Banks have made more than one hundred thousand people redundant this year and have no intention of ever hiring them back again, so you may as well give up now . So suggests Reuters, which has made some calculations and concluded that 160,000 jobs in banking have disappeared this year, that new hires have been outnumbered 2:1 by redundancies (suggesting, cheerily, that 80,000 people have been hired into banks this year) and that a high proportion of the layoffs have happened in Europe.
So far so dire and so familiar. Last week, the CEBR predicted that by the end of 2014 the City of London would have 40,500 fewer financial services jobs than in 2011. Doom laden predictions are de rigueur.
In the case of investment banking, they are also wrong. Reuters’ calculations coincide with the release of some calculations from analytics firm Coalition. Coalition thinks investment banks have cut ‘only’ 4,300 ‘producers‘ this year. When non-producers are added in, that number may be doubled or tripled, but it seems unlikely to be much more than 20,000. Third quarter reports from Goldman Sachs, Credit Suisse, JPMorgan, UBS, RBS and Deutsche suggest those banks combined have only trimmed 4,500 people this year. So, yes – there are redundancies. But let’s not get carried away.
Separately, Bloomberg reports that Vanguard, the US mutual fund group, is growing in the UK. The FSA register shows that it now employs 48 people in London, up from 33 in December 2011. 15 new jobs won’t make much difference, but Vanguard is at least likely to hire a few more people next year.
The French government is banning high speed trading and trading in agricultural derivatives. (Financial Times)
France will ask banks to set up “strict” walls around market activities that are not necessary to financing the economy. (Bloomberg)
Slow death of a strategy consultancy. (Economist)
Recruiter explains why financial services interviewers ask stupid questions. (Financial Times)
3i is looking at bonuses and will be paying high performers more and low performers less. (Financial Times)
A simple trick to use when introducing yourself. (Farnam Street)
One of the new partners at Goldman is a waitress at an Irish pub. (CNBC)