Morning Coffee: Banking Lifers on Life Support
Bob Diamonds aren’t forever, nor are other well-paid senior finance jobs. And they may never be again.
Big banks, hamstrung by strict capital requirements, low trading volumes and a waning market for big deals, have cut roughly 160,000 jobs since the beginning of last year, with hundreds of thousands more to come, according to Reuters.
In this banking job recession, it’s not just lower level grunts losing their jobs, but also high paid managing directors. With rival banks unwilling to meet their salary demands, many elder statesmen are being forced to leave the industry all together.
"At MD level, it is tougher to accept smaller jobs, and they do not have the same drive and ambition as the young bankers who have just graduated," Zaheer Ebrahim at recruiting firm Kennedy Group told Reuters.
Of course, Wall Street was never a place for a long career for most professionals. The mantra, even 20 years ago, was to put in 15 years of painstaking work, make great money and then retire from the industry when you become too expensive to maintain.
Either that or become chief executive, where you are the one cutting pricey talent.
J.P. Morgan has named Marianne Lake its next chief financial officer. The 43-year-old Lake will succeed Douglas Braunstein in early 2013, becoming one of the most powerful women on Wall Street. Braunstein will transition to the role of vice chairman.
Barclays has appointed Richard Taylor the head of its investment banking unit for Europe, the Middle East and Africa. Taylor will also keep his current job overseeing i-banking in the U.K. and Ireland.
Ever wonder what Wall Street titans eat for Thanksgiving? Me neither, but here you go.
What do Warren Buffet and Notre Dame football have in common? They each sport a similar clichéd sign in their place of business.
Investment bankers won’t be the only ones to see their bonuses cut this year. Secretaries, human resources personnel and backroom staff will get smaller checks, too.
Citigroup plans to eliminate roughly 300 sales and trading jobs within its securities unit. The move appears to have been initiated by former Citi chief executive Vikram Pandit.
J.P. Morgan is rapidly adding to its research team with several high profile hires headlined by David Perry, a former Goldman Sachs exec who will head up research for the bank’s aerospace and defense sectors.
“Shadow banking” has quietly grown into a $67 trillion business, a fact not lost on regulators who are working to increase oversight of the risky banking system.
Buzz Around the Office
The Kansas City Chiefs are 1-9. The team is so bad, it was mentioned in an obituary as a cause of death, paired alongside complications from MS.
List of the Day: Lunch Interviews
Interviews don’t always occur at the office. When talking work opportunities over lunch, heed this advice.
- Get there 15 minutes early and wait upfront to avoid the dreaded table search.
- Order something eaten with a fork, not your hands.
- Be aware of your table manners.