Morning Coffee: Citigroup managing director's optimistic reaction to being laid off. The Credit Suisse people most likely to be welcomed by UBS
If you lose your banking job in this market, you may not find a new one easily. As Wall Street headhunter Jeanne Branthover informed the Financial Times last week, even the 'one in, one out' dynamic has begun faltering in bank recruitment: "Now even though one is out, it does not mean they are getting approval to hire a replacement.”
This is not deterring Citigroup (ex) managing director Matt King from seeing the bright side of his recent layoff. King, who spent nearly 20 years after five years at JPMorgan and was a global markets strategist for the bank, appears to have been among the those unexpectedly eliminated during Citi's large but stealthy job cuts.
He's not lamenting his lot. Instead, King announced his enforced departure on LinkedIn with a photograph of all the shiny new books he plans to read in the garden. These include: Ultra-processed people (a book on processed food); The crisis of democratic capitalism (by Martin Woolf); and The world according to colour (by art historian, James Fox).
King, who is in his mid-40s and who speaks four languages fluently, is using his time off to establish his credentials as a polymath. "As many people have pointed out, being made redundant can often prove an amazing opportunity," he reflects.
It's easier to embrace unfortunate circumstances with two decades of bonuses and a house and garden overlooking the river behind you, but King's approach may still have lessons for laid off juniors wondering how they'll pay £3k a month rent for a small flat in central London. If there are no jobs (for the moment), don't beat yourself up: cut costs and spend the summer on self-reflection. You may end up doing something completely different: another ex-Citi MD, Charles Pelham, tells King he is now "loving being a restaurant reviewer."
Separately, as UBS prepares for some "massive downsizing" of Credit Suisse, the appointment of ex-Credit Suisse banker Mirko Bianchi as UBS's new treasurer offers a few insights into what it might take to survive. Bianchi may have been working for Credit Suisse most recently, but as FiNews points out, he spent nine years working for UBS until 2009. He was also known to UBS CEO Sergio Ermotti from the two men's time at Unicredit. - If you want to stay on, it will help to be a known entity.
Barclays is still busy hiring people in Asia, especially for its prime finacing business. “We’re investing when people are scared.” (Bloomberg)
“There’s been a lot of focus on the cuts, which have rarely gone above 5%, but banks are also hiring from a much more liquid market. I’ve rarely been so busy.” (Financial News)
Rothschild expects it profits to fall 50% (which might explain why it's been making cuts). (Bloomberg)
Credit Suisse only set aside $35m to cover Archegos costs. The Fed’s fine alone could be as much as $300mn, while the PRA could impose a penalty of up to £100mn. (Financial Times)
Credit Suisse's Singapore private bankers are moving into UBS's offices. (Bloomberg)
Credit Suisse and UBS are going to have to make some difficult choices between their equity research analysts. UBS occupies sixth and Credit Suisse eighth place in Institutional Investors All-America Research Team ranking. (FiNews)
Crispin Odey has lost his status as a “fit and proper” individual in the City of London. (The Times)
India is the new China for equity research jobs. (Bloomberg)
The highest median pay in America ($415k) is on offer at a Vici properties real-estate investment trust with a portfolio of casinos and hotels. (WSJ)
Canaccord Genuity cut spending on compensation by 25% in the year to March. (Bloomberg)
A man spent 60 hours making his girlfriend a replica Birkin bag as a token of his appreciation. His fingers were bleeding. “It just made me realize, ‘Whoa, Alex really cares about me.’" (WSJ)
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