Bored of taking no risks, bored of receiving lower pay, bored with life and the universe, traders have begun complaining about their lot to journalists.
"There’s no sexiness, there’s no fun,” a former head of proprietary credit-arbitrage portfolios for Credit Suisse and Bear Stearns complained to Delaware Online. "There’s no intellectual intrigue, either," he added.
“Right now at work I’m making less risk decisions – and I enjoy taking risks,” complained George, a former head of investment-grade credit-default-swap trading at Deutsche to the same Delaware journalist. “If you’re in it for the game and the fight, the game’s over and the fight’s over,” George lamented. In the old days, George said there were phone smashing contests. Not any more.
Some traders like Deutsche's head of credit trading are reacting to all the passivity by joining hedge funds. However, there may be another option: working for Jefferies.
After leaving Deutsche, George joined Jefferies, which he said is still a fairly exciting place to work as a trader because it's less heavily regulated than big banks. Coincidentally, Bloomberg points out today that Jefferies paid its average employee more than Goldman Sachs for the first half of 2012: $228.4k per head, vs. $225.8k at Goldman.
Analyst calculates that Macquarie’s investment bank may need a 32% rebound in revenues this year, just to break even. (Financial Times)
Compensation costs at Goldman Sachs, JPMorgan and Morgan Stanley have been slashed by 22% over the past 12 months compared with 2009, according to their latest quarterly reports. Over the same period, however, non-compensation costs have actually risen by nearly 15%. (Financial News)
Bonuses at Barclays down 9% so far this year. (The Times)
Roger Jenkins is paying Diana Jenkins £150m as a divorce settlement. (Telegraph)
Evercore is paying more. (Marketwatch)
Stephen Hester says RBS faces a huge fine from the LIBOR scandal. (Guardian)
Credit Suisse appears to have transferred its Middle East private banking equity researchers to Geneva. (Reuters)
How two career couples stay happy. (HBR)
What to do if you’ve failed your CFA exam. (300hours)