Senior staff at Deutsche Bank are not happy. As we reported last month, the German bank has allegedly implemented something akin to an “MD tax.” The principal of this is that once you reach MD you should “take one for the team” in accepting a lower bonus, and – possibly, lower overall pay.
Bloomberg reports that Deutsche faces a “brain drain” as a result. The bank was supposed to be hiking salaries to compensate for the fall in bonuses, but any salary increases don’t appear to have been ubiquitous: only “some” employees have benefited. One Deutsche insider tells Bloomberg the bank’s unhappy staff are, “applying for jobs at banks they previously wouldn’t have considered.” Veteran Deutsche Banks are also said to be, “leaving the office early because they no longer have the same incentive to work harder.”
Separately, Financial News suggests successful women in banking need one thing: a househusband. During its survey on women in finance, one woman said success requires three things: not admitting to having children, taking minimal maternity leave (if birth becomes unavoidable), and getting a house husband. “If your husband earns more than you, don’t let your work think he does,” she advised. A stay-at-home spouse with a small side business in interior design is usually a boon for male bankers too.
Deutsche Bank head of global foreign exchange, Ahmet Arinc, is on leave. (Bloomberg)
Deutsche Bank’s new head of asset management is on indefinite medical leave. (Reuters)
James Gorman: “The first quarter was characterized by challenging market conditions and muted client activity. While we see some signs of market recovery, global uncertainties continue to weigh on investor activity.” (Bloomberg)
Wealth management is supposed to be Morgan Stanley’s future. Revenues there fell 4%. (Bloomberg)
Morgan Stanley’s FICC revenues of $873m were up from the fourth quarter’s miserable total of $460m, and the comparator quarter at the bank (Q12015) was unsustainably good, at more than $2bn. (Financial Times)
Morgan Stanley cut 3% of its staff during the first quarter, and compensation-related expenses fell 19% (y-o-y), but the return on equity was still only 6.2%, versus a target of 11% by next year. (Reuters)
Ten traders just left Goldman Sachs. (The Trade News)
BNP Paribas has hired a managing director from Barclays to join its insurance debt capital markets team. (Reuters)
Frank Drouet is the new head of global markets at SocGen. (Financial News)
Eric Bandholz, a former financial adviser for Merrill Lynch, who says he faced anti-beard sentiment for years. (Dealbreaker)
Tidjane Thiam turns out for Swiss parade in piratical hat. (Blick)
Angie Collins and Beth Hanson settled on donor 9623, who supposedly had an IQ of 160. He turned out to be a schizophrenic college dropout who’d spent time in prison. (Mirror)