The European investment banking world took it on the chin last year, generating only 23% of global investment banking revenue, the lowest share on record, while the U.S. accounted for its greatest revenue share in nearly a decade, according to Dealogic.
The numbers underscore an alarming trend for European investment bankers, but one that’s well told. The level of U.S. success in mergers and acquisitions is particularly telling, with U.S. banks accounting for 47% of global M&A revenue in 2012, up from 40% a year earlier.
All this lends some credibility to U.S. investment bankers who, whether the general public wants to hear it or not, believe they are underpaid, especially come bonus time.
Americans at firms like Barclays and Deutsche Bank have become frustrated with the percentage of the bonus pool doled out to more successful U.S. offices, but can’t do much about it. Their only real tool — threatening to quit — isn’t effective. Competitors just aren’t hiring.
And if they are, they’re not paying big cash bonuses either.
Morgan Stanley joins the ranks of those laying off, reportedly planning to cut roughly 1,600 jobs from its investment banking division and other securities groups. Senior employees are said to be most at-risk.
U.K. banks including Barclays, Royal Bank of Scotland Group and Lloyds Banking Group are instituting a cash cap on bonuses for 2012.
With banks like Citi handing the technology department over to top executives, firms will increasingly recruit people with hybrid skills in technology and business.
Steven Cohen’s SAC Capital Advisors, the Connecticut hedge fund at the center of an ongoing insider trading investigation, is increasing the bonuses paid to equity, macro and commodity portfolio managers.
Macquarie should close or sell its unprofitable M&A advisory and equities businesses, according to UBS.
Pending confirmation, the next secretary of the Treasury will be a close confidant of President Obama: his chief of staff and former budget director, Jacob Lew. Here’s what the soon-to-be former secretary won’t do.
UBS has “made a lot of progress” since acknowledging its role in the Libor rate-fixing scandal, but still has “negative elements” to weed out of its culture, according to chief executive Andrea Orcel.
Buzz Around the Office
Residents of the District of Columbia watch twice as many porn videos per capita as any state in the U.S. No wonder the fiscal cliff deal took forever.
List of the Day: Clichés to Avoid
Hiring managers hate these empty phrases. Get them off your resume.
- Team player.
- Proven track record.