Rory Cullinan’s unexpected departure from RBS looks like a good thing. Cullinan’s appointment as head of RBS’s corporate and institutional bank (CIB) back in February was widely seen as a prelude to swift and savage job cuts. As of yesterday, however, Cullinan has been erased from the RBS executive committee. Does this mean RBS’s investment bankers have a stay of execution? That all depends upon Mark Bailie and Chris Marks – the men who are replacing him.
Bailie, Marks, and Cullinan have their similarities. Like Cullinan, Bailie has a background in private equity. Also like Cullinan, Bailie and Marks have spent time in RBS’s bad bank. – Both men joined RBS’s non-core division in 2010 and were promoted to become co-heads in February 2015 when the previous CEO (Cullinan) moved to head RBS’s Capital Resolution Group.
Bailie and Marks are also distinct from their predecessor. Marks has a background in structured finance – he spent six years as a managing director in structured finance at Barclays Capital before moving to RBS to head structured finance in the non-core division in 2010. Most importantly, both men have spent a comparatively small proportion of their careers at RBS, – Whereas Cullinan’s entire banking career was spent at the British bank, Marks and Bailie have spent nine and six years working for Barclays respectively.
What happens next? Cullinan had a reputation for cutting fast and being easily bored. His departure from RBS was allegedly the result of a disagreement with RBS CEO Ross McEwan over the implementation of harsh job cuts at the investment bank . Under Bailie and Marks, we suspect that implementation will be slower and RBS’s investment bankers will keep their jobs for longer. On the other hand, the strategy is the same and Bailie and Marks have less loyalty to RBS’s investment bank than their predecessor. RBS’s investment banking employees may have had their execution stayed, but not for long.
Separately, Morgan Stanley is looking for ‘dozens’ of people to do one of the most difficult investment banking jobs in the world. The South China Morning Post reports that the US investment bank is hiring equity researchers and analysts to assemble reports on 200 of the 2,000 Chinese stocks which will soon be accessible to international investors. Many of the companies have never been covered before: “With these companies little is known about their management teams, or about their business models,” said Morgan Stanley’s co-chief executive in Asia Pacific, Gokul Laroia.
JP Morgan analysts think equities and FICC sales and trading revenues rose 9% in the first quarter while IBD revenues fell by 2%. (Bloomberg)
Top European and U.S. banks axed 59,000 jobs last year as they restructured and cut costs. (Reuters)
Barry Meyers, previously an executive director at JP Morgan, will be joining Barclays as a director to lead UK equity capital markets in July. (Financial News)
Bank of America Merrill Lynch has hired Marcus Hiseman from Morgan Stanleyas head of corporate debt capital markets for Europe, Middle East and Africa (EMEA). (Reuters)
You don’t want to work in private equity. (WSJ)
You don’t want to work in high frequency trading trading. (Bloomberg)
You don’t want to work for the ECB. (WSJ)
The new blog of Ben Bernanke. (Brookings)
The science of spending money on experiences, not things. (Fast Company)