Morning Coffee: Ex-top UBS FICC structurer now penniless and unemployed. Things are looking up
If you're worried about what might happen if you lose your job in banking, you probably don't want to dwell too long on the case of Amit Goyal, the former (global) head of FICC strategies structuring at UBS.
Back in 2009, Goyal had just joined UBS in his global role after an eight year City career. He was earning 'up to £300k' ($435k) a year (which seems low compared to contemporary pay for senior structurers at Bank of America, but still). He had a PhD from INSEAD and had also worked for Barclays, Deutsche Bank and ABN AMRO, having played the game of skipping jobs every two years.
Seven years on, Goyal has no job and no assets save £19k in UBS shares. Penniless, he lives on government benefits. The UK's Financial Conduct Authority register indicates that he left UBS in September 2012 and he hasn't worked since.
Fortunately, Goyal is not entirely typical of the average banker who loses his job. In 2012, he tried and failed to claim that his then-wife, Ankita, hadn't married him but someone else with the same name. He also managed to rack up £650k of debts through an addiction to spread-betting. Ankita, who was once a headhunter and is now a beauty therapist, divorced Goyal in 2011 and yesterday succeeded in gaining control of his remaining assets.
Goyal's comprehensive fall from grace may be more dramatic than that of most former traders, but is nonetheless a cautionary tail. During an earlier divorce hearing involving Goyal, the judge noted that, "there was a constant circulation amongst the traders of information and tips about spread bets, with a strong peer pressure to participate...those who declined the invitation were laughed at as wimps." Goyal isn't the first UBS trader to fall foul of spread bets: Kweku Adoboli lost £123k on them too.
Separately, Reuters says things are looking up for the second quarter. Revenues in May were seemingly an improvement upon revenues in April and most bank CEOs have been making optimistic noises. FICC should be good, equities less so.
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