Senior Wall Streeters are increasingly finding second careers at regional banks outside of New York - as opposed to the traditional career trajectory of leaving IBs for hedge funds or early retirement, according to a Wall Street Journal article entitled, "Go West, Investment Banker:
Hello Cleveland! Regional Lenders Grab Veteran Talent in Push for Business."
The article states that the the New York state comptroller's office predicted this month that Wall Street would cut 10,000 jobs by the end of 2012, bringing the total losses since January 2008 to 32,000. Bank of America last month announced global staff cuts of 30,000, or 10 percent of the firm's workforce.
Meanwhile, regional banks, like KeyCorp, Fifth Third Bancorp in Cincinnati, SunTrust Banks Inc. in Atlanta and U.S. Bancorp in Minneapolis, have been adding bankers for stock, bond and loan offerings, as well as mergers and acquisitions.
By taking similar positions at smaller banks in other parts of the country, some bankers enjoy a larger role in a more entrepreneurial environment and a lower cost of living. On the downside, smaller markets can come paychecks that suffer by 50 to 75 percent, though some of that can be made up by generating more revenue at the new firms. Also, the influx of Wall Streeters can cause culture clashes at the new banks, the article stated.
Morgan Stanley sold its mortgage servicing company Ocwen Financial to Saxon Mortgage Services. [DealBook]
Raymond James is ramping up its small custody unit. [Investment News]
UBS's Q3 profit fell 39 percent after a rogue-trading scandal had cost it $2.3 billion, warned of job cuts. [Financial Times]
Deutsche Bank reported Q3 profit that exceeded expectations, but warned of job cuts in its investment bank. [NY Times]
Banks are sitting on more cash than they can use. [Dealbook]
FINRA found that hedge fund SAC Capital Advisors made least $14 million in the past 10 years on suspicious trades. [Bloomberg]
South Korean oil refiner Hyundai Oilbank chose Citi and BofA Merrill Lynch to underwrite a $2 billion IPO. [Reuters]
Regions Financial is offering as much as $200 million to help finance the sale of its Morgan Keegan brokerage unit. [Investment News]
The SEC is warning financial firms that following the spirit of the law is just as important as the letter of the law. [On Wall Street]
RBS and Aon are among financial firms moving operations from Hong Kong's central business district where a space shortage has pushed up rents in the world's most expensive office market. [Businessweek]