MSF

Former J.P. Morgan Risk Officer Takes Advisory Role

Finance Career News and Advice by FINS.com - May 15, 2012 1:38pm

Irvin Goldman, who was replaced yesterday as chief risk officer of J.P. Morgan's Chief Investment Office, will stay on as an adviser to the new head of the CIO, the bank said.

Following a $2 billion trading loss on credit derivatives in the CIO, Goldman was replaced last night by Chetan Bhargiri, a managing director of market risk at the investment bank, according to an internal memo reviewed by FINS. Goldman had been named chief risk officer of the CIO just three months ago, according to people familiar with the matter.

Goldman, based in New York, will play an advisory role to Matt Zames, who yesterday replaced Ina Drew as chief investment officer at J.P. Morgan. Goldman's title and responsibilities may shift over time, a person familiar with the matter said.

Goldman had been put in place in February by John Hogan, who himself became chief risk officer of the entire firm in January.

Goldman wasn't available to comment.

J.P. Morgan is reassessing its personnel in the wake of the $2 billion loss. Zames, the new head of the CIO, has brought in his own team, naming Rob O'Rahilly to lead the CIO team in Europe, Middle East and Africa. Marie Nourie will become chief financial officer of the group. Christopher Chan will keep his position leading the CIO in Asia, but will now report to Zames.

Goldman joined J.P. Morgan in September 2010 as a managing director in the CIO, according to Bloomberg News. He had served as head of debt capital markets, among other positions, at Cantor Fitzgerald, the New York-based financial services firm. He joined Cantor in June 2003 and left in 2007. He later founded a consulting firm based in New York called IJG Advisors LLC.

The New York Post reported in October 2007 that Goldman left Cantor Fitzgerald after his unit recorded losses in mortgage and asset-backed trading. A spokesperson for Cantor Fitzgerald declined to comment.

Prior to Cantor, Goldman worked for 13 years at Credit Suisse First Boston and was in charge of sales and trading for interest-rate products, according to a Cantor Fitzgerald press release from July 15, 2003.

His LinkedIn profile says he graduated from New York University with a bachelor's degree in economics and management and an M.B.A in 1984.

Write to Julie.Steinberg at julie.steinberg@dowjones.com

Categories: MSF

It's Not About the Woman

Finance Career News and Advice by FINS.com - May 15, 2012 5:30am

When a woman fails on Wall Street, (Zoe Cruz, Sallie Krawcheck, Erin Callan), it's often tempting to draw sweeping conclusions about the evolution of women in the finance industry. Often, this approach is warranted: No female CEO leads a bulge-bracket bank and women generally comprise around 20% of managing directors, one of the highest ranks in finance.

Because there are so few visible women in finance, when one steps down or is forced out, the move is automatically suffused with more gravitas than if a man had done so.

Still, it's prudent not to confuse gender politics with plain old screw-ups. Ina Drew leaving J.P. Morgan is a perfect example. Under her direction, the Chief Investment Office lost $2 billion due to a failed trading strategy. That she offered her resignation isn't a sign that yet another woman has fallen victim to the whims of a testosterone-driven environment. Rather, it's an acknowledgment that when you make a mistake, regardless of gender, you have to pay the consequences.

Perhaps this turn of events might be comforting to the legion of women on the Street who want to be treated like everyone else. While it may be true that women have to work harder to overcome bias, at the end of the day, the workplace is, in certain aspects, a meritocracy. Do a good job and you won't get fired. Do a bad job and you'll lose your head, whether you're a man or woman.

Goodbye Goodbye (FINS)

When leaving your job, don't burn any bridges by making your criticisms public. You never know whom you're going to cross paths with in life.

New Seating Chart (Dow Jones)

Matt Zames, Ina Drew's replacement at J.P. Morgan, is wasting no time bringing in his own team.

Seating Complete (FT)

Now that he's no longer tired, Lloyds Chief Executive António Horta-Osório has finished building his A-team to help him turn around the bank.

Where to Work (Poets & Quants)

A new survey of M.B.A. students finds they're less likely to work at big consultancies like McKinsey. Finance firms, on the other hand, are still a draw.

Chump Change (New York Observer)

If you're worth a staggering $1.5 billion, you can afford to buy a $52 million apartment at an exclusive address in New York City. Howard Marks of Oaktree Capital, come on down.

