U.S. investment banks have been clobbering their U.K. rivals for well over a year, generating near-record revenue share while their European counterparts continue to struggle. It’s mostly market conditions, experts say. A new report belittles that theory.
American-based banks have taken more investment banking fees from U.K. clients year-to-date than hometown British banks, earning a 38.2% market share in the U.K., the highest since 2009, according to Dealogic. Local banks, meanwhile, own just a 27% share of U.K. investment banking revenue between January 1 and May 22, down from 35% during the same period last year. What’s more, investment banking revenue generated from U.K. clients is actually up on the year.
Admittedly, Royal Bank of Scotland, a state-owned bank looking to privatize itself, has essentially walked away from investment banking, contributing to the drop in local activity. But still, the numbers are eye-opening. U.S.-based J.P. Morgan has earned $133 million in the U.K. itself, accounting for roughly a 10% market share, trumping that of local banks like Barclays and HSBC.
Aging Bankers Turning to Booze and Bibles (eFinancialCareers)
Drinking and drugs are a young man’s game, unless you’re stressed out and working on Wall Street, apparently. Results of a new eFinancialCareers survey suggest that the longer you work in financial services, the more likely you are to rely on drugs and alcohol to manage stress.
An Insider Among Us? (WSJ)
Wall Street remains skeptical of a series of trades in Saks shares that were made just minutes before news broke that the company was considering a sale, making the still unknown traders huge profits.
BNY to Add 100 Wealth Managers (eFinancialCareers)
Over the next two years, BNY Mellon Wealth Management will grow its sales force by 50%, and plans to add private bankers, mortgage bankers, portfolio managers and wealth strategists in key markets across North America.
Comp Up for Finance Execs (AFP)
Average salaries for employees working in finance departments at corporations increased by 3.4% in 2012, according to a new survey. Only executives saw their average percentage increase grow from the previous year.
U.S. Bonus Caps (Here is the City)
The European Parliament plans to pressure the United States into adopting bonus caps similar to European ones in an effort to make the playing field more level. Similar regulations aren’t likely, Alan Johnson, founder of compensation-consultant firm Johnson Associates Inc., told us in March.
Hedge Funds Stink (FIN Alternatives)
The average hedge fund trails the Standard & Poor's 500 Index by about 10 percentage points, according to Goldman Sachs. Maybe that’s why they keep closing every day.
Buzz Around the Office
What Happens at Bieb’s, Stays at Bieb’s (TMZ)
If you want to party with teen heartthrob Justin Bieber, and who wouldn’t, you’ll need to sign the most insane liability waiver ever created. One stipulation: If you tweet about the party or Instagram a picture, you’re on the hook for $5 million. Seems fair.
List of the Day: Hating Your Job
Working at a job you hate? Try doing this.
- Find a work friend and commiserate.
- Build time into your calendar to recharge.
- Look for a new one – actively!
(Source: AOL Jobs)