Morning Coffee: Hiring spree brings 45 year-old bankers back from margins. How many jobs would move from London?
Imagine: you're a semi-retired 40+ banker, sitting about on your organic farm, wondering about your organic beets, when you get a call from an old colleague. - Suddenly, you're back in fashion, and not in a low-key accessorizing way. You are the main item and you're wanted back in town, now.
This is seemingly how it's been for restructuring bankers. "We are putting the band back together,” Ronen Bojmel, a 48 year-old senior managing director in the restructuring team at Guggenheim tells Bloomberg, "When a wave hits, you want to make sure you are in the right seat with the right group of people.”
Guggenheim has hired eleven restructuring bankers in the past three years. Six of the new hires are old hands from Wasserstein Perrella & Co., the firm where Bojmel worked previously and began his career, aged 29. The trouble is that trusty restructuring professionals are hard to find. "Firms are hungry for experienced restructuring professionals, who are increasingly in short supply,” says Richard Shinder, who was hired in March to build out Piper Jaffray Co.’s restructuring team. -“You need to reach deep into your Rolodex to find people you know who are capable, and you need to move fast.”
Restructuring is a cyclical business, and experienced restructuring bankers - who only a few years ago had ample time for contemplation, are heavily overworked as we near the peak. “People are hanging out in the lobby, baggy eyed, coffee in hand,” says the head of restructuring at Deloitte. According to the head of restructuring at PJT Partners, things can only get worse. - “Many risky debt deals have been done as people chased yield -- and it’s a matter of time before many of them blow up,” he predicts.
Separately, precisely how many jobs would banks move from London in the event of a Brexit? Potentially, a lot. Bloomberg cites lawyers who say that London-based firms which lose passporting rights would need to move enough of their operations into the European Union to allow local regulators to properly supervise their activities after a Brexit. How much is 'enough'? The lawyers don't say - but a few compliance professionals and a handful of salespeople probably won't suffice.
Pimco is cutting 3% of its global workforce. Most of the staff being cut are in operations, technology and client-facing roles. (Financial News)
J.P. Morgan and Goldman Sachs will be worst affected by a Brexit. (AFR)
Deutsche Bank shares just fell to their lowest level EVER. (FT)
David Cohen, head of EMEA flow trading at Citi, is leaving. (Bloomberg)
UBS is busy hiring for an internal hedge fund. (Business Insider)
UBS and Credit Suisse probably need more capital, again. (Reuters)
A former senior Morgan Stanley investment banker just got a job working for a (probable) client. (Bloomberg)
Point72 has a "no fly zone" of organizations it will not hire from. Visium Capital is on it. (Business Insider)
Advisory boutiques need to cut pay. (The Australian)
A group of prominent female partners at Goldman Sachs is pushing into the private equity business. (NY Times)
CIMB Group laid of 15 cash equities and investment bankers in Asia. (Finance Asia)
A dirty and unstimulating office will dull your cognitive capacity for some time. (Medical Express)