Reining It In (FINS)

Don't forget how important proper email etiquette is in the workplace. Whatever you do, refrain from multiple exclamation points. They hurt the eyes.

Common Forgery (SmartMoney)

Let Yahoo's Scott Thompson be a lesson to you. If he can't get away fudging his academic credentials, neither can you.

Buzz Around the Office

Best Friends at the Window (Buzz Feed)

These pairs and trios are content to watch the world go by, so long as they're together.

List of the Day: What They Mean

Here a few translations of some common interview questions.

1. Tell me about yourself (tell me why you're the right person for this job).

2. Explain the organization's mission (explain why you'll be an ambassador).

3. Give me a few questions of your own (demonstrate you actually care).

(Source: The Daily Muse)

Categories: MSF

Hiring at Nomura, Hedge Funds and in London

Finance Career News and Advice by FINS.com - May 14, 2012 1:53pm

Tip: Party at Nomura in the U.S.

Nomura has its eyes set on U.S. expansion. The Japanese bank will hire more than 60 managing and executive directors for its investment banking unit within the next three to five years to help it become a top 10 investment bank. The hiring plans come as the bank prepares to move into larger offices in midtown Manhattan next year.

Tools to get the job:

The Perfect Investing Banking Resume

What to Wear to a Finance Interview

Networking Your Way to a Job

Tip: Trading the Street for Funds

Goodbye, Wall Street. Hello, hedge funds. Top-producing credit traders are fleeing the Street into funds that can dole out heavy compensation. Nearly 24 top traders have left banks over the past 13 months to go to hedge funds, investment firms and smaller banks like Jefferies. Tightened risk appetites, increased regulation and lower compensation make the Street a dull place for traders who want to excel.

Tools to get the job:

The Perfect Hedge Fund Resume

The Year of the Hedge Fund Marketer

Volunteer Your Way to a Job

Tip: Turnaround Time in London

Job vacancies in London's financial services industry increased to 3,455, a 9% increase from March. The figure is still a decrease from 27% a year earlier, but we'll take what we can get. Areas for hiring include interest-rate swaps desks and compliance and information technology, the latter of which are required to deal with reams of new financial regulations coming down from the government.

Tools to get the job:

How to Get a Job in Compliance

Finding a Finance Job Abroad

Move Higher with Lateral Moves

Categories: MSF

Ten Things You Should Never Say in a Farewell Letter

Finance Career News and Advice by FINS.com - May 14, 2012 12:05pm

Parting is such sweet sorrow, wrote William Shakespeare, but it doesn't have to be if you do it right.

Bad farewells when you leave your job lead to crimped futures. Greg Smith, the ex-Goldmanite who left his former employer via an op-ed in the New York Times, is unlikely to ever work in banking again. Joe Muto, who wrote scathing articles about his work at Fox for salacious media gossip website Gawker, is likely not welcome back at Fox, or really any job in television (Fox, like Dow Jones and FINS is owned by NewsCorp).

"When you go public and take revenge on somebody, it's going to burn bridges," said Bob Bies, a professor of management at Georgetown University's McDonough School of Business and author of the book ?Getting Even: The Truth About Workplace Revenge And How to Stop It.?

Here are more things not to do when writing that last memo to colleagues and business partners:

Don't Go Public With Criticism

If there's one thing people hate more than being criticized it's being criticized in public.

"You're burning bridges with people who you may have worked with," said Roy Cohen, a finance career expert. "Some people will do it because they have this burning need to set the record straight. But the take-away for the people receiving that kind of farewell letter is, 'Boy, what a jerk.'"

On Wall Street in particular, public dressing down of a firm could get you into legal trouble. People often sign agreements when they join firms that they won't malign the institution?s reputation. Violating those agreements could have consequences.

While farewell letters may not be as public as Smith's New York Times op-ed, a good rule of thumb with any email communication in the office is not to write anything you wouldn't want to see on the front page of The Wall Street Journal, said Judith Gerberg, director of Gerberg & Co., a New York-based career-consulting firm.

Individual Praise is Out, Too

You might be tempted to mention one or two of your colleagues who were especially pleasurable to work with. Resist this temptation. Calling someone out ? even positively ? could be a mistake.

