Morning Coffee: Deutsche Bank bonuses not quite as bad as feared. 30-something bankers never grow up
It could have been worse. Not long ago, there were reports that Deutsche Bank's bonus pool would be down 25% to 30% for last year and that 2015 would mark a nadir for the German bank's bonuses. Fortunately, John Cryan has been kind: Handelsblatt reports that Deutsche Bank's 2015 bonus pool will in fact be down by the merest 15%.
Cryan's kindness nonetheless leaves Deutsche's bankers more harshly treated than Barclays' (bonus pool down 8%), but more gently treated than traders at Credit Suisse (bonus pool down 36%). However, the pain at Deutsche will not be evenly distributed. Handelsblatt says Deutsche's 250 most senior bankers will be dealt the most punitive cuts and that "some divisions" have had their bonus pools reduced by 30%. All things being equal, this would seem to indicate that some people at Deutsche will actually receive bigger bonuses for 2015. Those people will almost certainly be juniors. In a fair world, they will also be working in Deutsche's fixed income trading business - which outperformed the market last year.
Separately, Financial News has been talking to some frustrated 30-somethings in banking. "There's only one or two [slots for promotion] a year," complains one, adding that this, "creates political issues... People fight harder and dirtier." Today's mid-ranking bankers aren't getting promoted and have nowhere to go, says Financial News. - They're a "lost generation." One of them blames the MDs who don't want to move on: "When I started you didn’t have lots of guys in their 50s and 60s still working.”
Jamie Dimon says Wells Fargo is "very aggressively" and "very successfully" building its US investment bank. (Bloomberg)
Goldman Sachs hired Charles Lytle from Citi for its UK corporate broking team. (Financial News)
Mizuho, now hiring ex-Barclays equities bankers in Japan. (Bloomberg)
The head of Nomura’s investment bank is becoming its COO. (Bloomberg)
Barclays is targeting a softer cost-to-income ratio of below 60 percent "within a reasonable timeframe", as well as a return on equity it describes as "attractive." (Bloomberg)
Gary Greenwood, analyst at Shore Capital, described Barclays’ results as “dismal” and noted the bank appeared to be ditching targets set to measure returns to shareholders. (Guardian)
Maybe Bob could buy Barclays Africa? (Bloomberg)
How it is when Jes Staley messages you: "I am immensely grateful for your commitment and dedication... It is energising and inspiring to me". (Business Insider)
The Financial Industry Regulatory Authority is requesting firms to submit information regarding their organizational culture and how those values impact business decisions. (Corporate financial weekly)
Investment banking receptionists rendered efficient. (FM World)
London: the world’s most expensive city to live and work in. (Evening Standard)
The European banking crisis is now over. (WSJ)