With luck, the eurozone will implode soon, prompting another banking crisis and rescuing the FSA from the insidious effects of severe staff leakage.
This week, it transpired that Alexander "JJ" Justham, head of the wholesale markets division, had left the FSA for reasons personal but unknown. The Financial Times pointed out that his is the latest in a "flood" of departures (including Thomas Huertas, who's left for E&Y).
Today, the Wall Street Journal points out that the FSA has lost "more than a dozen" senior regulators and "a parade" of more junior staff over the past year and is therefore less effective than it might otherwise be. FSA people are apparently leaving for the private sector and are concerned they might be paid less once they're fused with the Bank of England. Those left behind are apparently, "exhausted."
The outflow might, however, be mitigated if another serious banking crisis erupts. The WSJ points out that the FSA's turnover rate fell to 4% during the last crisis. It's now returned to its pre-crisis level of 11%.
"Clients are inundating us with messages of support, and placing new business with us, showing how much they want us to succeed," wrote Carsten Kengeter. (Financial Times)
Carsten Kengeter, UBS's head of investment banking, told employees the Zurich-based lender is "doing everything" to address shortcomings in its risk controls. (Bloomberg)
We don't think that Siemens taking money out of SocGen is in itself such a huge thing. (Alphaville)
Note to management - if you want to hire a back or middle office guy to do a front office job, hire them from a different bank. (Bronte Capital)
Vince Cable wants to be friends with UK banks now. (Bronte Capital)
Vince Cable says UBS is a rogue institution. (Financial Times)
Xenia was offered a job by JPMorgan and turned it down. (Business Insider)
Everyone wants to work for JPMorgan. (NY Post)
Why you might want to think twice before going on a cruise in North Korea. (Boston Globe)