Financial News thinks there will be more redundancies later this year. Editor Ben Wright says the lack of staff attrition is to blame.
Wright has spoken to the head of European capital markets at: “one large bank”, who says his firm budgeted for an attrition rate of 8% but the actual attrition rate is 0%. “
“No one is moving, no one is retiring, no one is seeking a new career, no one is being poached,” complained the unnamed head of European ECM.
In the circumstances, you’d think no one would be hiring: revenues aren’t growing and there’s no need to replace departed staff. However, this wouldn’t be true: there is hiring. There is even more hiring than before.
Recruitment firm Morgan McKinley reports today that hiring is up: it calculates there were 3,339 new jobs on offer in the London financial services market in April, an increase of 19% on March. Recruitment is particularly vigorous in the areas of: risk, compliance, regulatory and change management, said Andrew Evans, Morgan McKinley’s COO.
We also note that several places have hiring announcements out today. Take Russian bank Troika Dialog, which wants to increase headcount 40% this year: it’s just hired three people, at least one of whom was previously based in London. Take Schroders, which has just hired two asset managers from UBS. And take Insparo, a new emerging markets fund, which has been building an investment team.
Forget Ina Drew. Forget Bruno Iksil. Forget Spain. It’s not that bad - as long as you have skills required by a Russian bank, work in fund management, or specialise in regulatory change.
It’s also pretty good if you work in management consulting. (Financial Times)
Cuts come to electronic trading? Barclays has got rid of its head of electronic distribution, Danielle Ballardie. (Financial News)
Lloyds has appointed a consumer banker as head of its wholesale banking arm. (Banking Times)
"We don't make huge bets," said Jamie Dimon, in January. (Marketplace)
The Volcker loophole is known as portfolio hedging, a strategy that essentially allows banks to view an investment portfolio as a whole and take actions to offset the risks of the entire portfolio. (NYTimes)
Ina Drew retires, possibly with stock intact. (Marketplace)
"Ina Drew has been a great partner over her many years with our firm. Despite our recent losses in the CIO, Ina's vast contributions to our company should not be overshadowed by these events," said Jamie Dimon. (Marketwatch)
Who is Matt Zames? (eFinancialCareers)
The $2bil loss is ~0.5% of JPM’s total capital. (Economic Musings)
Has Wells Fargo got a $230bn CIO? (DealBook)
Why you should do your financial services MBA at Wharton. (Poetsandquants)
Man applies to be social media strategist at Goldman Sachs. (MartinPasquier)
Horlick’s car is a Prius. “I’m trying to save the planet. I feel it’s good for the soul to have a period of austerity.” (Financial Times)