If you’re an investment bank, London is an expensive place to base your middle and back office staff. According to Mercer, London is the 25th most expensive city in the world to live in, whilst according to Trip Advisor London is the most expensive UK city for a night out. Unsurprisingly, therefore, banks are shifting people out of London and into cheaper locations – like Chester and Bournemouth.
The Financial Times reports that JPMorgan is increasing its intake of (cheap) graduates in Bournemouth from 60 to 120 this year. It adds that JPMorgan’s people in Bournemouth are paid 30% less than their colleagues in comparable roles at Canary Wharf. Bank of America is on the same near-shoring bandwagon: it wants to move 2,000 of its back and middle office staff to Chester over the next 10 years, says the FT. And then there’s Deutsche Bank, which is hiring 25 fixed income sales traders in Birmingham and thinking of setting up an equity sales team there.
Deutsche Bank’s Birmingham office is in Brindley Place, close to the centre of the city. However, both JPMorgan’s Bournemouth office and Bank of America’s Chester office are campus-style affairs in which employees work outside town in multi-acre office complexes. Bank of America’s Chester campus is 12 acres large and includes football pitches and basket ball courts. JPMorgan’s Bournemouth campus (known as ‘Chaseside’) is located outside the city not far from a large golf club. The shift to campus-style ‘corporate university’ working is reminiscent of the Googleplex and might be popular if banks’ out of town campuses allow for cycling to work or lunchtime strolls in the grounds. On the other hand, people used to working in central London could find the new arrangements a bit oppressive. It’s probably better than your job being off-shored to the Philippines, however.
UBS let go of people implicated in the Libor scandal even if they’d just been copied in on emails. (Financial Times)
French banks want to expand in the US – again. (BankTech)
DBS wants to hire 10 senior corporate bankers in Hong Kong and China. (Bloomberg)
E&Y Banking Barometer says 64% of Britain’s banks expect to reduce headcount in the first six months of 2013, compared with 12% six months ago. In mainland Europe, 45% expect to reduce staff numbers. (The Times)
RBS has allocated £10 per head for staff Christmas parties this year. It’s £20 at HSBC. (Telegraph)
Fund managers are cutting jobs too. Henderson is cutting 9% of its staff. Union Investments in Germany is cutting 10%. (Financial News)
RBC has increased its bonus pool by 11%. Citigroup has reduced its bonus pool by 10%. (Bloomberg)
The plight of the alpha female. (City Journal)