Morning Coffee: Careers in finance that will still be hot in 2030. Citigroup investment bankers take control at Barclays
Where must you build a career in finance if you want to ensure your enduring employability? Clearly not in rates and FX trading, where revenues are down 70% in five years. Possibly not in M&A, where people are becoming frustrated about their inability to get promoted. So, how about asset management, which Morgan Stanley boss James Gorman says is due to keep growing and growing for years to come?
Writing in the Wall Street Journal yesterday, Gorman proclaimed that, "asset management will become the single-largest segment of financial services, as users of capital become providers of capital in newly developed economies and an aging global demographic creates an inevitable shift from consumers to savers." Growth in the middle class will create an, "an enormous pool of savings in search of investment, for which they will seek professional advice and execution," added Gorman. The new 'investor class' will not be happy to do their investing electronically - they will "value human relationships with financial advisors."
Gorman's enthusiasm for asset management is echoed by Michael Faissola, the 46 year-old head of the asset and wealth management arm at Deutsche Bank. “Our ambition is for wealth and asset management to be a growth engine,” Faissola declared yesterday. Earlier this week, Financial News reported that Deutsche plans to hire 500 people for its asset and wealth management business in London over the next five years.
Separately, ex-Citigroup M&A bankers are taking the helm at Barclays. Following the promotion of Tom King, the 'thoughtful' ex-Citigroup banker as head of Barclays' investment bank in May, it seems that King is moving to promote his ex-Citi friends. Matthew Ponsonby is becoming EMEA head of M&A and Reid Marsh is becoming co-head of M&A in Asia. The Financial Times points out that both Ponsonby and Marsh followed King to Barclays from Citi in 2009. Meanwhile, Mark Warham, EMEA head of M&A at Barclays, is exiting the bank. Warham joined Barclays in 2009 as EMEA head of M&A, charged with building a 'top-tier European M&A franchise from scratch.' He built that franchise (or at least tried to - Barclays only ranks 13th in EMEA for M&A) and is now leaving for Rothschild, where he will be a vice chairman focused on UK deals. The FT suggests that Warham may have been peeved at being overlooked for promotion, but says too that he'd been in discussions with Rothschild for a while.
Head of ICAP's special electronic trading platform is quitting one year after being promoted. (WSJ)
Senior US banker at Deutsche is leaving for Cerberus. (Reuters)
Mid-ranking strategist at Morgan Stanley is leaving for Tudor Capital. (Bloomberg)
UBS hires senior sponsors banker from JPMorgan. (WSJ)
JPMorgan is counting its paper clips. (WSJ)
Christopher Hohn says Goldman Sachs are idiots. (Telegraph)
Insurgency at Pimco. (Bloomberg)
“People who take short cuts, are political, prioritize themselves above others, take excessive risks for personal gain, don’t value capital, or are unethical are outright cancers,” says Jefferies CEO. (Bloomberg)
As people get richer, they are more likely to feel entitled, to exploit others, and to cheat. (Guardian)
Why trading volume is tumbling, in five charts. (Marketwatch)
How a self-deprecating, forgetful youth with a cigarette hanging from his mouth became a billionaire quant hedge fund manager. (NYT)
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