An entire industry exists to help the children of wealthy parents stay on the rails. Citigroup, for example, helps millionaires' children manage their money and many wealth managers offer guidelines on how to ensure lucky children don't turn into indulgent-losers.
But what about children of non-wealthy parents and reprobates? Are they in equal danger of straying off track? In an interview in yesterday's Evening Standard, Crispin Odey of hedge fund Odey Asset Management suggested not. Odey's father was a, "wastrel from beginning to end," Odey said. Although Odey came from a long line of wealthy Yorkshire industrialists, Odey's father ran up huge debts and spent his life turning to his son for handouts. Aged 23, Odey was forced to sell the family home (a 4,000 acre estate that had been in the family for over 250 years) to pay for his parents' upkeep.
“I was 23, but I learned a lot,” Odey reflected. It's fair to assume that the experience may have contributed to Odey's ambition to succeed. According to the recent Sunday Times hedge fund rich list, he and his wife are worth a combined £455m.
Odey also dispensed advice on how to become financially blessed. “If you want to be a rich man you need to think like a rich man," he said. "You need patience. You need to be imaginative, and you need a thick skin to make decisions against markets — to believe you’re right and they’re wrong.” Odey also suggested the UK economy needs a zero interest rate and a housing boom to get out its current morass.
Separately, Financial News reports today that Cannacord Genuity has been doing some more hiring in London and has brought on Adrian Haxby, the former co-head of ECM at UBS. This follows its purchase of Collins Stewart in March. Does this mean Cannacord will be doing some more hiring in 2013? Apparently not. It's been making redundancies one insider tells us, and Haxby's appointment was a one off.
Sutesh Sharma, Citi’s former prop trading chief, set up a hedge fund, hired 12 people, and tried to raise $500m. He only raised $200m, and now it’s closing down. (Finalternatives)
Hedge fund carnage coming as funds transition from teenagers to adults. (Reuters)
Bankers who take government bail- outs to stay afloat should be paid no more than the civil servants who saved their business, said Nassim Nicholas Taleb. (Bloomberg)
Canadian business magazine Macleans said the idea that Diana Carney was "some sort of tree-hugging leftist radical" was "bizarre". (Guardian)
“At Goldman Sachs, Mark Carney was seen as very reputable and conservative. He would never be viewed as someone prone to taking excessive risks.” (Financial Times)
CBC is expanding overseas and launching a private banking operation in Paris. (WSJ)
Deutsche will probably not be paying Libor fines from the bonus pool. (Bloomberg)
FX trading revenues are in serious decline. (WSJ)
What to do if you lose your job and are unencumbered by a spouse and children. (The Atlantic)
Credit Suisse banker starts offering after work parties.(FiNews)
Where the UK expats live. (Guardian)
Weird rituals surrounding the CFA exams. (300 hours)