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Investment Bankers Flee Jobs Bloodbath In The City

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Telegraph 12/6/16

'Growing numbers of investment bankers are seeking sanctuary in other industries, as the latest round of cutbacks suggests the sector is shrinking permanently.

The investment banking sector is highly cyclical, with workers hired en masse when times are good, but fired rapidly in a downturn.

This time, however, increasing numbers of workers believe the industry’s woes are structural and the jobs may not return in such numbers next time there is an upswing.

New jobs per monthThe number of new finance jobs on the market is fallingSource: Morgan McKinleyJobs new to the marketMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMay2.5k5k7.5k10k12.5k15k

Banks including HSBC, Deutsche Bank, Morgan Stanley and Barclays have cumulatively cut thousands of investment bankers in London and around the world in recent months.

Recruiters at Morgan McKinley have seen an 8pc drop in the number of new financial services jobs on their books over the past year, with just 7,695 available.

At the same time the number of jobseekers has climbed by 36pc on the year to 13,454.

“There is an argument to suggest that the redundancies that have been announced over the last six months are contributing to the higher numbers of professionals now seeking new employment,” said Morgan McKinley’s Hakan Enver.

“At the same time, there are more individuals inquiring about opportunities outside of the investment banking arena, perhaps pre-empting the possibility of a Brexit.”

One particular driver of post-Brexit employment could be a surge in deal levels.

Fewer companies have floated on the stock market in the UK ahead of the referendum, or even raised money on the market.

Similarly, fewer have engaged in mergers or acquisitions – buyers and sellers, as well as other investors – are not keen to do big deals when the price could change with the vote on 23 June.

As a result, there could be a cyclical upswing in hiring after that date.

Other parts of investment banking are less likely to bounce back. Morgan McKinley estimates that banks’ revenues from trading bonds, currencies and commodities have fallen 49pc in the past five years and headcount has fallen 33pc.'

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Banks including HSBC, Deutsche Bank, Morgan Stanley and Barclays have cumulatively cut thousands of investment bankers in London and around the world in recent months.

Recruiters at Morgan McKinley have seen an 8pc drop in the number of new financial services jobs on their books over the past year, with just 7,695 available.

Reckon this is part of the reason why central London rents are falling:

bUByVGq.jpg

Source

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Can I have fries please?

Let me rephrase that - Investment bankers, in the main, have been exposed, time+time again, as a vast wealth destroying exercise (fro the compnay) and fee earning (for the bankers).

Have a look at the corpse that is Cobham:

http://markets.ft.com/research/Markets/Tearsheets/Summary?s=COB:LSE

Huge fees for advise in buying an American testing frim.

Bang - blows up in its face.

Huge fees is getting rights issue.

Why oh fcking why.

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Can they not go into BTL?

Was just thinking the same thing, buy up a few BTLs, rent em out, then just put the rents up to whatever level maintains required margin. I guess the required margin could vary person by person, but rent is rent, and if they need to go up, they'll bl**dy well go up. #tenanttax

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Can I have fries please?

Let me rephrase that - Investment bankers, in the main, have been exposed, time+time again, as a vast wealth destroying exercise (fro the compnay) and fee earning (for the bankers).

Have a look at the corpse that is Cobham:

http://markets.ft.com/research/Markets/Tearsheets/Summary?s=COB:LSE

Huge fees for advise in buying an American testing frim.

Bang - blows up in its face.

Huge fees is getting rights issue.

Why oh fcking why.

Beautifully put.

In fairness to them,monetary policy has played an enabling role.Whilst the drunk has ultimate responsibility for his alcoholism,the person who buys him his first drink after a dry spell isn't exactly guilt free.

So many businesses have been destroyed through selling off freeholds to 'invest the proceeds in the business' ie have a few rounds of bonuses.

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Spoke with a london banker at the weekend.

I kid you not, he sat and told everyone he was changing carear, wanted to head down a new path, more time with the kids etc etc etc.

Oh how everyone, bar him, laighed when I pipped up..."I heard you'd been made redundant".

Not nice people them bankers.

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The financial industry is a tax on the rest of the economy.

I prefer the term "life threatening tumour" extracting too much resource and endangering the host. :)

Yes, whenever one of the 'moderate' red/yellow/blue/purple politicians is on TV saying how important financial services are to the UK economy because they make up 12% of GDP it makes me think of a doctor telling their patient how important the enormous tumour that makes up 12% of their bodyweight is to their continued health.

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Generally speaking, whenever the City gets smacked down recession isn't very far behind.

Petrol prices shooting back up...thankfully no one is over extended and this wont affect them.

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the jobs will never return because computers!

This, etrading taking over jobs on the trading floor - these will most likely never come back (I work in electronic trading).

There's a confluence of reasons why this trend will continue - automation, 'race to zero' (more brokers competing on commission rates for fungible goods than clients out there), restrictions on prop-trading (volcker rule - investment banks aren't allowed to gamble with their own money any more).

It's been happening since the crisis and as the article alludes to most of it is structural decline rather than secular - don't think I've ever seen so many disappointed faces as on bonus day at the British investment bank on Canary Wharf I was working at 2 years ago!

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I've never understood why what are surely fairly mechanical activities such as floats and mergers require an army of highly paid people, I guess there is some degree of regulatory capture coming into play and you need some sort of licence to do these activities.

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Yes, whenever one of the 'moderate' red/yellow/blue/purple politicians is on TV saying how important financial services are to the UK economy because they make up 12% of GDP it makes me think of a doctor telling their patient how important the enormous tumour that makes up 12% of their bodyweight is to their continued health.

They financial industry's raison d'être, so they say, is to efficiently allocate capital.

I don't think they could have done a worse job over the past twenty years or so!

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Yes, whenever one of the 'moderate' red/yellow/blue/purple politicians is on TV saying how important financial services are to the UK economy because they make up 12% of GDP it makes me think of a doctor telling their patient how important the enormous tumour that makes up 12% of their bodyweight is to their continued health.

Funnily enough imputed rents are roughly 12% of GDP.Coincidence or just spooky?

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They financial industry's raison d'être, so they say, is to efficiently allocate capital.

I don't think they could have done a worse job over the past twenty years or so!

Are you suggesting that lending £100m+ to Fungus to bid up the price of already existing houses in Ashford may not have been a genius lending strategy justifying 7 figure bonuses for the talented bankers behind it?

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Speaking of Fungus, I recall reading that he expected the sale of his portfolio to be completed by the end of June this year. Anyone heard anything?

Also, is it me, or has he gone awfully quiet about the PCC election?

Sorry for wandering off topic.

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Did a google on him, everything is 2015 dated apart from this

http://www.kentonline.co.uk/maidstone/news/wilson-blocked-from-standing-for-93931/

All very quiet. Must be concentrating on the sale now.

No doubt we'll all be informed shortly that he's managed to sell.

Maybe a BrExit vote might scupper it...another great reason to vote out.

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