"When you call out a colleague positively in your farewell note, you're saying, 'the rest of you, you're not as good,'" said Dr. Janice Presser, CEO of The Gabriel Institute, a Philadelphia-based technology company that works with recruiters. Play it safe and praise the entire team.

Depending on how you're leaving the company, calling out someone positively could also have unforeseen negative side-effects for that person.

"If you're leaving on bad terms and do it as a gesture of support for that individual, there may be some fallout for that person," said Cohen. "It would be guilt by association."

Don't Tell Secrets

If you have been told things by others in the office in confidence, your farewell letter is not the time to betray that confidence whether it?s personal or professional.

"Say you know somebody has been having an affair in the office," mentioning that they are close with a particular colleague "could violate their privacy," said Cohen. Nor should a farewell letter be the place to become a whistleblower, he said.

Don't Use Words Like "Honestly" or "Frankly"

Speaking of trustworthiness and honesty, using certain words in your farewell letter can subtly indicate to your colleagues that you think unsavory things about them ? even if that isn't the case.

"When you use words like 'honestly' or 'frankly,' it usually means that you've been lying in the past," said Presser. "It tells people that every other time you weren't being honest or frank."

The same is true for other phrases that could easily pass under your radar undetected.

"If you wish them [your colleagues] luck, you're saying you don't have much faith in their natural ability," said Presser. "You really need to think about every word that goes in there."

Don't Fly Off the Handle

This one might be obvious, but many people send emails at the height of their emotions and then regret sending them later. Don't be one of those people.

"Greg Smith wrote his letter and hit send while his emotions were still running high, which you should never do," said Alexandra Levitt, a workplace consultant and the author of several career books. "Although it's well written, he definitely didn't think through the decision to send it all the way through. Can you imagine ever wanting to hire him as an employer?"

Any negative emotion, even eloquently expressed, can leave your colleagues with a negative impression of you.

"If you express any anger, rage, frustration or disappointment, it's a sign of social immaturity," said Cohen.

Don't Surprise Anyone

Even if you're not about to publish an op-ed in a major newspaper about how much you hate your former employer, you should avoid other kinds of surprises. In general, people don't like to be surprised in the office.

"They don't like to not be prepared, especially with something that's not public," said Gerberg. "If you put in your letter that you got a promotion to go to a different company and it's not already known, whether that's said specifically or implied, you're not building bridges. People will resent it, partially because they didn't know."

Don't Write Just One Letter

Those colleagues with whom you had a closer relationship might be offended if they only receive a mass-mailed, perfunctory farewell note. On the other hand, those who you did not know well don't need or want to read a letter where you personally thank everyone on your team.

"Don't just write one letter. There are people who you have a real relationship with who will not love getting just a form letter," said Gerberg. "You don't write the same thing to your nearest and dearest. These are people who are now forever in your circle and you want to leave them with a positive and personal lasting memory of you."

When you write more than one letter, you will have room in each personal note to say things like how much you liked working with each individual on a specific project. You may also want to leave your personal contact information with some colleagues and not others.

Don't Compliment Yourself

The farewell letter is more for your colleagues than for you. It's more important to make them feel good than to toot your own horn.

"It's not the time to say how wonderful you are. It's time to thank people and wish them luck," said Gerberg. If you've spent your final two weeks working hard and making a good impression, your farewell letter won't have to say so.

You want to be remembered as a good team player, said Presser, but talking about your leadership of a team rather than your role as a contributor can be a bad idea.

"When you do that, you're saying, 'the rest of you are not as good,'" said Presser. "Do not refer to yourself as having led the team but having been part of it, even if you led it. That's writing the letter for you. Write for the reader."

Don't Send It to Everyone

There are many people who don't need to know that it's your last day. While it may be tempting to include top executives with whom you've had fleeting contact, resist the urge.

"Don't send it to people you don't actually know," said Gerberg. "It would be odd for them to get a farewell letter from you if you don't have any real relationship with them. Once you leave, if there was some reason to contact them, then that it could be appropriate to reach out at that time."

"When you send this big distribution letter to a top executive, you can look like a person who has no discrimination," said Gerberg.

If you do make the mistake of including a top executive on your distribution list, the best outcome is if "it never gets to them," said Gerberg, which is likely, because you were not an important contact of theirs anyway.

Don't Ramble

Your farewell letter should be short and to the point.

