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If you are a junior banker at Goldman Sachs and channel your frustration with England losing football by thinking how abandoned you feel because you didn’t get a pay raise while the juniors at almost every other bank has done it, you might want to demean yourself.
Not only does it appear that there is no guarantee that Goldman will actually commit to raising wages from $ 10,000 to $ 25,000 like its rivals, but anonymous company insiders have made noise that they don’t want to employ the kind of people who want those kind of pay raises anyway.
Insiders spoke to the Financial Times. They say wage increases from rival banks have not gone unnoticed by GS, and the company is carefully monitoring not only salaries in banks, but salaries in other industries as well. James Esposito and Dan Dees, co-heads of Goldman’s investment bank, were said to have participated in divisional conference calls in which they said Goldman analysts would be rewarded for all their hard work in the August bonuses – implying that analysts could see a significant increase from last year, when total annual compensation (PATC in Goldman language) for the first and second years at GS in London was £ 78,000 and £ 98,000 respectively. according to recruitment firm Dartmouth Partners.
The same Goldman insiders told the FT they didn’t want to rush to raise wages in response to their rivals’ wage increases, in part because they might have to cut them again (“We shouldn’t participate in this game of raising and lowering wages every few months “), although there is no indication that it is possible, and in part because it will attract the wrong guys anyway. analysts:If you behave like that, you just end up with mercenaries. ”
Insiders also said they were not interested in hiring analysts who are particularly interested in working from home (“Goldman doesn’t want to hire people for whom the most important thing is how many days they have to spend in the office. Others can have them. “).
In other words, if you are a junior investment banker at Goldman Sachs and you are not satisfied both because you did not get a raise and because the company is making you working in the office again, then you’re probably the best one to keep this to yourself. – Vocalizing these two things will simply identify you as the wrong type of person.
Of course, one could suggest that this is a matter of control and that Goldman just doesn’t want to give it up. – In the hottest junior hiring market for two decades, juniors are suddenly empowered to make these kinds of demands and banks have to respond. Goldman might suggest he’s happy to do without demanding juniors, but it’s not entirely clear where he’ll find new ones ready to go in the short term.
Separately, US banks will release their second quarter results this week, and intelligence firm Coalition Greenwich has some opinions on what they are likely to say.
“2020 has been the best year for investment banks in a decade. We expect earnings to be lower this year, but even in a bearish scenario, they should still be much better than in the previous five years, ”said Michael Turner, Competitor Analysis Manager at Coalition.
Compared to last year, the big losers in the second quarter were the banks’ fixed income flow trading desks, says Turner. – They benefited from the “exceptional” conditions of 2020 which were not repeated. reStressed credit and structured finance have done better, but income from selling and trading fixed income is still expected to be down 35% from 2020.
By comparison, Coalition says the second quarter winners were blue chip equity derivatives bureaus and brokerage divisions. M&A and Equity Capital Markets (ECM) bankers have also likely performed well. Income from debt capital markets (DCM) is expected to be stable.
Meanwhile…
Head of Goldman’s Acceleration Unit: “Phe people who have been successful in other roles at Goldman Sachs are not always the same people who will be successful in starting a new business. It’s a very different skill set. “(McKinsey & Co)
Credit Suisse has a new unit called counterparty market risk. Executed by Amélie Perrier, Global Head of Equity Market Risk, monitor the trading positions of its main clients and their potential impact on the bank. (Financial Times)
Crispin Odey’s flagship fund, Odey European, lost 6.8% in June. (Bloomberg)
Melvin Capital Management ended the first half of 2021 down 46% after his clash with Reddit traders. (Bloomberg)
Point72 only returned 1.2% in the first six months of the year thanks to its investment in Melvin Capital Management. (Bloomberg)
Reddit traders against bankers and hedge funds: “There’s a little bit of anger, like ‘f * ck the system’. If there is a backdoor to wealth, I could take that door because the front door is closed. Bankers and the like basically closed this door to anyone who isn’t themselves. “(Reuters)
Credit trading is going electronic, but credit traders will not go away completely. “The future is not that algos take away flows from humans,” said Asita Also, responsible for systematic market making and data science. “They are humans enhanced by algorithms and automation. “(Bloomberg)
Gareth Southgate is kind of a technical manager. While his predecessors are known to take sightseeing trips instead of analyzing the opposition, Southgate spent a Christmas party talking about Wyscout, a technology platform that allows coaches to watch recorded matches from around the world, as well as statistics detailing the action. (Financial Times)
Jillian Lavender helps traders meditate. We go to a church near his office every afternoon. “He says, ‘I arrive at around 4:30 p.m. and start to complain.’ He goes to do his meditation, he comes back to work and he says, “It’s like someone put a bullet in my arm. He has a great sense of clarity and energy, while people around him drink Red Bull.” (Time)
Expats are fed up with Singapore. Vaccinations are one reason – Singaporeans aged 12 to 39 were vaccinated before expats under 40. “This is just one of the many ways Singapore has shown that it is not very friendly with expats and that they will always prioritize their own citizens over foreigners. (Financial Times)
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