Financial services recruiters have been complaining for some time that in this particular down cycle, something is missing. Namely: the ambitious pretender to the throne. In past downturns organisations like Bear Stearns and Lehman, or Nomura and Barclays were in growth mode and were hiring even as other banks were laying people off. This time, the hirers are just Cantor Fitzgerald and a handful of smaller firms, and they're recruiting in tens and hundreds rather than thousands.
It's good news, therefore, that a large bank has declared its intention of launching a new European brokerage business. Financial News reports that BNY Mellon is setting up a new European agency brokerage business for fixed income and equity products. So far, it has only hired 12 people. BNY declined to comment on how many people it intends to recruit in total. With luck, those 12 are merely a start.
Separately, the Telegraph reported at the weekend that ex-Lehman bankers will soon be getting the bonuses they were owed for 2008 and that all Lehman creditors who are owed less than £150k will be getting 90% of their portion. Sounds exciting - except that a spokeswoman for PWC, which is handling Lehman's administration, told us this is not entirely accurate. Most of Lehman's 5,000 employees were working for a different part of the organisation than the part that's making the payments, she said. They will have to wait, although PWC is optimistic that other creditors will receive a first payment before Christmas. The 2,500 ex-Lehman people who moved to Nomura are apparently owed nothing from the administrator because Nomura took on their liabilities.
Some 500 former Lehman employees are still working on unravelling the European operations of Lehman. (Financial Times)
Jefferies has been bought by Leucadia National Corp. Maybe this will help its credit rating and fixed income trading business? (Reuters)
Credit Suisse says it’s not quitting fixed income because it has a larger market share than UBS. (Reuters)
And yet this chart suggests Credit Suisse's share is 4.3% to UBS's 4.0%. Not really a compelling argument, therefore. (eFinancialCareers)
The investment bank is still absorbing 60% of Credit Suisse’s own capital. “That is too much in the long term.” (Channel News)
Vikram Pandit’s getting $15.5m to go on his merry way. (Reuters)
And so is John Havens….(The Star)
Citigroup says it had no choice but to pay Pandit that $15.5m – he was legally entitled to it. (Reuters)
Standard Bank is cutting 135 people in London, says sub-Saharan Africa doesn’t warrant a large investment banking presence. (Financial Times)
In commodities and sales and trading, 91% and 84% respectively of mid and senior-level staff are men. (Financial Times)
“Today, the gap between the pay of a managing director and partner at Goldman Sachs is probably 10 times smaller than it used to be.” (Financial News)
Hedge fund pay has risen 15%, but 75% of hedge funds now defer top earners’ compensation. (Financial News)
What happens when two hedge fund managers get stuck in a lift? (Telegraph)