"Don't make it more than one or two paragraphs," said Gerberg. "You're expressing 'thank you, stay in touch, it's been great working with you.' "

If you want to make references to various people you worked with or projects you worked on you should make them in a more personal letter to specific colleagues, said Gerberg.

Write to Jeremy Greenfield at jeremydg@gmail.com

Categories: MSF

Zames Replaces Drew at J.P. Morgan

Finance Career News and Advice by FINS.com - May 14, 2012 9:12am

It's official. The heads at J.P. Morgan have begun rolling over the $2 billion trading loss the firm announced last week.

In a press release, the bank said that Ina Drew, the chief investment officer who oversaw the trading strategy, will retire. Matt Zames, the current co-head of global fixed income in the investment bank and head of capital markets in the mortgage bank, will take over her position. He will continue in his mortgage role, but will cede his role as co-head of global fixed income. Daniel Pinto, his co-head of that group, will function as sole head.

Drew, 55, had worked at J.P. Morgan and its predecessor firm for 30 years. She took over the chief investment office in February 2005 and earned $15.5 million in compensation last year.

The firm assigned Mike Cavanaugh, chief executive of the Treasury & Securities Services Group, (which coordinates cash management between corporations and J.P. Morgan), to lead the response to the trading debacle.

In a statement, Chief Executive Jamie Dimon said that "despite our recent losses in the CIO, Ina's vast contributions to our company should not be overshadowed by these events."

The statement didn't mention Achilles Macris, who was in charge of operation in London that conducted the trades or Javier Martin-Artajo, a trader in that office. Both men are expected to leave the firm, The Wall Street Journal reported.

Last week, Dimon promised "corrective action" would be taken to address the missteps.

Write to Julie Steinberg at julie.steinberg@dowjones.com

Categories: MSF

J.P. Morgan's Drew, Two Others Out Over $2 Billion Loss

Finance Career News and Advice by FINS.com - May 14, 2012 7:40am

It's an ignomonious end to a 30-year career.

Ina Drew, the head of the unit that caused a $2 billion trading loss at J.P. Morgan will resign, expected to leave as early as today, according to The Wall Street Journal. One of the bank's highest ranking women, as head of the Chief Investment Office she earned $15.5 million in total compensation last year, the bank's securities filings say, and had, until last week, a reputation as a savvy trader who rarely put a foot wrong.

That reputation is now, if not in tatters, severely damaged. Drew, 55, tried to downplay the issues surrounding the losing trades on credit derivatives, people familiar with the situation have told the Journal and other news outlets. Once the magnitude of the losses became clear, she offered to resign.

Also said to be leaving the bank are Achilles Macris, who is in charge of the London-based desk that placed the trades; and trader Javier Martin-Artajo, a managing director on Macris' team.

The fallout isn't unexpected. Last week Chief Executive Jamie Dimon said the bank would take "corrective action." Dimon initially resisted accepting Drew's resigination, according to the New York Times.

Over the weekend, regulators and folks in congress began to weigh in, pointing out that J.P. Morgan has lobbied against rules that would prevent banks from taking the kinds of risks the CIO took. The Securities and Exchange Commission has opened an inquiry into the trades.

It's unlikely these three heads will be the only ones to roll.

The Flow Continues (CNBC)

The Volcker Rule is sending top traders into the arms of hedge funds. It doesn't look like the trend will let up any time soon -- the rule hasn't even been written yet.

Global Cuts (Reuters)

Royal Bank of Scotland will shed 500 jobs in the Netherlands, about a quarter of its overall staff in the country. The cuts will take place in the back office.

The Total Tally (GoingConcern)

Here's a guide to promotion season at PricewaterhouseCoopers and what you can expect to earn if you're lucky enough to get bumped up.

What to Expect (Mergers & Inquisitions)

People are predicting 2012 bonuses already, and the results aren't looking pretty.

Believe in You (myGreenlight)

Succeeding in your career is about faking it until you make it. Don't wait until you're too comfortable to accept a new position or assignment, or you'll find your career will have passed you by.

The Qualifying Factor (Harvard Business Review)

When people ask you for favors, such as an introduction to your boss, have them qualify the request with the reasons why they deserve a meeting.

Buzz Around the Office

Dry Humour (YouTube)

What happens when even the Royals have to work.

List of the Day: What Not to Say

Avoid saying any of these things to your boss.

