This is not turning out to be a good week at Deutsche Bank. Firstly, the bank’s shares fell nearly 6% yesterday over concerns about its exposure to Greece. Secondly, even before Anshu Jain has left, stones are being turned on the LIBOR affair and there are allegations that he “knowingly made inaccurate statements” to the Bundesbank. And thirdly, senior Deutsche staff are quitting – seemingly unexpectedly.
With luck, the horrors will turn out to be mere phantoms. Deutsche Bank’s direct exposure to Greece is limited – at the end of January the German held just €298m in Greek corporate and public debt. Anshu Jain has dismissed allegations that he misled the Bundesbank as “baseless”. And yesterday’s “shock” departure of Henrik Asklaksen, Deutsche’s global head of M&A for more than a decade, may have been foreseen by someone on Deutsche’s side. – The Wall Street Journal points out that Asklaksen’s exit comes only one month after Deutsche hired Jeff Urwin, the former co-head of global banking at J.P. Morgan…
Separately, if you want to stand out as an eager young man with a will to do well in finance, you could always follow in the footsteps of investing ‘veteran’ Bill Gross. Back in the day, it seems that Gross did some strange things to differentiate himself. Bloomberg reports that these included, ‘spending three months at Las Vegas blackjack tables—16 hours a day, seven days a week—or running six marathons in six days.’ Aged 71, Gross is more interested in his favourite donuts but remains acutely aware of the performance of rival funds. Investing other people’s money is a, “neurotic quest for love,” he suggests.
Morgan Stanley wants to push into fixed income. Again. Only last year it was eliminating jobs from its rates and foreign-exchange trading desks. Now rates will be at the start of a new expansionary push. The bank is hiring selectively, but doesn’t plan to allocate additional headcount to the business. James Gorman says the withdrawal of European banks is creating ‘opportunities.’ (WSJ)
Morgan Stanley is reinvesting capital previously held against unprofitable trades into areas like municipal bonds, credit and securitization. (Reuters)
Banks with the biggest exposure to Greece, by nationality. (Twitter)
Hedge funds were having a good year, until the Greek crisis broke. (Reuters)
If Britain leaves Europe, Goldman Sachs says it will do more hiring in Frankfurt. (Reuters)
US M&A was up 60% in the first half, making it the best start to the year since records began in 1980. (Financial Times)
Tidjane Thiam has been telling Credit Suisse staff that he does not love Asia. (Financial Times)
A Greek exit would turn the euro into a glorified version of a currency peg. (BBC)
How successful people beat stress. (Quartz)
The 10 worst personality types you’ll meet at work. (Telegraph)
Google is the most popular employer for MBAs. (Poets and Quants)