Corbat’s Scare Tactics Bear Fruit at Citi
In early March, Citigroup Chief Executive Michael Corbat issued a warning to employees: business units that don’t return an ample yield would be scaled back or cut clean. Investment bankers and traders were clearly listening; Citi’s securities and banking division just posted its strongest quarter in three years.
The unit earned $7.3 billion in the first quarter of 2013, a 50% increase from the previous quarter. Bankers hired in 2011 and 2012 under former Citi CEO Vikram Pandit – particularly those in North America – helped drive the bank’s 30% uptick in first quarter profit, Chief Financial Officer John Gerspach noted in a conference call.
Citi’s U.S. securities and banking division did much of the heavy lifting, generating $3.1 billion in revenue. The North American merger advisory group jumped to fifth from fourteenth in the first quarter league table.
The results were a bit of a surprise considering Pandit championed Citi’s investment banking division. Corbat has so far treated safer, more predictable business units with kid gloves.
Maybe the securities and banking units just needed a kick in the pants.
Landing Un-Posted Jobs on Wall Street (eFinancialCareers)
You hear that a private equity firm or hedge fund is hiring, but can’t find the job posting on their career site. Don’t just email your resume to the company inbox. Start sleuthing.
Pay Disclosure Clock Ticking (WSJ)
With signing bonus disclosure rules looming, some financial advisers are accelerating moves to new firms.
Barclays has been hired to advise Dish Network in its $25.5 billion acquisition offer for Sprint Nextel, pushing the U.K. investment bank from eighth to third in the 2013 league tables.
Golden Parachutes (Financial News)
Deutsche Bank paid more than $20 million in severance to its former chief risk officer and ex-chief operating officer.
Likely Landing Spot (Financial Times)
William Vereker, former co-head of global investment banking at Nomura, is heading to UBS to run the Swiss bank’s corporate client services group for Europe, the Middle East and Africa. The hire likely cost UBS a bundle.
Barely Getting By (FIN Alternatives)
The 25 highest-paid hedge fund managers made $14 billion last year, the lowest since 2008. Appaloosa Management's David Tepper took the crown with $2.2 billion in earnings.
A Stark Reality (FIN Alternatives)
Wisconsin-based Stark Investments will close its doors and lay off its remaining 54 staffers in the coming months.
Buzz Around the Office
Judge Raymond Voet runs a tight ship. The Michigan judge held himself in contempt after his cell phone went off during a prosecutor’s closing argument. He fined himself $25.
List of the Day: Young Professionals
If you are one of the younger people in your office, follow these tips.
- Know your role, and own it.
- Dress 10 years older than you are.
- Be confident, but know you have much to learn.