1. I'll quit if I don't get X.

2. FYI, I'm going on vacation next week.

3. That's not part of my job description.

(Source: Glassdoor.com)

Categories: MSF

'No Surprises,' J.P. Morgan Tells Troops After $2 Billion Loss

Finance Career News and Advice by FINS.com - May 11, 2012 12:30pm

J.P. Morgan's top brass is trying to reassure employees the firm isn't going down the same unfortunate path other risk-loving banks have followed after disclosing a $2 billion trading loss generated by the bank's Chief Investment Office.

Internal memos obtained by FINS from Chief Executive Jamie Dimon -- previously thought to be immune from such calamities -- and Chief Risk Officer John Hogan seek to assure employees that the bank will fix whatever went wrong. It is typical for leaders of large organizations to issue widely distributed responses to employees following the disclosure of big bad news.

Sent by Dimon at 5:07 p.m. last evening to all employees, the first memo said that firm "has made serious mistakes in how we managed this portfolio which was riskier, more volatile and less effective as a hedge than we had previously thought." He said the bank has "top people" "digging deep into these issues," and that the firm "will learn from this experience and take whatever correction is needed."

He told employees that no customers suffered and that he was proud of the 270,000 people who work at J.P. Morgan.

"Thanks for all that you do," he wrote.

"I want to reiterate the critical role that we play at J.P. Morgan Chase. We must remain vigilant in early identification of risks as they relate to clients, counterparties or markets. Relaxing our guard is never an option. We need to use the tools available to us and not lose sight of tail events. Our focus is no surprises and a readiness to escalate quickly continues to be vitally important. Remember as an independent oversight function it's our responsibility to escalate early and as often we see fit."

Among other things, the risk department's job is to monitor and oversee the credit quality of trades and counterparties. J.P. Morgan said on a hastily arranged conference call yesterday evening that it lost $2 billion due to an oversized trade on credit default swaps, which are essentially insurance contracts betting on whether debt from corporations or countries will go bad.

Dimon didn't spell out what form corrective action at the bank will take. On the conference call with news reporters and analysts yesterday, the CEO said, "all appropriate corrective actions will be taken, as necessary, in the future." The bank, he said, is "changing appropriately as we are getting our hands around it, but we are going to have a CIO who is going to have talented people there, continue to do what they've always done."

Three executives sure to be involved in determining how the firm will avoid such losses in the future include:

1. Ina Drew, head of the CIO and one of two women on the firm's operating committee. Drew, 55, took charge of the office in February 2005 and earned $15.5 million in compensation last year. She's been at J.P. Morgan and its predecessor for 30 years.

2. Bruno Michel Iksil, London-based trader in the CIO. He piled on the credit-default swaps that resulted in the trading loss. He's been nicknamed the "London whale."

3. John Hogan, 46, chief risk officer. Hogan replaced Barry Zubrow in January as CRO. Before his promotion, he served as chief risk officer for the investment bank arm at J.P. Morgan.

Write to Julie Steinberg at julie.steinberg@dowjones.com

Categories: MSF

Don't Get Excited for City Bonuses

Finance Career News and Advice by FINS.com - May 11, 2012 5:30am

Break out your Adidas and turn up Nirvana. While job activity may be picking up in London, pay is projected to drop to levels not seen since the mid-nineties.

City bonuses will plummet 48% to 2.3 billion pounds this year, according to London-based think tank Centre for Economics and Business Research. Last year, bonuses in the financial sector totalled 4.4 billion pounds, a 35% decrease from the previous year.

Douglas McWilliams, chief executive of CEBR, told Financial News: "City remuneration levels are coming back into the real world. Employees are being told: 'Your job is your bonus, so don't expect a large sum in addition.' "

The one bit of good news: Job vacancies in the City increased 9% to 3,455 last month from March, the FT reports. You may be able to get a job, you just may have a hard time staying happy in it.

Good Advice (FINS)

Women can get ahead if they just think laterally. Sometimes, taking a sidestep is better for your career than an upward climb.

New Plan (Reuters)

Managing directors at Nomura won't be happy about the latest bonus rule. They'll now have to wait five years before cashing in the shares of their annual bonus. They used to have to wait three.

The Future of Goldman (Vanity Fair)

Here's yet another piece pondering the inevitable Goldman Sachs succession wars.

