In a piece today, Lex argues that two years in banking is enough for anyone. During those first two years, it says that young bankers learn about, ‘spreadsheets, the nuts and bolts of business models, how to work under extreme pressure with both the guy in the copy centre and the client CEO.’ Thereafter, they’re equipped to do anything (start a company, become an investor, become a journalist). After two years, Lex says young bankers who continue working 80 hour weeks in banks for £150k a year, do so out of inertia: “Why let all those skills go to waste by staying at a dreary bank, when you are in your 20s, and the world is your oyster?”
Separately, recruitment firm Robert Half has provided Bloomberg with some figures on risk salaries in different financial centres globally. It says a senior risk manager in Singapore is paid as much as $201k annually, compared with $232k in Hong Kong, $281k in London and $324k in New York.
Singapore sounds unappealing, until the country’s low income tax rate is taken into account. Our research indicates that after income tax, the risk officer will take home $225k in Hong Kong, $222k in New York, $181k in Singapore, and just $153k in London.
Ex-banker who became journalist says people in banking are interested in money, “usually because they grew up without much.” (Financial Times)
Ex-senior trader at Deutsche bank is rising star in the Conservative Party. (Bloomberg)
Standard Bank is in talks to sell its global markets business in London. (Bloomberg)
JP Morgan is making a push to hire more humanities students this year than it has in previous years. (Financial News)
U.S. IPO fees are at their highest level since the dotcom bubble of 2000. (Financial Times)
PricewaterhouseCoopers has started an equity markets advisory practice. (Financial News)
JPMorgan, Credit Suisse, UBS, Barclays and Citi are thinking of blocking chatrooms used by traders and replacing them with one on one telephone calls or emails. (WSJ)
William Harrington, a former Moody’s executive, says banks are using deluded methods to value asset backed securities. (Financial Times)
Until 20 years ago, Stuart Gulliver, chief executive of HSBC, says the bank only hired women into junior roles. (Financial Times)
Children of families who earn more than £100k are more than twice as likely to suffer from mental health problems. (Sunday Times)