As we discovered yesterday, the vast majority of bankers who lose their jobs in the City of London don’t find comparable new ones. Only 28% of them reappear in similar roles. What happens to the rest? The Times has an excellent article today which offers some clues.
Among others, the Times interviewed Luke Morley – an American banker who moved to London to set up a hedge fund, Jamie Troughton – a hedge fund manager who lost his job in 2011, and Charlotte Saunders – a wife whose banker husband has been laid off repetitively.
The scene unearthed by the Times was bleak. Morley’s savings were running out. “I’m left sitting here in a new country, a new city, with no job, no recommendations and no money. I had no idea how expensive London was and it’s not an easy city. People are colder than I expected. It’s a rough place,” he said. Troughton is in his fifties and had been diagnosed with depression. He spent the morning lying on the bed playing with Twitter. Saunders’ husband recently found another role after eight months out of work. She said the time out of the market put pressure on their marriage: “It’s a real test of your relationship. If we hadn’t been happy together, it would have sent us over the edge.”
However, there were some speckles of good news. One of the bankers interviewed was 50 year old Oliver Preston, who was laid off by Lehman in 1995. Preston was a keen cartoonist and took a portfolio of his work to a career counselling session organised by Lehman. “Do you realise,” the counsellor asked, “that every time you talk about the City you look down and every time you talk about cartoons you look up? I think you should consider very seriously what you do next.”
Three years later, Preston had had his cartoons published in The Times, The Spectator and Punch. Seven years later he has a publishing and greetings-card business and can afford to take his family to live in Switzerland from January to March. “I’m a million times happier,” he told the Times.
On average, variable pay for senior bankers was three times the level of fixed pay in 2011. (William Wright)
Signs that the hedge fund you’re joining will blow up. (Market Folly)
WH Ireland has bought the private wealth management business of Seymour Pierce. (Financial Times)
Internships at technology companies are much better paid than at banks. (Business Week)
The experience of one Chinese banker shows how important political patronage is for careers in China. (WSJ)
Colm Kelleher has been meeting retail bankers at Morgan Stanley and urging them to work with investment bankers to increase profits. (Dealbook)
Ferrari had its best year ever last year, with record sales in the USA, China, Germany and Great Britain. (Ferrari)
Andrew Macmillan, former head of a commodity team at Tudor Investment Corp, is setting up a new hedge fund called Stewart Asia Investment. (Bloomberg)
Fixed income researchers are best off working at Deutsche Bank. (Deutsche Bank)
Does an MBA pay in private equity? (PoetsandQuants)
Caffeine during pregnancy leads to low birthweight babies. (ScienceDaily)