comments (1)

Comments
  1. You made no mention of Perella Weinberg, who was co-lead on the EADS side (with Evercore). BNP Paribas and Lazard were later additions

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