Veteran Hiring (WSJ)

Every finance firm wants to hire veterans. Goldman Sachs is the latest to detail its internship program for recent Iraq and Afghanistan vets.

Hopping Between Firms (Deal Journal)

UBS has hired J.P. Morgan banker Peter Baccile for its real estate, leisure and lodging group in the investment bank. Baccile spent 25 years at JPM.

Goodbye Power Suit (WSJ)

You don't need a navy pinstripe suit to show you're a woman in charge. Structured jackets, peplums and even florals can indicate you're not someone to be trifled with. Really. Florals.

Buzz Around the Office

Fall in Line (YouTube)

It's a bear cub love train.

List of the Day: Reasons to Quit

Here are actual reasons employees chose to leave their firms. We don't suggest you do the same.

1. An individual did not like the sound of file cabinets being slammed.

2. A person quit because he hated the carpet.

3. Someone felt the lobby area was too small.

(Source: OfficeTeam)

Categories: MSF

Party at Nomura in the U.S.

Finance Career News and Advice by FINS.com - May 10, 2012 5:30am

Nomura may be pulling back in Europe, but it's doing no such thing in the U.S.

The Japanese bank, which is set to move into new, larger office space in New York City in 2013, will hire more than 60 managing and executive directors for its investment-banking unit within the next three to five years, up from the 38 it has now.

As its competitors lay off, Nomura is trying to seize the opportunity to break into the top 10 global investment banks. It has more than doubled the number of its U.S. employees since March 2009 to 2,350 this year.

James DeNaut, head of investment banking for the Americas, told Bloomberg the bank is hiring in hopes of reaching $1 billion in i-banking revenue for the Americas, which would help it crack the top 10.

In contrast, headcount in Europe has gone down by 500 since the end of September to March 31. While the bank has conducted about 1,300 layoffs around the world as a cost-cutting exercise, that rate is expected to slow, senior management said last month.

Bankers Unite (Financial News)

Good news for former Dresdner Kleinwort bankers: 104 of them have won a battle against the bank to claim bonuses promised to them in 2008.

Best of the Best (WSJ)

Here's a good guide to the top stock analysts of the year, and an update on what the famous ones have been up to lately (like Meredith Whitney and Mike Mayo).

Compensating Accordingly (Reuters)

Nearly half of the revenue at Bank of America Merrill Lynch wealth management came from only 20% of the brokers. That explains why the firm is willing to shell out for the top people.

Building Upward (Barron's)

John Stumpf has guided Wells Fargo from the throes of the financial crisis to a place atop the mortgage lending ladder. Under him, the bank has thrived.

The Nitty-Gritty (Business Insider)

The constellation of bankers involved in the Facebook IPO is wide-reaching. Here are two names you should know: Grimes and Stanford.

Calling It Quits (Reuters)

Zoe Cruz, former co-president at Morgan Stanley, is closing the hedge fund she started in 2010. She's currently combing through job offers, a source tells Reuters.

Getting to the C-Suite (WSJ)

If you want to be a bigwig, you'll need to put in your time around the globe. Not just once, but many times.

Speak Your Mind (Bloomberg)

You may think calling your boss a "freaking jerk" would be grounds for immediate expulsion from the company. Not at TCW Group.

Buzz Around the Office

MCA Get on the Mic (YouTube)

A tribute to the late Adam Yauch (MCA of the Beastie Boys).

List of the Day: Overcoming Your Fears

Here are some tips to help you boost your confidence at the office.

1. When you're called into the boss's office, channel your nervous energy into excitement.

2. If your plea for a raise or promotion is rejected, don't let it puncture your self-worth.

3. Be prepared for meetings or presentations so nothing will catch you off guard.

(Source: The Daily Muse)

Categories: MSF

Trading the Street for Funds

Finance Career News and Advice by FINS.com - May 9, 2012 11:24am

A new trend is overtaking Wall Street. Traders who excelled at the biggest banks are finding their way to hedge funds and investment firms that can afford to compensate them the way they want.

Nearly two dozen of the top-producing credit traders over the past 13 months have fled Wall Street's banks, Bloomberg reports. Increased regulation, tightened risk appetites and lower compensation packages are the culprits for this latest exodus. John Silvetz, for example, a trader who made $700 million for Deutsche Bank over five years, left to go to hedge fund BlueCrest Capital last September. The portion of his bonus paid in cash had decreased to 20% from almost 70%.

