Barclays has a few more bats to bash its investment bankers with. The UK bank has lost a five year court battle regarding a credit derivatives transaction with a US hedge fund, and may have to pay a $700m fine. It's also trawling through its foreign exchange records to see if it's implicated in the investigation into currency manipulation. And Barclays' interim results, released today, reveal a 12% decline in profits at the investment bank in the first nine months of 2013 and a 53% decline in profit in the third quarter.
None of this is good news for Barclays’ investment bankers, who are already labouring beneath a cloud of notoriety and unpopularity within the Barclays empire. As we reported a few weeks ago, the £290m in LIBOR fines levied against Barclays’ investment bank have been seized upon by new management as a reason to curb pay and to redefine the entire culture of the investment banking arm.
The newest $700m fine includes $300m in returned collateral and as much as $300-$400m in interest and legal charges, with the latter components yet to be finalized. Barclays is disputing the ruling. The bank has $4bn in litigation reserves, but a $400m charge could yet impact bonuses. Today's results suggest Barclays' is already cutting pay: accrued compensation in the investment bank fell 4% year-on-year in the first nine months of 2013. Notably, Barclays cost/income ratio during this period was 65% - at the upper end of its self-imposed range.
Separately, Abigail, a recruiter in Goldman Sachs’ New York office, has appeared on the bank's website offering advice on how to get ahead in a Goldman interview. Abigail’s most interesting insight regards the art of following-up after your encounter with a member of Goldman staff. She advises against sending generic emails, instead advocating that you ‘thank the interviewer for their time and also highlight something unique’ that you ‘took away’ from the conversation.
Headcount at Standard Chartered has fallen by 2,000 over the past year, even though the bank has hired 2,000 people to work in compliance and legal functions over the past three years. (IB Times)
Thomson Reuters is cutting another 3,000 people in its financial risk and control units by 2015, plus 140 journalists. (WSJ)
JPMorgan’s $13bn settlement may be unraveling. (Reuters)
RBS is reviewing its currency trading practices in the wake of the investigation into the FX market. (Bloomberg)
UBS and Deutsche Bank are cooperating with regulators looking into FX fixing. Credit Suisse is in the clear. (Reuters)
Matt Gardiner, a senior currencies trader at Standard Chartered has been placed on leave inexplicably one month after joining from UBS. (WSJ)
Sally Dawson, a high yield saleswoman at Deutsche bank, died yesterday aged 39. (HereisTheCity)
UK banking is a highly interconnected machine whose principal activity is leveraging up existing property assets. (Financial Times)
Women in the City mostly work in HR jobs. (The Guardian)
Another sexist memo from a law firm. (AboveTheLaw)
First impressions of life at Goldman Sachs. (InterviewBull)
Banker chat – ‘Don’t worry mates, there are bigger crooks in the market than us.’ (Twitter)
Viagra coffee seized in Thailand. (Khaosod)
You can buy a condo with bitcoins in Shanghai. (Marc)
If HS2 goes ahead, you’ll be able to commute into London from almost anywhere. (FaisalIslam)