Morning Coffee: Aspiring bankers pricing real bankers out of homes. Who wants to join JPMorgan’s hot new team?

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You might think that when you stop studying economics or applied mathematics and actually get a job in banking, you'll be better off. If you're an impoverished (British) student, you might be right. If you're a wealthy international student. you will be wrong.

Data from London Central Portfolio, a property rental firm which accounts for 42% of the prime property let in Central London, shows that young finance professionals aged between 20 and 29 are being supplanted as renters in central London by rich students funded by sedulous parents. In the past 12 months, rich international students accounted for 41% of CLP's rentals and young finance professionals accounted for just 21%. International students' share of the market is up from 29% in 2012, while young finance professionals accounted for the lowest proportion of rentals on LCP's records. LCP says landlords like rich international students because they're prepared to pay above the market rate, have a 'sophisticated lifestyle' and treat the properties with care - unlike the archetypal British student.

To add insult to injury, many of the sophisticated international students depriving junior bankers of central London accommodation seem to be aspiring bankers themselves. LCP says the students are usually studying at bank-feeder schools, like the London School of Economics and Imperial College. Analysts and associates on £60k to £120k are being compelled to venture south of the river. The only thing young bankers have going for them is that they have long tenancies than the international students, says LCP.

Separately, JPMorgan has invented an appealing new team. Henceforth, a group of around 150 people at JPM will be fashioned into a new team called 'JPMorgan Execution Services' reports the Wall Street Journal. This team will be devoted to helping JPMorgan's traders and clients make better trading decisions, and 'will monitor trades across asset classes and electronic platforms, look for opportunities and identify threats to the bank's market share.' Sounds interesting? The man to know is apparently Frank Troise, a JPMorgan 'trading veteran' who's been put in charge of the new venture.

It's questionable whether many people will be knocking on Frank's door, however. While JPMorgan Execution Services sounds appealing from a strategic perspective, it will employ traders who won't 'manage books and won't determine' prices, says the WSJ. This may discourage some keen traders from joining. The team is also all about cost cutting and will be tasked with helping clients decide whether to use a human trader, an electronic platform or an algorithm. It's not clear how P&L will be attached to this. The most likely candidates seem other 'veteran traders' looking for a quieter life.


Credit Suisse is exiting commodities and refocusing FX on voice trading. (Financial Times) 

Trading in Barclays’ dark pool is down 76%. So will it be shuttered? (Bloomberg) 

Barclays is pulling back from FICC and its share price has fallen. Goldman Sachs is continuing in FICC and its share price has risen. (Financial Times) 

European banks will increase salaries and implement fixed payments to avoid bonus caps, says Mercer – six months after this happened. (Bloomberg)

Ex-Evercore MD says he was only inside trading to pay child maintenance. (Bloomberg) 

Goldman MD found dead after kiteboarding accident. (Bloomberg)

How banks sidestepped the Volcker Rule. (WSJ)

3i is starting a graduate recruitment programme.  (Financial News)

Billionaire Carlos Slim says people should work 11 hours a day three days a week. (Financial Times)

Nomura offers some hot healthcare benefits, including a holistic massage service. (Employee Benefits)

Trader who left his job to travel the world was murdered in Mexico. (CNN)

This was his blog. (ANewYorkerTravels)

Related articles:

Where to find 8,500 more jobs, soon. When Goldman Sachs derivatives structurers go wild

Goldman Sachs? Or Morgan Stanley? The crazy patience of coverage bankers

Is it worth burning out for less than £100k? Retail bankers causing annoyance at Barclays

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