Apart from working long hours and doing without sleep, how do you get ahead as a junior in banking? A new study suggests that if you're a man, you need to get out there and network with the successful people you went to university with. But if you're a woman you simply need to work - hard.
Fast Company reports upon the study, undertaken by an associate professor of finance at INSEAD and a visiting professor at MIT. Encompassing 1,815 (equity) analysts between 1993 and 2009, the academics looked at the extent to which alumni networks are a boon for careers. They found that alumni connections make a difference to men - but not to women. Specifically, male analysts who were rated by people with similar educational backgrounds were significantly more likely to be deemed "stars" and to receive all the attendant benefits of a high salary. By comparison, women received no 'network' benefits at all and were simply rated based upon their performance. "Women are evaluated in different ways," concluded the academics. - For female bankers, it's all about actual performance whereas for men it's about perceived potential.
Separately, the figures from the Wall Street Comptroller showing that Wall Street bonuses have risen to $172k need to be taken with a liberal shaking of salt. As William Wright, founder of think tank New Financial pointed out, the Comptroller said the figures only include this year's cash bonuses and deferrals from previous years. This year's deferrals weren't included. - So who knows what happened 2014 Wall Street pay really?
In 2014 Wall Street jobs increased for the first time last year since 2011 as the industry added 2,300 jobs. (Financial Times)
The average Wall Street Bonus in 1994 was $32.2k. In 2014 it was $172.9k. (ZeroHedge)
Citigroup’s traders and investment bankers have come roaring back. It's all about acquiring 'vast amounts' of derivatives. (NY Times)
Citigroup’s stress test pass was the best of the lot. (Bloomberg)
Bank of America needs to resubmit its spending plan in September due to "deficiencies" in its revenue modeling and internal controls. (USA Today)
Deutsche Bank, which took the stress test for the first time this year, was rejected for “numerous and significant deficiencies” across several areas of the capital planning process including the bank’s ability to identify risks. (WSJ)
A new prop trading firm which employees elite graduates from emerging market universities and pays them $1k a month is trouncing Western firms. (Financial Times)
In 1994, Tidjane Thiam turned down a job at Goldman Sachs. (DealBook)
Thiam could axe 2,900 jobs at Credit Suisse's investment bank. (Reuters)
Barclays is targeting 150 academic underachievers for apprenticeships in Liverpool. (Liverpool Echo)
‘This is at least the second time Barclays’ investment bank has “died” in the past 20 years.’ (Telegraph)
As people have contact with items of high quality, they begin to suffer from “the curse of discernment.” (The Atlantic)
How Jamie DImon discovered his tumour. (Vanity Fair)