During the analyst call for the Goldman Sachs' Q3 results, people couldn't stop asking about its hiring plans. Is it because of MiFID II? Are you just hiring sales people? How are you going to hire all these people when European investment banks are ramping up too? Marty Chavez, the bank's CFO, just batted the questions away and spoke about president and COO Harvey Schwartz's presentation in September, during which he said experienced hires were double that of last year, 80% of people accepted job offers and that it had plans to recruit strats, market making and sales staff.
Morgan Stanley CEO James Gorman, by contrast, simply spoke about a relatively modest target of $1bn per quarter in fixed income revenues and and brushed off any likelihood of expanding such its "volatile" FICC business - even after it cut 25% of headcount just two years ago. Across its markets business, Morgan Stanley made more than Goldman Sachs - $3.1bn compared to $2.7bn - and the man leading that effort was Ted Pick.
Pick is not a hugely public figure but, as the FT points out, he's "being groomed" as a possible successor to Gorman. Peck, who previously headed up Morgan Stanley's equities business before being handed expanded responsibility for its fixed income business, was the brain-child behind cutting back the bank's fixed income teams.
Pick, who has been reprimanded for sending out sweary emails in the past, is in pole position for the CEO role ahead of Jonathan Pruzan, chief financial officer; Dan Simkowitz, investment management head; Andy Saperstein, wealth co-head; and Rob Rooney, head of international. “Ted just epitomises all the things we love about the place: very smart, very client-focused, fiercely loyal, but a fun guy to have around,” one former colleague told the FT.
Maybe so, but he also has an keen eye for cost-cutting. When Pick, together with his lieutenant Sam Kellie Smith, cut 25% its fixed income headcount, he eliminated staff in FX because so much was traded electronically, cut the London-based credit team which was in a quiet period and drastically reduced its commodities footprint, which it decided was in more of a structural decline, as well as shaking up pay.
He seems like a shoo in when or if Gorman decides to leave in five or six years, one senior banker told the FT: "Unless he shoots himself in the foot."
Separately, Financial News has its own version of #MeToo for the financial sector. Having canvassed its readers, 75% of the 181 respondents in the City said that they had experienced sexual harassment at work. The sample size might be relatively small, but it's a shockingly high proportion who have claimed everything from an drunken grope at a Christmas party to attempted rape.
We've reported our own accounts of women who have been sexually harassed by higher-ranked male colleagues and felt powerless to complain to HR or their superiors, but it appears much more widespread. 'Justine' who works in asset management, told FN that "the finance director grabbed my breast and stuck his tongue down my throat, in front of my friends at my leaving do" and then walked off saying "I've always wanted to do that". Accountant Emma said that a male colleague “pressured me to give in to his will” after months of aggressive, sexual text and picture messages. In each account, concerns of the victims were either laughed off, not given credence by HR or never reported due to career concerns.
J.P. Morgan has taken on a new AI program to give it a full view of the trading floor. "Automation of tasks doesn’t equal automation of jobs.” (Bloomberg)
How to get a phone call from Lloyd Blankfein (Quartz)
How much is a research analyst really worth (Gadfly)
Deutsche Bank has hired Neel Laungani as head of its TMT investment banking business in Asia-Pacific (Reuters)
Darlene Pasquill, the head of Americas equities business at Credit Suisse, has departed (Business Insider)
Mark Johnson, the former head of HSBC's FX business, has been found guilty of defrauding a client, and could face up to 20 years in prison. (Financial Times)
The Wolf of Wall Street on ICOs: “Probably 85 per cent of people out there don’t have bad intentions, but the problem is, if five or 10 per cent are trying to scam you, it’s a f**king disaster.” (Financial Times)
Banks are moving Asian trading out of London to Hong Kong (Financial Times)
The inventor of a hyper-realistic sex doll could soon use a 3D printer to create "children" (IB Times)
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