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Morning Coffee: How much Barclays traders earned aged 25, 26 and 36. Morgan Stanley man leaves for odd job

The Barclays LIBOR trial is proving instructive in terms of traders' pay. For anyone wondering how much Barclays' formerly paid its LIBOR traders in London and New York, the answer is simple: a lot.

We learn, for example, that Jay Merchant, a then-36 year-old then-director of US fixed income trading at Barclays earned £2.2m ($3.1m) in 2007, that Ryan Reich, a then 25 year-old trader earned $800k (£569k) in 2007, and that Alex Pabon earned $325k aged 26 in 2005.

Barclays pays comparably to Deutsche Bank, whose compensation for LIBOR traders was revealed in an earlier court case. In 2011, Deutsche Bank paid two (Frankfurt-based) managing directors on its LIBOR desk €2.7m ($3m) and €780k ($887k). A report on traders' pay from 2014 suggested rates traders earn more than traders in other asset classes.

Separately, a man has left Morgan Stanley. And he has not left for fintech. Financial News reports that Klaus Froehlich, Morgan Stanley's Frankfurt-based head of capital markets for Germany and Austria, has resigned after 16 years. He will be joining a construction company in Dubai as CFO.


J.P. Morgan's Daniel Pinto says 2016 will be a good year for M&A and that J.P. Morgan's fixed income business generates "a solid" 15% return on equity and the bank won't be pulling back from it.  (Financial News)

So, you don't want to work for an M&A boutique after all. (WSJ) 

Credit Suisse appoints new head of southeast Asia ECM, formerly of Macquarie. (Global Capital) 

Don't mention Brexit at Credit Suisse. (Bloomberg) 

An extremely experienced utilities analyst is leaving UBS in Australia after issuing a contentious research note. (The Australian)

The former chief executive of HSBC held his £8m Kensington townhouse through an offshore company – and planned to avoid tax by effectively renting the property to himself. (The Guardian) 

Deutsche Bank's chairman says he's not planning to step down and that John Cryan is doing a good job: "“I am impressed with how quickly and how deeply he has worked his way into the extremely complex company that is Deutsche Bank.” (Financial Times)

Surprise! The new head of the UK's Prudential Regulation Authority formerly worked for Deutsche Bank and UBS. (Sky)

Citigroup's new pay plan says executives can't earn more than the original value of share units granted to them if the bank's shareholder returns are negative, regardless of how well the bank does compared to peers. Shareholders are complaining that it also needs to say that the bank must outperform peers for executives to get a full payout. (WSJ) 

Shares in Citi trade at a chunky discount — the stock is worth 40% less than its book value and shares have dropped 19% this year. (CNBC)

The biotech hedge fund junior analyst interview prep quiz. (Forbes) 

Photo credit: New York by Taylor and Kevin is licensed under CC BY 2.0.

AUTHORSarah Butcher Global Editor

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