Morning Coffee: Harsh new reality for Goldman's senior investment bankers. Best place to work at Credit Suisse
Not long ago, the life of a senior client-facing investment banker at Goldman Sachs sounded pretty chill. Back in November 2016, when Harvey Schwartz was CFO, he said client relations require patience. - That deals cannot be hurried; sometimes they take seven whole years to come to fruition. That the important thing for Goldman is to be a trusted advisor, not a purveyor of transactions. - That "client connectivity" was the thing. Today, however, Marty Chavez is Goldman's CFO and Schwartz is Goldman's president and co-COO instead. Things at GS haven't been going too well, and the life of its senior investment bankers sounds...rather different.
In particular, the Wall Street Journal says Goldman has begun leaning on its investment bankers to cross-sell its FX and rates hedging products to their corporate clients. The WSJ says it's all part of Goldman's attempt to become a bit more like Citigroup (for example) by rebalancing its fixed income sales and trading business away from fickle 'flame-out' hedge funds in favour of nice steady corporates which trade in all market conditions and don't one day disappear. This is fair enough - it's the kind of thing relationship bankers at other banks are expected to do routinely. But at Goldman Sachs, where senior bankers have operated under a more boutique-like model of offering trusted advice as and when it's needed, pitching markets products on an ongoing basis is likely to go down like a lead balloon.
Separately, Credit Suisse looked sort of ok in the second quarter, especially if you worked in credit sales. The hottest place to work at the Swiss bank, however, is not in Brian Chin's securitization team, but the systematic market making group which Tidjane Thiam spoke very positively of at the bank's last investor day. This is reportedly to be spun out later this year and will operate as a standalone hedge fund thereafter.
Goldman Sachs also proposes to reform its fixed income sales and trading business by investing in cash credit trading and bolstering emerging markets trading. (Business Insider)
Goldman is working with a financial-data company to better understand what percent of each client’s trading business it is getting, and how it can sell more products to existing clients. (Wall Street Journal)
You're a keen young trader and are trading against your embittered old hedge fund client? Watch out you don't lose your job (if you work for Morgan Stanley). (Bloomberg)
Deutsche Bank's new London office suggests it plans to keep 5,000 of its 7,000 staff in the UK after Brexit. (Bloomberg)
But insiders say Deutsche foresees shifting about 4,000 jobs to the EU after Brexit. (Bloomberg)
Jes Staley has been interviewed by the FCA over his pursuit of a whistleblower. (Sky)
Poor Paul Tudor Jones: his assets under management have halved and he's sold his fancy Connecticut office. (Bloomberg)
Demand for online freelancers with virtual reality expertise grew far faster than for people with any other skill last quarter. (Bloomberg)
New York City employee caught using his work computer to mine bitcoins overnight. (Quartz)
If you sniff your partner's shirt before going into a job interview you will feel less stressed. (Google Scholar)
It's still perfectly legal for women in the UK to be asked to wear high heeled shoes at work. (BBC)