While bonuses have been capped at some firms, hedge funds are luring away traders with heady options, like $200,000 salaries and bonuses that could reach up to 12% of traders' profits. Hedge funds are willing to pay as much as half of bonuses in cash. It's no surprise then traders are willing to move on to smaller firms.

It's not just hedge funds that are profiting. Jefferies Group has brought on at least seven corporate debt traders.

Where there's a will, there's a way. And the way leads directly to hedge funds' doors, it seems.

Six Months On (FINS)

Many former MF Global employees have been able to land safely at new jobs. Others, however, are facing the most brutal job market in years.

Continuing Along (HSBC)

HSBC cut 3,500 staff since December 2011 and 14,000 since the first quarter of last year. It says it is still recruiting in "target areas."

Cuts in France (Financial News via Dow Jones)

Both BNP Paribas and Societe Generale said they would nearly halve employee bonuses this year from last year's payout. European austerity just took on a whole new meaning.

How to Network (Corporette)

If it turns out an old college friend's father owns the company you want to work for, you need to work that connection. Even if you haven't spoken to the "friend" in six years.

Getting the Courage (BuzzFeed)

When asking your boss for a flexible work arrangement, make clear how you plan to get everything done that you need to do.

When to Leave (CAREERREALISM)

If it's been years since you've been promoted, you may want to ask what the deal is. Also start crafting an escape plan.

Buzz Around the Office

Call Me Maybe (YouTube)

The popular song is reimagined by Harvard's baseball team.

List of the Day: Landing the Job Quickly

In case you've been stressing what to wear and how your resume looks, don't forget the subtleties that help with every job pursuit.

1. Get recommended by somebody on the inside.

2. Show up ready to talk to several people.

3. Show why you're an excellent match for the position and the company.

(Source: Glassdoor.com)

Categories: MSF

New CEO for Freddie Mac

Finance Career News and Advice by FINS.com - May 9, 2012 7:58am

Freddie Mac is preparing to name Donald Layton, the former chief executive of online brokerage E*Trade Financial Corp., as its next CEO, according to people familiar with the matter.

The company is expected to announce the hiring as soon as Thursday, these people said. That would end a six-month search for the mortgage giant's third chief executive in the four years since the government took control of it.

Layton had been considered the frontrunner for the job for more than a month. His appointment is subject to approval by the Federal Housing Finance Agency--which regulates Freddie and its sibling, Fannie Ma--and by the Treasury Department.

A person who spoke with Layton recently said he had decided to accept the post, which he considers "a public service." Layton, who will be 62 years old on Wednesday, declined to comment. Representatives for FHFA and Freddie Mac also declined to comment.

In Layton, Freddie and its regulator are selecting a financial-services veteran whom the government has turned to in the past andwho is willing to work for much less money than a typical chief executive.

Two years ago, the Treasury Department named Layton an outside director of American International Group Inc., the insurer that received a government bailout in 2008. On that board, he serves alongside Christopher Lynch, who became chairman of Freddie Mac in December.

Fannie also is searching for a new CEO and has narrowed its hunt to a finalist who met with the head of the FHFA, according to another individual familiar with the matter.

Both searches have been complicated by attacks on the companies, particularly their practice of paying private-sector wages to senior executives. The firms' regulator in March said it would offer about $500,000 per person in total annual compensation for the new chief executives, down from the current packages that are worth as much as $6 million.

It isn't clear whether Layton will remain an AIG director. The company requires board members to offer their resignation upon a change in professional responsibilities, but the insurer won't act immediately, said the person familiar with the matter.

Among the challenges that Layton will inherit at Freddie is turnover among executives and employees. The company also has four vacancies on its board. Freddie said this year in a federal filing that it was experiencing "disruptive levels of turnover" that could lead to "breakdowns" in internal operations. "It's pretty explicit for a company to say those kinds of things," Charles E. Haldeman Jr., the departing chief executive, said in an interview last week.

Last week, Anthony Renzi, who heads Freddie's single-family mortgage-guarantee business, said he would leave this month for a senior job with Citigroup Inc.'s mortgage unit.

