First they came for the structured credit traders. Now they’re coming for the equities traders. Next they’ll be coming for the corporate finance professionals.
Such is the message in the latest round of redundancies and revenues warnings from US investment banks. Fresh from laying off 1,200 people, of whom 470 were in its fixed income division, Morgan Stanley is casting its net further afield. – Financial News reports that many of Morgan Stanley’s most recent exits have been from the bank’s equity derivatives business.
Morgan Stanley isn’t the only US bank trimming equities professionals. Bloomberg reports that Bank of America Merrill Lynch (BAML) has cut Arnaud Droitcourt, head of equity trading in Asia Pacific, as part of its cull of 150 global markets employees.
Unless things change soon, corporate financiers could be next in line for the chop. Citigroup CFO John Gerspach said yesterday that the bank’s combined equities and fixed income trading revenues fell 15% in the first quarter of 2016 compared to the same quarter one year earlier. This was nothing compared to the decline in IBD, however: investment banking revenues were down 25% year-on-year in the first quarter, said Gerspach. Citi is preparing to make 2,000 people redundant in 2016. IBD professionals at the bank should probably start feeling afraid.
Separately, you may not work for Goldman Sachs and provide a reference for someone without first having that letter of reference authorized by the firm. Reuters reports that Tim Leissner, the former Goldman chairman of South East Asia who’s currently embroiled in “judicial investigations”, was forced to resign from the firm after an illicit reference came to light.
Wells Fargo plans to recruit people for credit default swaps. (Bloomberg)
The new deputy Barclays chairman thinks bonuses should be deferred for up to a decade. (Guardian)
Barclays plans to sublet some of its offices at Canary Wharf. (Bloomberg)
Barclays has the highest level of pay scrutiny in the UK. (Twitter)
American investment banks had investment banking and securities revenues of $138.5bn and profits of $33.5bn last year. European investment banks had revenues of $60.1bn and profits of $4.2bn. Credit Suisse has scaled back its hiring plans, but will still be “selectively” hiring. (Financial Times)
Every risk manager’s worst fear: “What I worry about is a big team from the FCA turning up at my offices with 30 guys to go through the minutes of every meeting to second guess a decision I made a few years ago.” (Financial Times).
Why M&A bankers should want General Electric as a client. (Bloomberg)
Sergio Ermotti says a vote to leave the European Union wouldn’t necessarily be disastrous for UBS jobs in London. (Reuters)
Jailed LIBOR trader Tom Hayes has been denied the right to appeal against his sentence. He now faces the prospect of having £3.8m of his assets clawed back under the proceeds of crime act. (Reuters)
Whatever Trump’s annual income is, it’s less than $500k. (Crains)
Why you will be penalized for interview anxiety,and what to do about it. (BPS)