The consultants have consulted. McKinsey & Co’s report on the Bank of England has been made partially public. Summoned by former Goldman Sachs banker Mark Carney when he took over as governor of the Bank of England, McKinsey ran its standard ‘Organizational Health Index’ survey on 2,266 people at the Bank, and found it lacking along several dimensions.
Bloomberg reports that 89% of the Bank of England’s staff responded negatively when asked about financial incentives at the Bank. In other words, the pay is not good. Their descriptors for their employer included words like, ‘hierarchical,’ ‘internal politics,’ and ‘slow moving.’ Only 22% of employees said they felt involved in decision making. Only 21% said they thought external ideas were sufficiently taken into account. Only 27% thought the Bank’s management were doing a good job.
There are some plus points to working for the Bank of England, however. As well as the £100k summer party with a bouncy castle, you get a warm moral glow. McKinsey found that Bank staff viewed their employer as having a, “noble purpose,” and “being of service to others.” Overall, it also ranked better than most public sector organisations in the UK – which may explain why government departments like the British Treasury have such problems retaining their people.
Separately, it turns out that Zar Amrolia, Deutsche’s until-recently-co-head of fixed income, currencies and commodities isn’t leaving the bank after all. No. He’s just moving into technology. Bloomberg says that Amrolia will now be in charge of developing Deutsche Bank’s ‘digital technology’, reporting into head of sales and trading Colin Fan. Is that a demotion? Maybe not. Financial News points out that Deutsche’s FX business thrived under Amrolia and was widely seen as being at the forefront of tech developments across the industry. Fan is already said to have asked Amrolia to apply his FX systems knowledge across Deutsche’s fixed income trading business back in 2012. In his new role, FN says Amrolia will in fact be aiming to reduce the complexity of all Deutsche’s technology systems. Given the importance of technology to banks nowadays, that could even be construed as a promotion.
Andrew Bailey, the top banking supervisor at the Bank of England, says it’s not the Bank’s job to regulate financial services pay. (Telegraph)
This is shaping up to be the first year in which Brevan Howard’s Master Fund, run by Alan Howard himself, returns its first annual loss. (Bloomberg)
Another hedge fund set up by ex-Goldman traders is closing. (Bloomberg)
Despite Russian sanctions, VTB says it won’t be making any more headcount cuts – for the moment. It’s trying hard to generate business wherever it can. (Financial News)
UBS loses cases concerning the sale of derivatives to a German water company. Ex-banker involved judged to be, a “thoroughly dishonest man.” (Bloomberg)
Rabobank is cutting 20 jobs worldwide from its markets division. (Reuters)
Do these 10 things and you will be consistently likable. (Daily Muse)