Investment banks rarely call job cuts what they are. Efficiencies, eletronification, rationalisation – they all mean that, ultimately, fewer people will be working for them. And it’s usually the back office that feels the bulk of the cuts.
Deutsche Bank is making big cuts to its investment bank and co-CEO Anshu Jain has been given sole responsibility for implementing those $5.1bn in cost-savings. Deutsche’s back office is rebelling.
Around 2,500 people in Deutsche’s corporate centre at the bank’s HQ in Germany have, through their union, called for Jain’s resignation. The uncertainty over where and when the job cuts will occur is affecting morale, it says.
“A radical new start would restore our credibility and could produce a real boost to morale,” a flyer distributed outside its Frankfurt HQ said.
Separately, it’s emerging just how in demand Tom Hayes, the former UBS trader at the centre of the Libor-rigging scandal was. Before his eventual move to Citigroup in 2009, Goldman attempted to poach him. It offered a $3m bonus to lure him away from UBS when he was a star yen derivatives trader in 2008. UBS offered $2.5m for him to stay, and he accepted.
J.P. Morgan is eliminating 5,000 jobs over the next year (Wall Street Journal)
Credit Suisse’s global head of macro products David Tait says that childhood abuse led him to seek self-esteem from financial wins and career success (Financial Times)
Tom Hayes offered his contact $100k to keep the Libor rate low (BBC)
Dick Fuld, who fired many of Lehman Brothers’ top risk managers, says every employee was a risk manager because they owned stock (Bloomberg)
Top Dick Fuld quotes: “You do not know what you do not know. Chew on that.” “You don’t have time to hear all the things I would have done differently.” (Bloomberg)
Cripsin Odey had his worst month ever in April (Financial News)
Deutsche Bank has hired a 15-year BAML veteran as head of retail investment banking coverage. (Press release)
Macquarie boss says that culture change in investment banking will take years (AFR)