When future historians catalogue the rise and fall in the fortunes of that elite class of students who make it onto elite banks’ front office graduate training programmes, 2014 will be written as a wondrous time. This is the year that pay has been hiked, that hours have been slashed (theoretically) and that now – at Citi at least – promotions have been brought forwards.
Dealbreaker reports that Citi has belatedly followed banks like Goldman Sachs, JPMorgan and Bank of America in hiking first year analyst pay to $85k a year. Its US rivals made their analyst pay increases in the heat of the summer, when junior hiring was particularly feverish. As if to compensate for its tardiness, Citi is also said to be truncating the analyst programme in IBD. - It’s offering to promote first year analysts to second year analysts after just six months (with an attendant increase in pay, to $90k). And then it’s automatically making its analysts into associates after just two years instead of the standard three. Good news all round – except for the Citi analysts who miss out on the all-important financial modelling experience which will provides the foundation to an illustrious banking career.
Separately, if you work more than 50 hours a week, you’re wasting your time. The Economist reports on research from Stanford University which indicates that marginal productivity plummets beyond the 50 hour mark. It observes that, ‘[efc_twitter text="output at 70 hours of work differed little from output at 56 hours. That extra 14 hours was a waste of time"].’
JPMorgan says trading isn’t going too well there either. (Bloomberg)
The falling oil price could cause credit problems for energy companies, which account for roughly 16% of the high yield market. Goldman Sachs has been overly dependent on high yield in 2014 and could therefore suffer next year. (WSJ)
Goldman Sachs has advised on $1 trillion of deals this year. The last time any bank did that was 2007. (WSJ)
UBS is so keen to grow its M&A business under William Vereker, that it couldn’t wait until bonuses have been paid in February and just poached Martin Henrichs from Credit Suisse to be its head of healthcare banking in EMEA. (Financial News)
RBS won’t be trading fixed income products in Japan any more. 170 people are losing their jobs as a result. (Bloomberg)
FX traders come across cunning method of avoiding personal fines. (Bloomberg)
The FCA does clawbacks too. (WSJ)
Morgan Stanley has hired 100s of people to entice US clients to take out dubious loans against their brokerage accounts. (Fortune)
So much for JPMorgan’s fortress balance sheet. (Financial Times)
KPMG needs a lot of big data professionals. It’s midway through a five-year $1bn global investment programme aimed at developing new data and analytics solutions for clients. (Financial Times)
The 10 best (US) schools if you want to work for a hedge fund. (FinAlternatives)