So you work for Citi in London? So you’re hoping to get promoted and maybe one day achieve a corner office in Citi’s Canary Wharf edifice? Think….again. Financial News knows how many people Citi just promoted to managing director (MD) in London for 2014, and it was not very many at all.
Financial News reports that Citi elevated just 9 people across the whole of Europe, the Middle East and Africa (EMEA) to managing director rank last month. Three of those promoted were in Nigeria, Turkey and Dubai, so a maximum of six were in Canary Wharf. That’s not a lot when you consider that Citi’s global markets business in the UK has 1,567 people registered with the Financial Conduct Authority. Nor are Citi’s bonuses likely to be up to much – cuts of between 5% and 10% are expected. So, why should mid-ranking bankers stick around at Citi’s UK business now? – It probably helps that Citi is known for paying a high proportion of its bonuses in cash.
Separately, if you thought that senior Goldman Sachs executives in Europe were omniscient and infallible genii, you were wrong. The Wall Street Journal reports that no fewer than three committees of senior bankers at Goldman Sachs assessed the $835m loan the bank made to Espirito Santo in July, one month before the Portuguese bank was bailed out by the Portuguese government. Goldman’s senior staff reportedly appraised the transaction’s credit risk and potential to damage the bank’s reputation. It still went ahead.
The share of revenue Goldman set aside to pay employees has steadily declined since the start of the financial crisis, falling to 36.8 percent in 2014 from 48 percent in 2008. (Businessweek)
Aviva is cutting 1,500 jobs, but Goldman Sachs, Barclays, RBC Capital Markets, JPMorgan Cazenove, Morgan Stanley and Robey Warshaw stand to make a combined £45m in fees from its purchase of Friends Life. (Financial Times)
J.P, Morgan just hired an MD who’d worked at Goldman Sachs for 24 years. He’s becoming head of global equities technology in the bank’s asset management business. (The Trade News)
Last year, Credit Suisse made several redundancies in emerging markets. Now it’s appointed a new global emerging markets head. (Bloomberg)
Credit Suisse confesses that its profits may be hurt by the appreciation of the Swiss franc against he euro. (Bloomberg)
Deutsche Bank just cut six credit salespeople in the US. (Bloomberg)
What the Swiss franc shock says about risk models: they don’t work, still. (VoxEU)
How people make decisions in organizations: ‘In a corporate decision, the decision maker is playing with the house’s money, not his or her own, so the financial and/or opportunity cost is almost irrelevant. The risk that looms largest is not about losing money; it’s about losing your job or shedding prestige.‘ (HBR)
HSBC banker says being gay has been a big career boon. (Evening Standard)
The lying down desk is upon us. (CityAm)