Yesterday was the day that Jefferies, the U.S. investment bank previously known for its enthusiastic expansionism, announced its results for the second quarter. Bankers at other firms are advised to take note: as the first bank to report Jefferies is widely seen as a bellwether for the whole banking industry. Where Jefferies goes, other banks are likely to follow.
This being the case, it's unfortunate that profits at Jefferies plummeted 34% year-on-year in the second quarter, seemingly due to a 27% decline in fixed income sales and trading revenues over the same period. It's also unfortunate that Jefferies has gone from hiring to firing: 56 jobs were cut in the last quarter. And it's sad that pay per head in the quarter fell 11%, to $99k.
Jefferies results seem to say that banking profits are falling, that jobs are being cut and that pay is in decline.
If this all sounds a little depressing, then bankers can take solace in the fact that Jefferies' results may possibly be decoupled from other firms this time around. Breaking Views notes that Jefferies' second quarter tribulations haven't been reflected in the pronouncements coming from other banks.
It's a big day for bond investors. (Fortune)
Michael Cohrs, the former co-head of corporate and investment banking at Deutsche Bank, told the Banking Commission that: "London is a pretty neat place to live. These people make a lot of money. They want to spend their money in a pleasant place, and London is a very pleasant place." (ParliamentUK))
Vince Cable wants the new boss of RBS to have his bonus tied to small business lending. (Sky)
JPMorgan has promoted Ina De, formerly EMEA co-head of equity capital markets, as co-head of investment banking. (Finanical News)
It is pathetic and puerile to spend your time at the office wholeheartedly engaged in trying to spoil someone else’s day – but it’s not petty. (Financial Times)
Nomura’s Australian equities business has been ‘restructured.’ (WSJ)
How to salvage a disastrous interview. (Daily Muse)
The Daily Mail has published an online impotence calculator. (Daily Mail)
Grudge-holders perceive a hill as steeper than people who had been asked to recall a time they’d forgiven someone. (Stanford)