Investment banks have got a problem, and they know it. Their problem is that they really like to hire people from elite universities with elite extracurricular activities on their résumés, in whom their current staff can see their younger selves. – But these aren’t necessarily the best people for banks to be hiring. Their best recruits may actually be at third tier universities working part time in places like bubble tea shops.
Students at Baruch College, a public college in City University of New York are a case in point. While banks are out there flaunting their wares to elite students at Wharton, Harvard and MIT, the Wall Street Journal points out that it’s Baruch students who inconveniently keep winning at trading games. For example, last year, Baruch won first, second and third place at MIT’s annual trading face-off. Three months ago, they also won the Rotman International Trading Competition, beating students from Columbia and Carnegie Mellon.
As one Baruch professor points out, his college doesn’t attract typical finance types. – He says Baruch students are more likely to have spent their holidays selling bubble tea than completing internships. However, Baruch has an outstanding finance club which offers its students excellent training for trading careers. Some banks appear to have spotted this secret cache of talent: Goldman Sachs has 300 Baruch alumni currently listed in LinkedIn; ‘white shoe’ Morgan Stanley only has 30+. That’s a shame. Banks that only hire elites are missing out.
Separately, RBC has already hired 10 senior bankers in the U.S. this year. That’s impressive, but less than the 14 it hired by this time last year. The Canadian bank is fussy: “You can’t attain perfection. But I am always amazed by the lack of diligence that some other firms have when it comes to people. We do our diligence,” Blair Fleming, head of RBC Capital Markets in the U.S. tells Business Insider.
Not all jobs at Goldman Sachs are for ‘engineers’ and M&A bankers and sales-traders. The firm is also an employer of call center (centre if you’re in the UK) staff working for its Marcus retail banking brand. It seems there are up to 170 people in Goldman’s call center in Salt Lake City. (Salt Lake Tribune)
How to proceed when you lose your job at J.P. Morgan and earn a notorious nickname: learn to code and set up a website exonerating yourself. This is what ‘London Whale’ Bruno Iksil is busy with. (Financial News)
J.P. Morgan’s taken out a lease on a new Dublin office that will double its staff in Ireland to 1,000. (Guardian)
Clearing houses could stay in London after Brexit if they were regulated by the ECB. This kind of arrangement already exists with the U.S. (Bloomberg)
Oliver Wyman thinks Brexit will reduce banks return on equity by 5% in Europe. (Financial Times)
An ex-KKR director just set up a new investment firm called Moonlake Capital in London. (Financial News)
“I was unable to do any work, I had a Transatlantic flight.” (Bloomberg)
Long distance whispering is a thing: You can use ultrasound to beam your words to someone 30m away without anyone hearing what you said. (New Scientist)