Morning Coffee: 27.5% of jobs at Barclays investment bank to go in two years. How great financiers differentiate themselves at university
Starting from 10am today, the fate of Barclays' investment bankers will be sealed (again). In the third major strategy presentation in as many years, CEO Antony Jenkins is due to unleash his vision for the investment bank of the future. This will entail employing far fewer people.
Ahead of the presentation, Barclays has released a taster on its plans. This confirms the pain that is fast approaching for the investment bank. Between now and 2016, Barclays' says 7,000 people will be extracted from the core and non-core areas of the investment bank. Our calculations suggests that this amounts to 27.5% of the total. Jenkins said this is a "bold simplification" and that Barclays will be "leaner, stronger, much better balanced" in future. The Financial Times points out that Barclays had already committed to cutting 12,000 jobs across the bank before today.
Separately, it seems that Guy Hands, the cherubic private equity mogul, showed a talent for making money even while at Oxford University. The Telegraph reports that student Hands had a business venture selling 'extremely tacky silk prints' of furry animals to housewives in nearby High Wycombe. Hands employed fellow students to sell the prints and took a £10 cut on each sale. When one of his salespeople tried to pay Hands' cut with a cheque that bounced, Hands reportedly vented his fury by presenting the same cheque repeatedly to the bank, thereby incurring a large fine for his 'employee'.
70% of Barclays' job cuts are likely to be in the UK. (BBC)
Barclays’ telecoms team, including its co-head co-head Jonathan Dann and as many as four colleagues, have gone off to RBC. (Financial News)
Why is SocGen hiring in FICC when its revenues there fell 25% in the past year? (SocGen)
Fund management is an increasingly commoditised business. (Economist)
New rules on fund managers' billing process may be bad news for equity researchers and brokerage firms. (Bloomberg)
Stifel, which owns Keefe, Bruyette & Woods, has just bought Oriel Securities. The two will (hopefully) remain separate. (The Times)
New thing: banking analysts based in Liverpool. (Bloomberg)
A £120k salary puts you in the top 2.5% of earners. (Twitter)