Lunchtime Links: JPMorgan’s big new hire goes to show where the big new jobs are – liquidity and cost management

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Grim reaper

Never trust a bank when it says a senior staff member is departing to ‘pursue opportunities outside investment banking.’ Credit Suisse purportedly said this last month about Marc Granetz, its chairman of investment banking. Now Granetz has turned up at JPMorgan.

In his new role, Bloomberg reports Granetz will be part of a, “new unit for global finance initiatives.”

What will this new unit do exactly? At this point, everything becomes a little more opaque. Granetz’s role appears to be internal rather than client-facing and will apparently involve working with executives across JPMorgan on, “critical issues related to finance and strategy.”  But what are these critical issues? Apparently they include: a “liquidity project” and “expense management.”

That JPMorgan has set up a whole new unit to deal with such things is testimony to their growing importance. Others may be losing their jobs, but liquidity experts and cost cutters can clearly expect continued employment in future.

In other news:

Jonathan Rowland, who moved to a senior role in investment banking at Citigroup last year after being replaced as head of its financial entrepreneurs group, has left the bank to pursue other interests. (Financial News)

Donald R. Mullen Jr., who runs the global credit and mortgage business at Goldman Sachs, is leaving after 11 years. (Businessweek)

Data shows that the average remuneration for 1,265 code staff in the City was £1.8m in 2010. (Guardian) 

David Cameron fears that Stephen Hester, RBS chief executive, could be driven out of his job if he is stripped of a bonus worth more than £1m. (Financial Times) 

A large swathe of the City has grown tired of pandering to the public demand for pay restraint. Friends of Hester claim that the RBS boss is part of that fraternity. (Sunday Times) 

Investment bankers at Royal Bank of Scotland are to share a £2.5bn pay pot, an average of nearly £140k each. (Sunday Times) 

“If it was left up to me, and probably up to you, and probably up to many people watching this program, we wouldn’t have any bonuses, particularly in the state-owned banks while they are still being repaired,” Clegg said. (Bloomberg) 

French Socialist Party candidate François Hollande said on Sunday that some of his first actions, were he to win the presidential election, would be to shackle the world of finance—which he described as his "main foe"—and raise taxes on the rich. (Wall Street Journal) 

France and Germany are going to call for a relaxation of Basel III. The UK isn’t. (Financial Times)

French bank stocks are soaring higher on claims that Francewants to relax Basel III; SocGen is up 30% year to date. (Business Insider) 

Morgan Stanley has appointed a German, Klaus Froehlich, who moved toDubaiin 2009, as one of its co-heads of Middle East investment banking. (BusinessWeek) 

More than two-thirds of hedge funds are below their high-water marks and will not be paying particularly well. (Financial Times) 

Jesse Bhattal’s urge to buy lots of Italian government bonds didn’t help his position at Nomura, nor did the Wall Street’s Journal’s accidental publication of notes suggesting he’d told their journalist about the bank’s big cost cutting plan. (Reuters) 

William Mulrow, a senior managing director at the Blackstone Group, put on raggedy clothes to play the part of an Occupy protester. (Dealbook) 

Starkly put, what is a few billion dollars of excess compensation, here and there, if it enables the growth and prosperity of trillions of dollars of global economic activity? (Epicurean Dealmaker) 

Many banks in Europe are still heavily overstaffed and resourced for the heady days when Europe was a growth market. (Financial News) 

A “cognitive elite”, has developed an hereditary stranglehold over the top professions and management positions. (Telegraph) 

5,000 jobs being created at Asda. (Evening Standard) 

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