Back in late 2012, we speculated about how much Tom Hayes - the alleged 'mastermind' of the LIBOR scandal, earned while he worked for UBS. Based upon Hayes' alleged revenues of $260m, a sum of $10m (£6.5m) for Hayes over a three year period seemed likely. We were wrong. It turns out that UBS was more parsimonious than we'd supposed - but that Citigroup made up for it when he left.
During 3 years working for UBS (2007, 2008 and 2009), the Financial Times reports that Hays claimed to generate $289m in revenues for the Swiss bank, which paid him a mere £1.3m ($2m), a cut of less than 1%. By comparison, Hayes earned £3.5m ($5.38m) in only nine months at Citi after he left UBS in 2010.
Hayes' pay leaves UBS looking unusually stingy and Citi looking unusually generous. It also suggests that anyone at UBS who received a big bonus in 2008 and 2009 in particular, might have Hayes to thank. Either way, Hayes seems to have squandered much of his allegedly ill-gotten gains: he's receiving legal aid from the British government to help him fight the LIBOR case, something only available to people with limited funds of their own.
Separately, if you're working long days and wondering how to combine them with bodily needs like eating, Silicon Valley professionals have come up with a solution. The New York Times says protein powder shakes are a thing outside gym-circles. It cites the example of Aaron Melocik, a 34 year-old programmer who, 'blends together half a gallon of water, three and a half tablespoons of macadamia nut oil and a 16-ounce bag of powder called Schmoylent.' Melocik sips one jar for breakfast and another jar for lunch. “It just removes food completely from my morning equation up until about 7 p.m.,” he says, proudly.
“The point is you’re greedy; you want every little bit of money you can possibly get,” a lawyer said, quoting Mr. Hayes. “What can I say? That’s how you are judged. That’s your performance metric." (NY Times)
Deutsche Bank has paid $55m to resolve allegations that it understated the risk of losses on its derivatives book during the financial crisis. Whistle-blowing employees said that if Deutsche had accounted properly for its positions, its capital would have fallen to dangerous levels during the financial crisis and it might have required a government bailout to survive. (Financial Times)
Citi is the top bank in FX trading. Followed by Deutsche. (Euromoney)
Goldman Sachs just relocated Matthew Westerman, its former head of APAC investment banking, to London. He will be chairman of EMEA IBD. (WSJ)
Stephanie Cohen is Goldman Sachs' new head of global financial sponsor M&A. (WSJ)
Credit Suisse just hired an ex-employee turned venture capitalist as its head of 'internet investment banking'. (WSJ)
Young quants are becoming risk managers instead of traders. (Traders Magazine)
Five formerly prestigious jobs that are now on the B list. Including, stockbroker. (Marketwatch)
How to say no at work: “You have to communicate that you don’t want to decline a project, but you’re trying to be realistic.” (Forbes)
There’s not enough office space in Europe for banks to move out of London. (Evening Standard)
Why you should never go part time when you have a six figure job. (HBR)
What you will really learn at Harvard Business School. (Medium)