As we’ve explained before, the financial services hiring market is in a state of stasis, partly because people have so much stock and banks won’t buy it out.
In the circumstances, someone suggesting stock should be even more deferred is not needed. This is what Andy Haldane, executive director for financial stability and a member of the Financial Policy Committee, has been suggesting, Specifically, Haldane told a Berlin conference yesterday both that bonuses should be deferred over 10 years and that clawbacks should apply over this time. He wants this to be orchestrated on an, “internationally coordinated basis.”
The European Parliament doesn’t need much encouragement. It’s already pushing variously for: bonuses to be restricted to 100% of salary, for total compensation to be no more than three times the head of government (David Cameron earns £142.5k), and for limits on the compensation differential between the highest and lowest paid employees in any bank.
If all of this sounds ominous, Brady Dougan’s pronouncement that the second quarter isn’t going well is of more immediate concern. After a reasonable first quarter, the resurgence of concerns about the European Union has the potential to derail revenues in Q2. Conditions in April dropped off from healthier first quarter activity levels, Dougan said, worryingly.
HSBC is cutting 2,000 jobs in the UK. This will cover retail banking, head office, and other functions. (Reuters)
Credit Suisse made a lot of redundancies in the US yesterday. (Dealbreaker)
"If you're looking for an endgame as to what will finally be a really durable solution for the entire region would be not just a common monetary policy but common regulatory policy when it comes to the banking sector and a common bond market." (BusinessInsider)
Nomura will report an increase in quarterly profit as gains from trading outweighed declines in investment banking, two people with knowledge of the matter said. (Bloomberg)
Knight Frank reports a 19% spike in online inquiries from France about homes in the most expensive areas of London in the first quarter. (The Times)
Bank of America Merrill Lynch has hired Alex Wilmot-Sitwell from UBS as president of Europe and emerging markets (ex-Asia), the exact position to which Andrea Orcel was due to be promoted before he defected to the Swiss bank last month. (Financial News)
Alliance Bernstein is shifting away from equities and into fixed income and its head of trading has left. (Financial News)
The Abu Dhabi Investment Authority is hiring people with private equity experience. (Bloomberg)
It may yet become illegal to advertise for graduates. (Telegraph)