Morning Coffee: JPMorgan details where it's hiring 000s. Perfect background for a career in HFT
Want to work for JPMorgan? That's good - if you want to work in the bank's technology or control divisions. It's less good if you want to work in a front office role in sales, trading or M&A - these places are not where the hiring is.
In the bank's annual shareholder letter, released late yesterday, Jamie Dimon detailed precisely where JPMorgan has been adding staff and where it will continue to do so. In short, Dimon said JPM has been busy making the following headcount changes:
- 13,000 people across regulatory compliance and control (risk, compliance, finance, technology, oversight, audit), added from the end of 2012 to the end of 2014.
- 8,000 people for an anti-money laundering programme (these may be internal moves).
- 500 people for the submission/resubmission of stress test information (already in place).
- 500 people to work on recovery and resolution plans (already in place).
- 400 people to build out the liquidity management infrastructure (already in place).
- 250 people to work on model risk and development (up by 130 on 2012).
Dimon also said JPM continues to invest heavily in technology, with $600m spent on technology focused on regulation and control since 2011. In a separate letter, Matt Zames, JPMorgan's COO, said the bank now devotes 8-9% of its annual revenues to technology spending and that it plans to spend $250m on tech in 2014.
Where does this leave the investment bank? In his own letter, Daniel Pinto, chief executive of the corporate and investment bank, confirmed that JPM wants to build its electronic equities trading infrastructure this year. Pinto also lauded a new JPMorgan initiative, 'Collateral Central', which, 'helps clients track collateral across multiple venues and to optimize collateral across counterparties.' Unfortunately, there was no mention of any additional hiring in the markets or advisory business. Instead, Pinto said that in view of all the extra control hiring, JPM wants to keep a strong grip on its investment banking costs. Welcome to the new reality.
Separately, Mikhail “Misha” Malyshev, founder of high frequency trading firm Teza Technologies is reportedly opening his funds to external investors (and therefore might need some fund marketing professionals soon). Malyshev has a perfect sort of CV for anyone interested in a high frequency trading career. He has a bachelor’s degree in physics and mathematics, and a master’s degree in theoretical physics from the Moscow Institute of Physics and Technology. He earned a Ph.D. in astrophysics from Princeton University in 1998 before spending a few years at Bell Labs and McKinsey and joining hedge fund Citadel in 2003. In 2008, Malyshev reportedly made $1bn for Citadel. He left Citadel to set up Teza Technologies in 2009.
Jamie Dimon's had a pay rise ($11.5m to $20m), but he has to stick around. He loses the entirety of his stock bonus if he leaves in less than two years and half if he leaves less than three. (Financial News)
If you once worked for Schroders, you've got a strong chance of becoming a company chairperson. Several ex-Schroders executives are now in leading positions in UK plc ( Nick Ferguson (BskyB) Sir Win Bischoff (Lloyds Banking Group), Robert Swannell (Marks and Spencer), Sir Richard Broadbent (Tesco), Gerry Grimstone (Standard Life) and Dame Alison Carnwath (Land Securities)). (Financial Times)
Goldman Sachs has cut its Brazilian investment bankers from 45 to 20, but still wants to be in Brazil a bit. (Reuters)
Brazil’s central bank is allowing the country’s commercial banks to open for an hour less each day during the world cup so that employees can watch the games. (Bloomberg)
Kai Lew, a director of sales at Deutsche Bank in London tasked with handling central-bank clients, has been put on leave. Deutsche thinks she communicated improperly with the Monetary Authority of Singapore. (WSJ)
Ed Jennings – UK Fig DCM director has quit Barclays (Global Capital)
Tony Blair and McKinsey are advising on the restructuring of the World Bank. Morale there is at rock bottom. (Financial Times)
How to live as a trader. (Trader_Dante)
How to get a bond strategy job at Blackrock. Deutsche Bank ordered to reinstate £3m rates trader in exactly same role
Exhaustion in the City as banks refuse to hire. How long it takes to get to the top of JPM
Goldman Sachs raises the bonus bar. Why high paying Hong Kong jobs are risky