The trend of nearshoring back office investment banking jobs appears to be picking up pace in the U.S. Goldman Sachs’ ‘Wall Street of the West’ office in Salt Lake City now employs nearly 1,800 people – a figure that has risen “exponentially” in the past few years.
Now it’s UBS’s turn to choose an obscure U.S. town for a new hiring drive – Nashville, Tennessee. The Swiss bank already as an office there, but intends to add a further 1,000 jobs related to its wealth management and investment banking operations in its shared services centre in the city. Some jobs will be filled by current UBS employees relocating to Nashville.
In case you’re wondering whether this is simply a cost-cutting exercise, UBS has said that it intends to pay more than the average wage in Nashville for the roles. The city ranks 174th in the country, with average wages of $40.7k (£26.2k), which is scarily similar to the sort of salaries being offered to back office workers in U.K. nearshore operational centres in places like Glasgow, Edinburgh and Birmingham.
Meanwhile, the scale of the probe into J.P. Morgan’s alleged hiring of princelings in order to gain favouritism for deals in China has increased. It now goes beyond China’s borders to include 200 staff across Asia and an internal spreadsheet has been found linking dozens of people to specific deals being pursued by the bank.
The SEC is looking for evidence showing that “these weren’t real jobs, that they were only there because their father or mother were important public officials,” Dan Hurson, a former U.S. prosecutor and SEC lawyer told Bloomberg.
Tom Hayes claims his actions over Libor rate fixing were known about by senior executives at Citigroup in Japan. Regulators are investigating whether this is also the case at other banks (Wall Street Journal)
Trade union demands an investigation into how so many City workers avoided paying the top rate of income tax on this year’s bonuses (Independent)
Barclays has hired two investment bankers to lead its metals and mining team including Paul Rawlinson in London (Reuters)
Josef Ackermann has resigned as chairman of Zurich Insurance, saying he felt pressure to take some responsibility for its CFO’s suicide (Financial Times)
Darren Winder, head of institutional client advisory at Oriel Securities, has left and may start his own firm (Financial News)
High staff costs are one thing that could push Singapore’s private banks to consolidate (Financial Times)
Hedge funders are infiltrating Burning Man (Dealbreaker)