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Morning Coffee: Citigroup's budget method of enthusing analysts and associates. PE fund shares the love

African elephants in the Masai Mara National Reserve in Kenya

Young bankers are not just interested in money. Yes, you get paid inordinately well as a 20-something in an investment banking division, but who cares if your job seems devoid of meaning? Anecdotally, this is one reason why so many young bankers quit: They want to give something back.

Citi has hit upon a means of scratching this itch. The bank has been tweeting a video clip about a new program it's running in EMEA. Twelve of the bank's highest performing analysts and associates from across the region got to spend a month in Kenya helping local entrepreneurs. In the process, the young bankers were a) given exposure to Manolo Falco, head of corporate and investment banking at Citi in EMEA, and a major sponsor of the program, and b) able to offer help to real Kenyans involved in real small businesses, be that selling gas cylinders or cattle feed to running a sewing service and a beautician.

Falco says the program's been a huge success: "All of them have told me they would like to stay longer!”

"It's a totally new culture, totally new people and a totally new business," confirms one analyst, enthusiastically.

"I think it’s something that’s going to be a catalyst for my personal and professional growth," says another.

The Kenyans helped by the Citi juniors are equally keen: "I open my heart, they open up their hearts and we go on a wonderful journey," says the gas salesman.

"What can I say, these guys are so great and wonderful," says the cattle-feed merchant.

Sometimes, keeping people happy is about more than salaries and bonuses. With all banks trying to engage juniors whilst keeping a lid on costs, Citi's program is likely to be the first of many.

Separately, private equity fund KKR has an interesting method of allocating carried interest. Financial News reports that carries interest at KKR is shared across funds instead of allocated to an individual fund or to individuals based upon their performance.


John Thiel, the head of Merrill Lynch Wealth Management, is stepping down – or moving up? – to become the vice chairman of global wealth and investment management at Bank of America. (Reuters)

The U.S. Securities and Exchange Commission is forcing Credit Suisse to pay a $90m penalty and admit to misrepresenting how the bank determined a wealth management performance metric. (HedgeCo.Net)

In early September, a German magazine said Deutsche Bank might pay more than $2.4 billion, using Goldman’s settlement as a yardstick. So, why did the actual figure that the DoJ asked for ended up being $14bn? (Bloomberg)

The German government is negotiating with members of the U.S. Department of Justice to help Deutsche Bank settle the case against it related to the sale of toxic mortgage bonds. (Reuters)

Germany’s regulator did an audit of Deutsche Bank, indicted for allegedly concealing an Italian bank’s losses, and found that DB mismarked dozens of other transactions with a total value of 10.5bn euros ($11.8bn) in its own books. (Bloomberg)

Because Wells Fargo was perceived to be removed from Wall Street, it was seen as the banking industry’s best bet to resist regulatory proposals to cap pay and ban merchant banking, but the fake-accounts scandal weakens its ability to lead that fight. (New York Times)

Temasek, Singapore’s state investment company, has lured a veteran dealmaker away from Goldman Sachs to oversee its North American investment portfolio and boost its U.S. presence. (FT)

A hedge fund manager who previously worked at Goldman Sachs and Rothschild has left Odey Asset Management to set up a new firm called Latitude Investment Management. (Financial News)

Standard Chartered is growing its wealth management business in Asia and, after adding Barclays’ former head of global private banking Didier Von Daeniken, has now lured at least 10 Barclays relationship managers to join the bank’s Hong Kong office. (Bloomberg)

Henderson Global Investors’ takeover of U.S. asset management firm Janus Capital will test its ability to integrate and grow a business with $320bn under management while cutting costs simultaneously. Bill Gross, arguably the biggest fish caught up in the deal, is “supportive” of the merger. (FT)

British Chancellor Philip Hammond is in New York to meet with executives from Citi, BNY Mellon, Morgan Stanley and Goldman Sachs in an attempt to convince them not to cut headcount in London. (Financial News)

British-based banks are scrambling to finesse plans for life after the UK leaves the EU. (WSJ)

Frankfurt’s proposal to lure London-based financial services firms is both innovative and daring. (Politico)

An anti-establishment and euroskeptic Italian politician said that the E.U. should go easy on the U.K. during Brexit negotiations. (Bloomberg)

Hedge fund Marshall Wace was unimpressed with Commerzbank’s recently announced strategic pivot – so much so that it has made a multimillion-euro bet against Germany’s second-largest bank. It’s also bearish on the biggest. (FT)

Guess who made arguably the best, most perfectly timed trade of the year so far? If you said Jamie Dimon, then you are correct. (Bloomberg)

This company has caused farmers to earn more than bankers in some parts of Asia. (Bloomberg)

Quant hedge fund Two Sigma’s Women at Two Sigma (w@TS) and ouTSigma hosted Lesbians Who Tech (@lesbiantech) last night. (Twitter)

Reality TV star attacks banker with high-heeled footwear. (Page Six) 

Photo credit: Anup Shah/GettyImages

AUTHORDan Butcher US Editor

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