2012 hasn’t been a great year for M&A in Europe – during the first nine months, deal activity fell to its lowest level since 2004. Now, therefore, is not a great moment to have your bonus from last year clawed back.
Will this be the fate of 2011 bonuses paid to M&A bankers at Barclays Investment Bank and Perella Weinberg? The two banks advised HP on its $11.1bn acquisition of Autonomy, earning $18.1m and $12m in the process. HP says it has been compelled to write down $8bn of its $11bn purchase after unearthing accounting irregularities. Automony is disputing this and the issue could yet be disputed in courts. Deloitte and KPMG carried out the due diligence on the Autonomy and would seem to be top of the culpability heap, but the deal hasn’t exactly done much for the reputation of HP’s advisers. The FSA is already pushing for banks to claw back bonuses this year. This could prove an opportunity for Barclays in particular to appease the regulator…
Barclays declined to comment and Perella didn’t get back to us.
Separately, the Wall Street Journal points out that hiring is still happening in Asia and names two places which are either looking for staff or have recently hired. They are: Jefferies and Oppenheimer. On the other hand, the Wall Street Journal says Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley, Roth Capital Partners, Piper Jaffray and Renshaw Capital are all scaling back their Asian operations.
John Hughes, Kweku Adoboli’s colleague, has set up an online gambling firm called ‘Bets of Mates.’ (Financial News)
“I honestly loved him, and to a certain extent I still do,” said Hughes, who, like Adoboli, at times cried on the witness stand. In an e-mail, Hughes told Adoboli “I love you and loathe you in equal measure.” (Bloomberg)
Kweku Adoboli’s last call with his bosses. (Guardian)
At least one of Kweku’s former UBS colleagues, Ron Greenidge, is pursuing a claim for unfair dismissal. (The Times)
Sentencing Mr Adoboli, Mr Justice Brian Keith told him that: “The tragedy for you is that you had everything going for you. “ (Financial Times)
Credit Suisse is still betting that the pre-crisis model of universal banking can work well. Credit Suisse’s fixed-income operations are much larger than those of UBS. (Financial Times)
Dougan declined to say how much Credit Suisse expects to save through its revamp or how many jobs may be cut. (Bloomberg)
“I think by the time we’re done, we’ll have five or six universal banks left standing,” Jain said. “Clearly, Deutsche Bank wants to be one of them.” (Bloomberg)
Marianne Lake, the new JPMorgan CFO, speaks quickly, is half English and grew up in the UK. She is also assertive in the style of Jamie Dimon. (WSJ)
Standard Life is cutting 139 jobs, mostly in Edinburgh. (Scotsman)
Ernst & Young is hiring 30 people in Dublin. (Independent) .
Bankers are becoming landlords to top up their bonuses. (Bloomberg)
Are Social Networking Internet Sites a Factor in Psychotic Symptoms? (Science Daily)
It turns out multitaskers are terrible at every aspect of multitasking. (PBS)
Find a job by throwing a seasonal party and pitching yourself to your friends. (Fortune)