If you want a junior job in banking, it will be helpful if you have several things on your side. They include: excellent academics, pertinent work experience, influential relatives with top finance connections, and a surname name which resonates with senior bankers.
Frederick Mocatta, a 26 year old banker who’s just joined Ian Hannam’s new boutique advisory empire (two firms Hannam & Partners and Hannam & Partners Advisory) could be indicative of the enduring heft of the latter. Hannam is a veteran mining banker and Financial News points out that Mocatta (full name, (Frederick Edward Elgin Mocatta) is a descendant of the founders of London bullion bank Mocatta & Goldsmid, which merged with Hambros Bank in the 1950. Before joining Hannam, Mocatta reportedly spent five months at Merlin Partners, a boutique mostly staffed by ex-J.P. Morgan bankers. Eton-educated Mocatta may well have achieved his positions entirely on his own merits. Then again, family connections can be helpful - especially in the chummy arena of boutique M&A advisors. Ironically, Hanna, himself grew up in the London suburb of Bermondsey without influential connections of any kind.
Separately, Barclays bankers may be feeling squeezed, but they’re rich compared to the poor souls at the British Treasury. People at the Treasury like to consider themselves in the top 25% of performers, says the Financial Times. Unfortunately, therefore, Treasury staff are typically paid less than recent graduate entrants to investment banks (like Mocatta). Median salaries at the Treasury are just £37k and this year bonuses there have been reduced by 27% to an average of £1.5k per person. Unsurprisingly, the Treasury has a problem with staff retention, with pay cited as the biggest source of dissatisfaction.
UBS now gets 75% of its investment banking revenues from equities sales and trading and underwriting. Most of its peers get 50% of their revenues from FICC. (FastFT)
Barclays’ results mark the end of Bob Diamond’s dream to create a top investment bank. (Telegraph)
Crispin Odey says Barclays’ rights issue was the right thing from its ‘dull utilitarian management.’ (Wall Street Journal)
Industrial & Commercial Bank of China (ICBC) has reignited discussions about acquiring the UK-based commodities and foreign exchange trading divisions of Standard Bank. (Sky)
A Bahraini banker has been shot by a contract killer in Malaysia. (Bloomberg)
Royal Bank of Scotland could eventually face upwards of £4.36bn in claims brought by thousands of investors who claim they were misled into investing in its £12bn rights issue just before the bank’s near-collapse in 2008. (Financial Times)
Last month, analysts at Berenberg estimated that Deutsche Bank needs another €16bn of capital. (Financial Times)
JPMorgan just followed the rules, simply and literally, but they followed them to places they were not meant to go. (Dealbreaker)