Have you spent your career in financial services swapping firms? Shame on you. Short-termists are being blamed for banks’ cultural misdemeanours. Length of service is a sign of cultural cohesion.
In today’s UK Select Committee hearing on the UBS Libor scandal, Andrea Orcel said it was the rapid growth and external hiring in some businesses at UBS that undermined the bank’s culture. Had UBS not hired so significantly from outside, it would have maintained an ethical culture and been less troubled by Libor fixing, implied Orcel. Bankers who swap jobs frequently are more interested in themselves than in upholding the reputation of the firm they’re joining, agreed Members of Parliament on the committee.
It’s an interesting theory, particularly given that Barclays also hired heavily from outside and therefore also has very little institutional memory, and has also had ‘problems’ with Libor.
If job hoppers are the enemy, people who’ve spent decades working at a single firm, are all-important cultural champions. Jez Staley, whose departure from JPMorgan for hedge fund BlueMountain became apparent yesterday, had spent 34 years working at JPMorgan. When he went before the Treasury Select Committee this morning, Andrea Orcel brought two long serving employees – chief risk officer Philip Lofts who’s spent 29 years working for the bank, and Andrew Williams, global head of compliance, who’s been at UBS for 19 years. Ironically, Orcel himself only joined UBS last year.
UBS is one of the only banks that gets it and now has the right business model, say analysts at Berenberg. (Financial News)
Bob Diamond, Paul Taubman, Vikram Pandit, John Havens, Jerry del Missier, and Yoel Zaoui are all still out of work. (Breaking Views)
Seen in the City with a grande latte: Bob Diamond. (Twitter)
The highest paid person at Paulson Europe received £1.4m for year ended March 2012, down from £15m in 2011. (Financial News)
Asia Pac partner at Goldman ‘retiring’ after nine years. (Bloomberg)
Macquarie’s hired an energy trader. (Bloomberg)
Why Britain needs banking. (Edmund Conway)
102 advisors who applied for a waiver from the new RDR requirements have been given another 12 months to pass. (FT Advisor)
Credit Suisse’s co-head of high yield sales has left following an intimation that he wouldn’t be paid enough. (Bloomberg)
Upon discovery of the Whale loss, Jamie Dimon said some people acted like children and thought only of the implications for their own careers. (Bloomberg)