Morning Coffee: UBS and Deutsche chasing new breed of banker. Worst of all worlds at Wells Fargo
As last week's management shakeup at Goldman Sachs' securities division helped clarify, traditional salespeople are being edged out. In future, clients will have direct access to data-rich systems like Goldman's SecDB to help them devise trading strategies. Salespeople will take a back seat: their role will be to steer customers' use of the overall system, not to hold their hands trade-by-trade.
However, giving clients access to new data-generated trading tools is one thing. Making sure they actually understand what those tools are saying is entirely another. In the new world, interpreting and presenting data to customers in a comprehensible but detailed way is the Holy Grail. 'Data visualization professionals' who can achieve this are the new hot.
Interestingly, therefore, Deutsche Bank and UBS are both in the market for data visualization types.
Deutsche is hiring 40 people to work in a new Dublin-based technology lab called 'the Hive'. Deutsche's chief operating officer, Kim Hammonds, says the Hive will "generate insights" that will enable Deutsche to 'understand and serve its clients better.' The Hive will be reportedly populated with specialists in data science, visualization and analytics.
At UBS, chief investment officer Mark Haefele already has 200 data scientists and data interpreters in his team and he wants more. Haefele told Bloomberg that he aspires for the bank's data visualization tools to be used directly by its customers as they generate their own investment strategies. Forget old-fashioned salespeople: the new frontier is generating pretty products that clients want to use. If you can do that, UBS and Deutsche want to hear from you.
Separately, a former saleswoman at Wells Fargo in Pennsylvania has detailed just how bad things were there. Wells Fargo employees stand accused of creating two million fake deposit and credit-card accounts to boost their bonuses. 52 year-old Julie Miller, explained how this came about. “It became a living nightmare,” Miller told the Charlotte Observer. “They almost doubled our goals and decreased our incentive pay." Right.
Shares in Deutsche Bank rose 4% following reports that the bank's fine from the US department of justice for allegedly mis-selling mortgaged backed securities before the financial crisis would be a mere $2.4bn. Goldman was fined $5.1bn for the same infraction, but it had a bigger mortgage securitization business. (Financial Times)
Oliver Hemsley, son of a pig farmer and Numis CEO, is stepping down and being replaced by two thirty-somethings.“Oliver can be tricky. He has a strong opinion and he’s not afraid of showing it. But he’s more often right than wrong.” (Financial Times)
Forget hedge funds, it's time to work in private equity. (Gadfly)
German Finance Minister Wolfgang Schaeuble is worried that the new global capital requirements will punish European banks. (Bloomberg)
The total amount of available top-level office space in Frankfurt, Paris, Dublin, and other pretenders to London’s throne is around 7 percent of the Square Mile (plus Canary Wharf). (Politico)
How Phillip Hammond, UK Chancellor, plans to play Brexit: 'With a trade deficit with the EU running at almost £70 billion, the U.K. has time on its side and can secure access to the EU single market outside the club.' (Politico)
'Flash crash trader' Navinder Singh Sarao is still not going quietly. (Telegraph)
Beware the employee ID badge which monitors exactly what you do at work. It's been tested on bond traders. (Washington Post)
"There’s absolutely room for a brown shoe if you’re at Santander or if you’re at one of the Italian banks that’s still barely solvent — where you can wear all the brown loafers you want to meetings." (Financial Times)
Photo: Mike Powell, Getty