This week begins with another prediction of doom: strategy consultancy Roland Berger foresees another 40,000 investment banking job cuts in the coming years (on top of those announced already). This follows all sorts of potentially spurious forecasts of mass redundancies last week and the week before.
If you work investment banking and you don't want to reinvent yourself as a US airline pilot or an employee in the hi-tech industry, where there are predicted to be shortages of tens of thousands of skilled workers in the near future, what should you do?
Make yourself known to BNP Paribas.
BNP Paribas has been recruiting senior investment bankers in London
Since October, our research reveals that BNP Paribas CIB has hired quite a few experienced staff from rivals. This follows the recent revelation that the French bank has finished de-leveraging and has already made 90% of its planned investment banking redundancies.
Overall, BNP has added 41 FSA Approved persons since October 1st.
Around 13 of these are senior bankers with experience at rival firms. They include: Stefanos Theodorakakos, an FX trader from Morgan Stanley; Robert Curtis, the former head of prime brokerage at Nomura; Joanna Hewazy from BarCap; Alistair Graham from Credit Suisse and (more recently) Execution; Prateek Datta, a financial strategist from RBS; Vladimir Ivanic, a corporate financier from Houlihan Lokey; Jose Franco, the former head of global liquidity at BofA's corporate bank; Lukasz Sektas, an equity derivatives trader from Citi; Julien Raffelsbauer, an executive director from Goldman Sachs; Sélim Tuna, an investment banking director at UBS; and Marco de Rossi, former in-house M&A director at Aviva Insurance.
13 new front office hires may not sound a lot, but many banks stop hiring for the front office in the fourth quarter and BNP has been more active than rivals. We understand the French bank has been scoping out the fixed income bankers ejected from UBS.
Standard Chartered has also been hiring a handful of senior staff, including: Jim Boland, former head of base metal sales at Natixis and Darren Botha, a precious metals trader from HSBC. Morgan Stanley has also been bringing on a lot of new FSA Approved persons, but the vast majority of Morgan Stanley's recent hires are analysts or associates.
Away from BNP and Standard Chartered, we detect a resurgence of interest in equity researchers. Financial News reports today that Paul Huxford, head of research at JPMorgan has hired four new senior equity researchers. They are: Jose Asumendi from Baader Bank as head equity research in the automotive sector, Dominic O’Kane from Liberum Capital to head metals and mining research, and David Perry from Goldman Sachs to run research on the aerospace and defence sectors. Perry is said to be on gardening leave, suggesting JPMorgan may have paid a guarantee. Last month, it emerged that Citigroup had hired Farooq Hanif from Morgan Stanley for insurance equity research. Hanif was also said to be on gardening leave, suggesting he too may have been induced to move with a guaranteed bonus.
Things are bad. However, they're not completely terminal.