Goldman Sachs is losing people. Yoel Zaoui is the latest, but Yoel Zaoui is not the first.
There are various reasons why Goldman is leaching senior staff. Most notably, its senior staff have made a lot of money and probably don’t need to work. The FT also points out that 2012 is one of the alternate years in which Goldman makes new partners, and that when it makes new partners it tends to edge some of its existing partners out. Goldman apparently likes partners to be no more than 1.7%-1.8% of its total headcount.
However, the out-flux of very senior people need not be a disaster for people who escape the vortex. International Financing Review points out that Goldman has promoted numerous people over the past year. In a post-Blankfein era, these will be the big names of the future. They include:
Isabelle Ealet, previously global head of commodities, now one of three global heads of the securities division.
Ashok Varadhan, new head of macro trading for emerging markets.
Jeffrey Verschleiser, new global head of mortgage trading.
Justin Gmelich, new global head of credit trading.
Paul Russo, Michael Daffey, and Martin Chavez, new co-COOs of equities.
Enrico Gaglioti, new global head of equities sales.
John Willian, new global head of securities services, futures, and clearing.
Nick Burgin, new global head of G10 foreign exchange trading.
James Paradise, previously co-head of prime brokerage in London, now co-head of Asia-Pacific securities.
Kostas Pantazopoulos, global head of interest-rate trading and now also head of Asia ex-Japan macro trading.
And yet, as IFR points out, there’s no indication that Lloyd Blankfein is going anywhere soon – despite various rumours to the contrary. For all those wondering about Blankfein’s longevity and success, the blog Stumbling and Mumbling makes some interesting points about the prevalence of bald men in banking. It points out that hairless men have higher testosterone; they are better risk takers; they are more status seeking. Less promisingly, they have poor social skills and may be prone to rowdy behaviours.
"Instead of having a Maradona and ten weak players, he (Morgan Stanley's global co-head of investment banking Franck Petitgas) thought that it was a better bet in the long term to have a team of 11 equally good players," said a Morgan Stanley banker, who asked not to be named. (Reuters)
This new Brazilian investment bank plans to hire a lot more people. (Bloomberg)
Right now, it only has offices in Brazil. (BancoModal)
How to get hired by a fund of hedge funds: join an investment consulting firm in the hedge fund advisory practice. (Financial News)
London hedge fund relocates most staff to Monaco. (Finalternatives)
Sergei Aleynikov stole purely intangible property embodied in a purely intangible format. "We decline to stretch or update statutory words of plain and ordinary meaning in order to better accommodate the digital age." (ComputerWorld)
Bob Diamond’s contract actually states that: "Barclays will consult with you in good faith and give consideration as to whether and in which ways Barclays can hold you harmless against any incremental tax liability incurred as a result of your return to the UK to perform your assignment." (Guardian)
Blackrock’s new trading platform could prove detrimental to fixed income trading jobs in banks. (WSJ)
Lose your job, become a miner in Australia. (Bloomberg)
Issues you will face in Dubai: Should, or should not, your maid be in uniform? (Telegraph)
Must one do things as well as one possibly can? If you don’t want to, is that a bug or a feature? And, beyond a certain age, does it matter? (Emmanuel Derman)