If you work as a trader in an investment bank, let Kweku Adoboli be a guide to all that you don’t want to do. So, you don’t want to spend everything you earn, you don’t want to become addicted to spread betting, you don’t want to be imprisoned after losing $2.3bn through rogue trading, and you don’t want to be so busy working that you forget to sort out your immigration status.
Kweku did all those things, but it’s that latter that’s coming back to bite him and that could also prove a nightmare for other non-British traders working in the City of London. Aged 30 when he was a director on UBS’s ETF trading desk, Adoboli had been in Britain for considerably longer than the five years necessary to attain permanent resident status. However, he didn’t bother applying for it. In a statement on Adoboli’s new crowdfunding website, his friends say he was just too busy: “The demands of his job at UBS meant that he was traveling frequently and did not have time to make the application.”
As a result, Adoboli is now seen by the UK authorities as both an ex-convict and as a Ghanian national of foreign citizenship, and they want to deport him. He’s appealing against the deportation order (hence the crowdfunding), but would be in a much stronger position if he’d just taken a day off and applied to be a permanent resident six years ago.
Admittedly Adobili is a special case, and no one’s talking about deporting EU nationals who comprise around 50% of the employees in some sectors of London banking, but still. If you want to stay in the City, it might be an idea to sort out your right to remain in the country, no matter how many client meetings you have to attend.
Separately, Manny Roman, the French former Goldman Sachs banker who had been running Man Group in London is off to run Pimco in Newport Beach. The resulting vacancy at the top of Man Group is being filled by Luke Ellis, who sounds like a bit of an old hippy. In 2008, Financial News reports that Ellis left finance and went to work on his Sussex farm, growing crops and keeping livestock. There, he became self-sufficient. “I’m a child of the generation who settled around the television to watch The Good Life [a ’70s sitcom about living off the land in suburbia],” Ellis told Financial News four years ago. It didn’t last: he was back running hedge funds at GLG a year later.
Why MiFID is no alternative to passporting for the City of London post-Brexit: “Even if the UK were granted equivalent status, bankers worry that access could be rescinded with four weeks’ notice. That makes the arrangement too insecure to be of use, unless it is underpinned with a specific treaty (unlikely if there is no UK compromise on immigration).” (Financial Times)
How Brexit changed everything: “The ‘low for long’ interest rate outlook now looks more like ‘low forever’ — an outcome that has unleashed a powerful renewed search for yield”. (Financial Times)
Goldman Sachs lost 34% of revenue since 2010. Citigroup -26%. BofA -35%. (Twitter)
James Gorman to Morgan Stanley staff, on Brexit: “Everybody cool your jets, just settle down … nothing precipitous is about to happen.” (Reuters)
Morgan Stanley’s RoE is moving in the wrong direction: The bank’s return on equity was 8.3% in the second quarter, better than the first quarter but below the 9% of last year and the 9% to 11% range it hopes to hit by next year. (WSJ)
‘The essential allegations here are that the HSBC traders convinced a client to give them an inefficient order, and then executed it inefficiently, in a way that made a lot of money for HSBC and cost the client a similar amount of money. But that is the nature of trading.’ (Bloomberg)
“I stumble upon students ‘with excellent grades. They say they want to be consultants. Really, they just want money.” (eFinancialCareers.de)
Frankfurt has a resident nudist, ‘naked George.’ “I sometimes see him at the dentist.” (Guardian)
Causes of air rage: ‘People aware of their higher status tend to be more selfish, entitled, and scornful, creating a psychological mindset that can set the stage for antisocial behavior. ‘ (HBSWK)
I am a banker, my wife, 34, has a BA in history and a masters in teaching. She does not want to work but income from her would be welcome. (Financial Times)
Jeremy Corbyn urges workers to cease when it gets too hot. (Mirror)