Morning Coffee: M&A Market May Be Ripe for People Moves
Deal-making has been down this year, and for good reason.
Big banks have been walking on eggshells, raising capital through safer channels while waiting for resolution of major political decisions in Europe and the U.S. But M&A deals picked up toward the end of the year, with the U.S. leading the way, setting the stage for what could be a breakout 2013 for some North American bankers, according to Financial Times.
The economic conditions in the U.S. aren’t ideal, there’s no questioning that. But compared to Europe, the United States is a safe haven for M&A deals and debt financing for buyouts.
“If you look at growth rates over the next three to five years the U.S. has the best opportunity to produce the most durable and sustained growth,” Michael Carr, head of M&A in the Americas for Goldman Sachs, told Financial Times.
The potential for a renaissance in the M&A world could make 2013 an interesting year in terms of people moves. M&A bankers at Barclays, for example, have been killing it this year, but find themselves frustrated with their bonus structure, and with virtually nowhere else to go. An improved M&A market could give irritated bankers more options to not only make deals, but to also find new homes.
We’ll probably need a resolution to that pesky fiscal cliff, though, for any positive momentum. Any time Washington…
Morning Coffee will be taking a short break for the holidays. We’ll talk to you after the New Year!
The New York Stock Exchange has a new owner. Rival IntercontinentalExchange has agreed to purchase the big board for $8.3 billion. ICE said the NYSE Euronext brand will be preserved.
Head to Wealth Management (eFinancialCareers)
Jobs in private banking and wealth management grew the most in 2012, with a 42% increase over 2011 in postings on eFinancialCareers.com.
Early Appraisals (eFinancialCareers)
Banks in the U.K. started their appraisal process earlier in 2012 than in previous years. Senior bankers are worrying that the timing change could signify that banks are looking to clarify their cut plans.
Home Court Disadvantage (Bloomberg)
U.S. authorities haven’t had much of a problem bringing criminal insider trading charges against American citizens. Foreign defendants, on the other hand, have consistently avoided the clinker.
Protecting the Flock (Bloomberg)
Bank of America Chief Executive Brian Moynihan reportedly nixed proposed changes to the compensation structure of Merrill Lynch financial advisors that would have reduced their payout by two percentage points. With talent poaching in wealth management on the rise, Moynihan probably made the right call.
No One Left to Fire (Financial News)
UBS is being fined more than Barclays for its role in the Libor rate-fixing scandal, and it’s seeing many of its former employees implicated, but there likely won’t be a major management shakeup. The reason: most all of the C-level staff has already left.
Frank Frecentese, global head of hedge funds at Citi Private Bank, has left the firm. Reasons for his departure have yet to be disclosed.
Buzz Around the Office
Calling Each Other’s Bluffs (The Mirror)
An Indian man who caught his wife cheating on him climbed up a tree and refused to come down until she apologized. His wife declined. The man has been living in the tree for nine months and counting.
List of the Day: Credit Check
A growing percentage of employers conduct credit checks on prospective employees before making hires. If you think yours may hold you back, do this.
- Check it yourself to know what you are dealing with.
- Be honest without going into detail.
- Above all else, remain confident.
