When the financial crisis hit, every bank in the world took some share of the punishment. Still, some came out smelling better than others. Unlike many U.S. banks, which were leveraged up to their eyeballs and forced to accept federal bailouts, Canadian banks didn’t have near the exposure of say a Bank of America or a Citigroup.
Ironically, the economic crisis actually provided opportunities for Canadian banks, particularly RBC, which has been rapidly expanding its investment bank in the U.S. The Financial Times took a comprehensive look at the bank’s recent success and growth plans.
Through three quarters, RBC’s investment bank has earned more than $850 million in fees in the U.S. alone, more than tripling its pre-recession output and its overall market share. That eclipses the fees RBC generated at home in Canada.
How’d they do it? Aggressive hiring, for one. The Canadian firm has brought on 19 managing directors within its investment bank during the first half of the year while losing only five, according to the report. At U.S. competitors, those numbers are likely flipped.
The other good news for job seekers is that, unlike some other banks, RBC isn’t a fan of poaching full M&A teams from competitors. Rather, they prefer to make individual hires in an effort to keep their culture intact.
And it’s not just hiring in the U.S. RBC has been equally active in Europe so far this year. It’s been hiring equity research and M&A professionals as well as selectively bringing on fixed income sales and trading execs.
Clearly, the market has never been better for experienced compliance personnel. But what if your resume is missing that all-important “experience” aspect?
Deutsche Bank has been pushing its “Unofficial Guide to Banking,” its informal take on banking careers that contains plenty of illuminative points for anyone wondering how Deutsche (unofficially) sees the world.
Pimco may be losing assets following the departure of founder Bill Gross, but it may now be a better place to work. “We’re shifting from a founder-driven management structure to one that, in short, emphasizes teamwork,” said new group chief investment officer Daniel Ivascyn. Plus, he promised making juniors feel more comfortable.
Fat finger errors happen with electronic trading, but never quite like this. A Japanese trader’s error resulted in $617 billion in orders needing to be cancelled. It may be the largest fat finger mistake ever.
In a bit of a surprise, Bank of America’s board named Chief Executive Brian Moynihan as its new chairman. On Wall Street, only Jamie Dimon and Lloyd Blankfein hold both titles. Moynihan now joins that group.
Germany’s Commerzbank is cutting as many as 70 jobs within its fixed income division. And that might not be all. New York regulators want several Commerzbank employees fired as part of any potential settlement over its dealings with sanctioned countries.
It’s official. Goldman Sachs and 13 other banks are launching a new chat service called Symphony Communication Services.
Buzz Around the Office
Japan has come out with the latest must-own item. A wearable suit that doubles as a futon mattress.
Quote of the Day: “I think what probably John and Joe would describe is, there’s a limited number of seats [at private equity and hedge funds],” Citi CEO Michael Corbat to NYU students on why they should still want to work in banking. Not terribly inspiring.