Most banks have made a few redundancies in recent years. Compared to Russian bank Renaissance Capital, however, they have merely been tinkering around the edges. As Euromoney pointed out yesterday, RenCap has laid off 50% of its staff since early 2012 and now employs 550 people compared to 1,200 at its peak nearly two years ago. In total, RenCap now employs only 60 ‘front office investment banking staff,’ of whom half are focused entirely on Russia.
Unsurprisingly, RenCap’s extreme approach to layoffs has worked wonders for profits. The bank says its operating profit in the first nine months of 2013 was a, “major achievement.”
Separately, The Evening Standard yesterday reported on the tragic death of Tomas Dusek, a 37 year old father of two who died whilst working for StormHarbour Securities in June 2012. Dusek was one of 14 passengers on a helicopter which crashed into a mountain whilst surveying a river. Dusek’s wife has launched a case against Stormharbour, accusing the company of failing to ensure her husband’s safety and to ensure a safe flight operator was selected.
Nomura wants to hire 20 M&A bankers in the US. (Bloomberg)
Hedge funds need at least $300m in assets just to break even, and over $1.5bn in assets to start making decent profits. (FinAlternatives)
It’s 40% cheaper to run a hedge fund in Asia, partly because people there are paid less. (Bloomberg)
Bonuses at Canadian banks are at their lowest level since 2010 this year. (Bloomberg)
Credit Suisse has moved Howard Chen, its star investment banking analyst, into M&A. (DealBook)
Citigroup is hiring in commodities. (Bloomberg)
ABN AMRO wants to hire commodities staff in Asia. (Bloomberg)
39-year-old ex-Deutsche Bank in MD in Hong Kong ordered to pay the bank $3.7m after accepting bribes. (Financial Times)
I love recruitment because a fundamental driver in life for me is to help others. (The Undercover Recruiter)
Nepotism has a proud and prominent place in investment banking: In a business of relationships, you might as well hire people who were born with good relationships. The alternative of developing relationships through financial analyses and golf is slow and error-prone. (Bloomberg)
People who were observed choosing large coffees, pizzas, and smoothies were rated by others as having higher status. (Quartz)