Ever since the bulge bracket banking order was toppled by the banking crisis, it’s been less easy to determine what constitutes a top tier bank and what doesn’t. Is Bank of America a top tier bank? Is J.P. Morgan? How about Deutsche Bank or Citigroup or Credit Suisse?
Now two US academics have attempted to get to grips with the problem. Writing in Financial News, Roy Smith and Brad Hintz, finance professor and adjunct finance professor respectively at the NYU Stern School of Business, is return on equity. The higher the returns on a bank’s capital markets business, the greater its share price in relation to its book value. Successful banks today are therefore those which pursue a strategy which will produce reasonable returns in the medium term.
In Smith and Hintz’s chart below, the top banks to work for now are therefore in the A quadrant (Goldman Sachs and J.P. Morgan). The acceptable banks to work for are in the B quadrant (UBS, HSBC, Credit Suisse and Morgan Stanley). The banks in the C quadrant are in need of a strategic overhaul. Barclays looks particularly parlous here.
Separately, you can get to know UBS chief information officer (CIO) Oliver Bussmann by hanging around the Fintech office space at Level 30 Canary Wharf. Business Insider reports that Bussman (also known as UBS’s global head of technology) has been mentoring start-ups there. Of course, if you’re working for a start-up you may not want to work for an investment bank – but it could always be your back-up option.
Horror as Blackrock circumvents banks, goes straight for interdealer brokers. (Bloomberg)
Quant trader Peter Hartley returns to Goldman Sachs after the all star quant hedge fund he joined folded. (Financial News)
How to refer to Goldman MDs if you want to get ahead: “These intelligent, thoughtful and innovative leaders.” (Goldman Sachs)
“A monkey could do the job” of a junior banker, said one Ivy League student who’s currently interning at a hedge fund. (Dealbreaker)
‘When the MD talked, he never made any eye contact with me while he made eye contact very often with the other two candidates. It was like he was talking to them and not to me at all.’ (Wall Street Oasis)
Numerix will be hiring 30 people in Ireland .(Numerix)
Brean Sands in north Somerset prepares for high speed trading influx as new Transatlantic fibre cable will reach land there. (Financial News)
What kind of choice is it when your career as an attorney or investment banker demands that you stay at the office 60 hours a week or opt out of the workforce altogether? (The Atlantic)
“Young salesgirls… tethered goats to get business from hedge funds.” (WSJ)
Freakiest Goldman Sachs interview questions. (Business Insider)
Arki Busson is back. (Evening Standard)