It is a day of unexpected events. Firstly, UBS - which was said to be paying 30% to 50% below market rates to hire senior M&A bankers this time last year, has suddenly sucked up someone big not long before bonus time. Secondly, Morgan Stanley, which has become synonymous with low pay and which officially awards its London staff half the amount Goldman Sachs does, has suggested it will be paying up this year. And thirdly, someone has pointed out that becoming partner at Goldman Sachs can be detrimental to your career.
UBS has gone out and recruited Laurent Bouvier from Credit Suisse to head its global industrials group, based in London. As far as we know, Bouvier was very happy at Credit Suisse. Given that it's getting close to bonus time, this suggests that UBS must have offered him a little (or big) inducement to leave. James Gorman, chief executive of Morgan Stanley has proclaimed that the bank will be paying "competitively" after turning itself around, or that senior Morgan Stanley managers at least will be rewarded for all their hard work - "God Bless them, they deserve all that comes from that success," said Gorman, fondly. And one Goldman partner told the Wall Street Journal that being tapped to join the 1.6% is nothing special - all that happens is that your job becomes more pressurized. 'A Goldman career can enter its most vulnerable stage in the year or so after the promotion,' notes the Journal, 'during that time, the bright spotlight can lead senior executives to conclude they made the wrong call.'
Standard Chartered shall be making redundancies. It wants to cut $100m from its wholesale business and $100m from its support functions. Headcount cuts are part of its strategy. (Financial Times)
RBS said it would only be scaling down its U.S. mortgage bond trading business. Actually, it's closing it altogether. (Bloomberg)
The FX manipulators weren't that successful. And Citi's fine was five times higher than the money its manipulators made. (Bloomberg)
Banks’ managements were unable to rein in the traders even when they knew the regulators were on the hunt. (Financial Times)
This was Goldman's second smallest partner pool since it went public in 1999. Non-revenue-producing executives in departments like legal and risk management accounted for 12 new partners, up from eight in 2012. (Wall Street Journal)
One of Goldman's new partners is the global head of compliance technology. (Wall Street Journal)
There are managing directors at JPMorgan on less than $300k. (Business Insider)
'1 dream, 1 team' - cartel names conjured by FX traders reminiscent of Britain's Got Talent. (Bloomberg)
Men who say they're members of parent teacher associations on their CVs get more interviews and higher salaries. Women who say the same thing get the opposite. (NY Times)
Some helpful and different advice about to succeeding in a job interview. (Harvard Business Review)
A lot of PhD students are lazy. (Economist)