Morning Coffee: 50 year-old traders' warnings for today's 25 year-olds. Why you work so hard

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Welcome to the start of a week in which - if you work in London in particular - things could get 'interesting.' Just how interesting is suggested in a note from SocGen. Bloomberg reports that the French bank has dispatched a missive to clients cautioning them that it may have a few issues during and after the UK's referendum on membership of the European Union. “We may not be able to provide usual levels of liquidity and pricing in general and on electronic markets in particular," says the note. "Your orders could be filled materially away from requested levels due to potential market dislocation.”

Scaremongering? Seemingly not. Bloomberg has also amassed testimonials from veteran traders who were working during Black Wednesday in 1992. They do not paint a pretty picture. “Our central bank desk struggled to get through to the bank as the phone lines were jammed," says John Glover, a Toronto-based trader who was running a large GBP/USD book on Black Wednesday. David Woolcock, then Treasury Manager for Credit du Nord in London, recalls that money markets were "barely functioning" on Black Wednesday. And Pierre Lequeux, a prop trader at BNP Paribas in 1992, says the market "really gapped" back then and that volatility this week could be even worse because markets can be accessed more quickly.

It's not all bad news though. The veteran traders, most of whom are likely to be in or approaching their sixth decade, also have fond memories of Wednesday 16 September 1992: ‘‘Our GBP options book made more in two weeks than they ever had in a year,” said Glover. Today's novices clearly have something to look forward to.

Separately, there's a reason you work 70 hour weeks. New research suggests it's probably because there are colleagues earning a lot less than you. Professions with the biggest gap between high and low earners have the longest working hours according to a new study by the (potentially biased) Washington Center for Equitable Growth. "This intra-occupational income inequality means professional offices are able to demand longer hours even from highly paid workers, and these workers are willing to oblige," notes the Week in its coverage of the study.


The volume of deals involving UK targets is down almost 70% this year compared with the same period in 2015. (Financial Times) 

UK ECM deals are down $8bn in the first half of 2014 and 2015, to $3.3bn so far this year. (Guardian)

Reasons to work for a Swiss Bank (and get paid in Swiss francs). (Reuters)

A reminder: when Mohamed El-Erian worked for Pimco, he arrived in the office at 4.30am. (Financial Times)

28 year-old British voter: “There are a lot bigger things than worrying about bankers and their jobs.” (WSJ)

The EBA will leave London if the UK leaves the EU. (Reuters) 

The FCA's new senior manager's regime has pushed up the pay of 3,000 people in the City of London. (Financial Times)

In an unusual move for the UK market, Morgan Stanley hired new UK M&A chairman from a law firm. All the senior M&A bankers are working for boutiques. (Financial Times) 

Credit Suisse will soon launch 'Clade', a sort of Facebook for the ultra-rich. (FiNews)

Is UBS about to sell its US wealth management unit? (NY Post)

J.P. Morgan's head of global banking in Australia says changed to junior's weekend working hours have pervaded the entire system and led everyone to work differently. (Australian Financial Review) 

BNP Paribas is cutting 150 jobs in the Middle East, including its COO. (Arabian Finance)

Deutsche Bank’s blockchain project is only 24 months from being ready to launch. However, the regulatory and legal framework to deploy it is more like five to ten years away. (Computerworld) 

25 year-old call-girl allegedly hired by ex-Goldman Sachs banker said to earn more than most young bankers. (DailyMail) 

Questions you must not ask in a job interview: "How many other people are you interviewing?" (Forbes) 

Photo credit: pidjoe

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