Morning Coffee: Goldman adding bankers who work for nothing. Fund managers targeting the academically mediocre
Goldman Sachs is bolstering its M&A practice in Asia. The firm is relocating Christos Tomaras, head its European private equity M&A practice, from London to Hong Kong team. It's shunting Richard Campbell-Breeden, ex-head of M&A in Asia ex-Japan, into a role as Asia chairman. It's moving John Kim, who was the head of Goldman Sachs Korea, into Campbell Breeden's old job. And it appears to be hiring a financial institutions group associate for its Hong Kong office.
Goldman's M&A moves follow a 36% increase in the value of Asian M&A this year. Asia is clearly a growth region. There's only one drawback; M&A bankers in Asia often don't command any fees. As Moelis and Greenhill complained last week, Asian M&A is usually a loss-leader. The real money in Asia comes from IPOs and equity capital markets work - Asia's M&A bankers create the relationships and are the bag carriers for their fee-earning colleagues.
Elsewhere, City Am reports that London's fund managers are boosting their Investment 2020 scheme, which aims to get 2020 non-academically perfect young people into the investment management industry every year by 2020. For the moment, they're still a long way off that goal - just 120 people will be hired this year by firms as diverse as Aberdeen Asset Management, Blackrock and JPMorgan. The scheme is 'talent driven' says the Investment 2020 website - 'successful trainees are not judged on grades achieved, university attended or whether the applicant has previous work experience. It asks what you will bring to the industry and to the firm.' Talented trainees are given a year's structured work experience at the fund management firms involved. 90% of them go on to secure permanent employment.
John LeFevre, the man behind the Goldman Sachs Elevator, did not receive a job offer at the end of his internship. (Business Insider)
Deutsche Bank is having admin problems with its right issue. (Reuters)
Goldman Sachs likes Credit Suisse. (Businessweek)
Credit Suisse thinks European banks could have to pay $103.5bn in fines. During the financial crisis, banks lost $201bn. (WSJ)
BNP Paribas is coaching its bankers on how to appease clients’ concerns about its fines. (Bloomberg)
Kweku Adoboli tried, and failed, to appeal against his fraud conviction. (Reuters)
Richard Banks, the man winding down Northern Rock (still), earned £815k last year. (WSJ)