Late Lunchtime Links: Citigroup is planning markets redundancies even though its FICC business is doing very well. Maybe it should cut in equities?

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As predicted by Morgan Stanley/Oliver Wyman and (to a lesser extent) JPMorgan, 2012 is turning out to be a good year for fixed income, currency and commodities bankers.

Today is the day of Citigroup’s Q1 results. As ever, reality is obfuscated by DVA changes, but when these are stripped out, Citi – like JPMorgan – didn’t have a bad time in FICC.

While JPMorgan’s FICC revenues fell 3% ex-DVA on Q111, Citigroup rose by an impressive 19% year-on-year. The bank attributed this to: “strong performance in rates and currencies across all products and regions,” as, “overall market conditions improved and client activity increased.”  Alternatively, it may have been linked to: the LTRO.

As we noted earlier, Citi has been engaged in a little upgrading in London. However, as Bloomberg points out, it’s also committed to cutting more than 1,000 jobs from its investment bank globally. Equities might be a good place to start: despite an overhaul of the business by Derek Bandeen and some serious building in London since 2008, Citi’s equities revenues fell 18% ex-DVA year on year in the first quarter.


Net income at JPMorgan’s investment bank was down nearly 33% on last year. (Financial Times)

Andrea Orcel has been poaching people from BofA for UBS. (Financial Times) 

A new media and internet-focused boutique, Lepe Partners, is being set up by one ofLondon’s ‘most established dealmakers.’ (Financial Times)

Lloyd Blankfein's total compensation for 2011 fell 35.5% to $12 million. (WSJ)

Marcus Agius is going to cut Bob Diamond's pay 75%. (The Times)

BarCap will pay Bob Diamond £600k this year, to offset his US tax liabilities. (Financial Times) 

A new legal case offers insights into what goes on in the secret sect that is Barclays’ structured tax business. (Document Cloud)

In Hong Kong: “It’s great being in such a dynamic city, where bankers are no longer pariahs and have never been pariahs. People ask what you do, you say you work in a bank, and they say, 'oh, that’s nice, what a great thing to do’. It makes a nice change.” (Telegraph) 

Switzerland is placing unspecified restrictions on hedge fund pay. (Financial Times) 

How to get a job at Bridgewater. (Businessweek)

Outbreak of strange itching bugs on tube trains at Morden. (CityAm) 

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