As evidence that the Brazilian economy is booming – and banking not being an exception – Businessweek reports that bankers in that country saw their pay jump by as much as 25 percent last year when they defected to competitors. Meanwhile, average pay for U.S. investment bankers plummeted by an average of 27 percent in 2011. The explanation? A simple case of supply and demand.
Typical salaries for managing directors in Brazil are between $350,000 to $500,000, not including bonuses, compared with $300,000 to $400,000 at top U.S. banks. While there were some layoffs at the end of last year, there was a net increase in investment banking jobs in Brazil in 2011, the story reports.
Businessweek quotes an expert who predicts that Brazil’s local debt and credit markets will be the next big hiring grounds as Deutsche Bank, JPMorgan Chase, Bank of America and Goldman Sachs have been hiring in these areas. Brazilian pay increases lag 2010, but experts expect bank hiring in Latin America will continue to grow. “The biggest challenge for investment banks in Brazil for 2012 will be to retain senior executives as fees decline from underwriting stocks and bonds and from advising on mergers and acquisition,” the story states.
Merrill broker trainees, small-market advisers and low-end producers face tougher compensation grid. [Investment News]
Susquehanna cut 30 jobs in its institutional brokerage, mostly in New York. [Bloomberg]
Raymond James hired two financial advisors from Wells Fargo to open its first employee broker-dealer office in Richmond, Va. [On Wall Street]
Credit Suisse’s new head of asset management is planning to start a hedge fund within the bank. [Businessweek]
Credit Suisse was named advisor on a potential sale of the Dutch government’s $4 billion stake in Urenco. [Financial Times]
Baltimore advertising firm Millennial Media named Morgan Stanley, Goldman and Barclays as the manager of its $75 million IPO. [Bloomberg]
Japan is poised for a busy IPO year with as many as 50 offerings. [Businessweek]
TD Ameritrade CEO Fred Tomczyk earned $5.98 million last year, up from $5.97 million in 2010. [AP]
The new director of the Consumer Financial Protection Bureau urges consumers to file complaints about financial institutions. [NY Times]
Private equity gets boring with smaller, less risky deals. [WSJ]
Hedge fund services firm GlobeOp is in talks with Advent and TPG about a potential buyout. [Reuters]
Citi ended talks to sell its consumer lending unit, OneMain. [WSJ]
PwC was fined a record $2.2 million over a J.P. Morgan client audit. [Businessweek]