Lunchtime Links: SocGen's results are bad news for anyone working in European FICC
This may simply be coincidence, but European banks have almost universally had a disastrous first quarter in fixed income, currencies and commodities. SocGen, which released its Q1 results today, is no exception.
SocGen's FICC revenues were down 50% year-on-year, thanks to what the bank itself described as, 'mixed market conditions in Europe,' including lower volumes than in the US market, and 'tensions' over Greek sovereign debt.
This doesn't sound good for SocGen, but it reflects a trend in FICC revenues across several European banks: year-on-year they were down 67% at Barclays Capital and 38% at Credit Suisse. Among European banks, only UBS, which was a FICC disaster zone in 2009, managed to substantially increase its revenues in Q1 2010. By comparison, among US banks, JPMorgan, BofA Merrill, Goldman Sachs and Morgan Stanley all achieved a big rise.
The question clearly is, if FICC did badly in Europe in the first quarter because of sovereign debt issues, what's going to happen in Qs 2,3 and 4?
Three people dead in Greek bank riots and fire. (Zero Hedge)
SocGen's M&A hiring has yet to 'gain traction'. (Financial News)
Stefan Jentzsch's big lesson: never ever promise bonuses during a town hall meeting. (Financial Times)
Goldman may be prepared to agree to lesser charges and a fine. (The Times)
One person familiar with Mr. Paulson's thinking said he would never return to Goldman. (Wall Street Journal)
Most importantly, the witch-hunt against Goldman is completely overshadowing any sensible debates about reform. (Financial Times)
Arrogance and secrecy are in Goldman's institutional bloodstream. (Felix Salmon)
The key problem in the financial industry is not the institutions, it is the people. The people in the financial industry are mercenaries. (TwilightofVentureCapital)
There's a new head of research at RBS, a departing head of investment banking at Citadel, and a senior Citi M&A banker is moving to Macquarie. (Reuters)
Morgan Stanley has shuffled its senior M&A bankers. (Reuters)
Prudential has delayed its $20bn AIG rights issue. This is particularly bad news for JP Morgan, Lazard and Credit Suisse who were advising it. (Financial Times)
Sleeping less than six hours a night leads to premature death. (Telegraph)
Working in investment banking, you will age more rapidly than the average person. (MergersandInquisitions)
New executive dining room coming soon to Goldman Sachs. (The Times)
