Wednesday's Headlines: JPMorgan Cut Jobs in Commodities Unit After Sempra Purchase
JPMorgan's Masters Urges No `Panic' as Commodities Unit Slips [Bloomberg News]
JPMorgan's commodities business cut as much as 10 percent of the combined front-office staff after absorbing parts of RBS Sempra Commodities in July. Its oil unit also lost "key people" to defections, Blythe Masters, JPMorgan Chase & Co.'s head of commodities, reportedly told her team in a 35-minute internal conference call July 22.
The New Middle Men [The Deal]
A new breed of specialty finance companies is springing up to serve mid-size corporate borrowers. The Deal takes an in-depth look at three such firms, MidCap Financial, NXT Capital LLC and EverBank Commercial Finance, that provide another career option for commercial banking professionals. Each firm focuses on certain industry sectors, has about $1 billion in capital, and targets companies in a $5 million - 50 million Ebidta range.
The lagging M&A recovery is dampening revenue (and thus near-term career and compensation prospects) at boutiques no less than bulge-bracket institutions. Evercore Partners' revenue fell 9 percent last quarter as slow M&A business dragged investment banking revenue down 32 percent compared with a year ago.
Goldman Mulling Spin-Off of Private Equity Business: Sources [Fox Business]
On the heels of news that JPMorgan will divest its FrontPoint hedge fund unit, Goldman Sachs's brain trust is weighing a possible spin-off of "a least a piece" of the bank's private equity arm due to new restrictions imposed by the Dodd-Frank Act. Goldman's total investment in its PE funds is close to 30 percent of the bank's capital - far above the new law's 3 percent ceiling. No word on how a spin-off would affect the unit's employees.
Similar to the big U.S. banks, Société Générale's second-quarter results signal caution about future bank hiring and bonus prospects. While company-wide revenue rose 17 percent from the year-earler period, investment-banking revenue slid 34 percent as clients became reluctant to tap capital markets during the sovereign-debt crisis.
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