Late Lunchtime Links: Carsten Kengeter to set up a hedge fund?

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Carsten Kengeter, the ex-Goldman Sachs fixed income banker who joined UBS in 2008 and presided over hundreds of hires in UBS's fixed income sales and trading business, is off. The Financial Times suggests that Kengeter is thinking of, "setting up or joining a hedge fund." Market rumour has it that Kengeter may set up this hedge fund using assets provided by UBS. Kengeter declined to comment.

Kengeter's departure can be read as another victory for Andrea Orcel, whose arrival as co-head of UBS's investment bank in May 2012 signaled the start of Kengeter's demise. In October last year, UBS said it was closing areas of its fixed income business and making 10,000 people redundant before 2015. At the same time, Kengeter was made responsible for UBS's non-core business and for running down the fixed income assets UBS wouldn't be dealing in in future. Orcel was made sole head of the investment bank.

If Kengeter sets up a hedge fund, some of UBS's remaining fixed income traders may like to join him. Between the end of September and the end of December, UBS made only 600 redundancies in its investment bank, leaving another 9,400 still to go. Headhunters say another round of cuts is expected next week.

In the meantime Orcel has said he intends to strengthen the investment bank with additional hires. This week, it emerged that Edouard de Vitry, co-head of UBS’s financial institutions group is leaving the bank. Javier Oficialdegui, who was hired by Andrea Orcel, will now be sole head of FIG. Orcel's people have the upper hand.


Sam Molinaro, ex-Bear Stearns CFO, is taking on Kengeter’s role as Head of Non-Core and Legacy Portfolio at UBS. (Dealbook) 

BNP has suspended an agricultural commodities fund after being reprimanded by Oxfam. (Reuters) 

Barclays will no longer be trading agricultural commodities. (WSJ)

The core of Mr. Jenkins' plan rests on his claim that he can cut costs and shrink the balance sheet while simultaneously boosting revenue. Investors should remember that this was Mr. Diamond's plan, too. (WSJ)

Antony Jenkins refused to back Rich Ricci yesterday. (Financial News)

Barclays’ shares rose to a two year high yesterday. (Bloomberg)

Staff at director level and below at Barclays will see an dramatic increase in the amount they can take home in cash, rising from £65,000 in 2011 to £185,250 in 2012. (The Times)

In the fourth quarter, Barclays’ fixed income trading revenues were bigger than Deutsche’s. (Financial Times)  

Morgan Stanley has tripled the number of people it has in Mexico since 2010. (Bloomberg) 

Berenberg hired 9 people in London last year. ( 

ING is cutting 2,400 jobs, but not in the City. (BBC)





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