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Morning Coffee: The seven year decimation of the Barclays bonus pool. Frankfurt for traders

There's a lot less frolicking in the liquidity at Barclays

By our reckoning, Barclays' investment bank has had seven CEOs since 2010. The newest one, Tim Throsby, turned up at the start of last month and reportedly wants to encourage the bank to take more risk. That's nice, but Barclays' senior bankers and traders would also probably quite like it if Throsby secured them some more pay.

This isn't going to happen. For 2016, Bloomberg reports that Throsby will preside over another 7% cut to follow the 7% cut in the Barclays' investment bank bonus pool last year.  This will mean that since 2010, when Bob Diamond was still in charge at Barclays investment bank, bonuses there have been reduced by 66%.

Admittedly, this has been partly mitigated by the generous 'role-related allowances' for senior staff introduced in 2013, but Barclays bankers will still be getting less for 2016 than for 2015, despite their friendly new boss. As if to rub salt in the wound, Barclays has been very happy to hire expensive senior staff (like Throsby) from J.P. Morgan - likely on guaranteed bonuses. The Wall Street Journal says senior Barclays bankers have lately been grumbling about the bank's habit of hiring from J.P. Morgan instead of promoting from their own ranks. At a recent town hall, CEO (and ex-J.P.M banker) Jes Stanley reportedly told Barclays' finest that the ex-J.P. Morgan people were there to "fix the bank for you."  Those J.P. Morgan bankers cost money. Still, it could be worse: Barclays' unhappy bankers could be working for Deutsche.

Separately, what if Frankfurt steals the City of London's finest treasures? Its trading desks. Goldman Sachs' Brexit contingency plan reportedly involves it shifting traders to Frankfurt and now Citi has clarified that it might do the same. Following yesterday's reports that Citi is thinking of moving hundreds of jobs out of London and into Frankfurt, the bank has clarified that the jobs in question are sales and trading jobs specifically and that Frankfurt could become a kind of trading hub. And who said clustering was only relevant in London?


Brian Moynihan is cashing in. (Bloomberg) 

Paris promises 7 new towers and 50 football pitches of space as it tries wooing banks from London. (Financial Times) 

Deutsche Bank has got a new female head of fixed income sales: Louise Kitchen. (Business Insider) 

The hottest hedge fund launch of the year is happening soon. (Business Insider) 

Jailed Libor trader Tom Hayes has raised $97k in crowdfunding and wants to overturn his ban by the regulator. (Bloomberg) 

“We have a half mil in the bank, and I panic all the time about not having enough.” (NYT) 

Avoid the pernicious effects of lifestyle inflation. (Distilleddollar) 

The more your children keep you awake at night, the less you'll earn. (SSRN) 

If you tell people you're too busy to watch TV, they'll think you're high status. (HBR)


AUTHORSarah Butcher Global Editor

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