AIG alumni have been considered in both searches. Gerry Pasciucco, who oversaw the winding down of AIG Financial Products, was a finalist for the Freddie job, according to a person familiar with the search. Paula Rosput Reynolds, who stepped down as AIG's chief restructuring officer in September 2009, was among candidates for the Fannie job but requested her name "be withdrawn from consideration," a different informed individual said. Reynolds was CEO of Safeco Corp.

Layton was chief executive of E*Trade for two years, stepping down at the end of 2009. He is a 29-year veteran of J.P. Morgan Chase & Co., from which he retired in 2004, following the merger with Bank One Corp. of Chicago.

He held a series of top jobs at J.P. Morgan and its predecessors, including head of the retail bank and co-head of the investment bank. He is chairman of the board of the Partnership for the Homeless, a New York-based nonprofit.

Haldeman, who announced his departure plans last fall, is well regarded by employees for his efforts to lift morale. He declined a $2 million bonus payment he was eligible to receive earlier this year.

But his emphasis on cost-cutting sometimes didn't sit well with senior managers, and some signature initiatives to reposition Freddie Mac didn't always receive the same level of interest from government regulators, according to people familiar with the matter.

This story first appeared on WSJ.com

Write to Nick Timiraos at nick.timiraos@wsj.com and Joann S. Lublin at joann.lublin@wsj.com

Categories: MSF

Where They've Landed: MF Global Employees Six Months Later

Finance Career News and Advice by FINS.com - May 9, 2012 7:42am

When Dan Whiteford worked at MF Global Holdings Ltd., he made sure trades cleared and tackled questions from the company's clients and trading desks.

The firm's collapse last October forced him to look for work wherever he can find it. The 45-year-old Mr. Whiteford interviewed for a cashier job at Target Corp. and $10.50-an-hour spot on a Chrysler Group LLC assembly line.

He hasn't been offered a job yet.

"At this point, you have to do what you have to do," says Mr. Whiteford, who was earning $70,000 a year working at MF Global's office in Chicago when the securities firm filed for bankruptcy protection on October 31.

Of the 1,300 employees at the company's U.S. unit, only 37 will be left after a round of layoffs next week. Most of the employees were let go shortly after the bankruptcy filing, and about 200 who were retained to help wind down customer accounts and help with the probe of MF Global are being let go as their work runs out.

The company's sudden demise because of panic over its European bets pushed MF Global employees into a brutal job market. It isn't clear how many have found new jobs, since the number isn't tracked by the company or a trustee representing its U.S. brokerage unit.

MF Global serves as a study of how employees disperse when a major financial firm goes out of business, a situation not seen since Lehman Brothers failed in September 2008.

Watch FINS reporter Julie Steinberg talk about what MF Global's former employees are doing now on WSJ.com's Mean Street.

Most of the firm's moneymakers and lower-ranking employees have been able to find work. But others, such as senior employees in non-revenue-generating roles like operations and technology, haven't been as lucky.

Hundreds of former MF Global employees landed at rival firms that swooped in to pick up marooned customers. R.J. O'Brien & Associates, a brokerage and clearing firm based in Chicago, grabbed 125 front-office and back-office workers from MF Global. (A few of them were laid off in early March.)

Other ex-employees are sending out 50 job applications a day and hoping for a response. Some are willing to settle for jobs they are overqualified for, but they aren't being offered them because employers worry they will bolt when the job market improves, some former MF Global employees say.

"Many of the positions out there are more junior than I'd want them to be," says Anthony Verriello, 43, a former director of equities technology in New York. "But even if I applied for them, no one would want to hire me because the assumption is I'd leave when the market gets better. But I wouldn't do that. Anyone who offered me a good role, I'd be loyal to."

He declines to say how much he made at MF Global, but people at his level earned $250,000 to $400,000 a year, including bonus, a person familiar with the matter says. He hasn't worked since his temporary stint for the bankruptcy trustee ended in mid-February.

Recruiters and companies that hired former MF Global employees say the failed securities firm's tainted reputation doesn't count against them.

Fewer than 20 people were involved in moving money at MF Global, where an estimated $1.6 billion shortfall in customer funds emerged shortly before the failure. By comparison, Lehman Brothers Holdings Inc. had hundreds of employees in its subprime-mortgage operations.

"Most hiring managers realize 99% of MF Global employees were in no way responsible for what happened," says Chad Champion, a senior recruiter at the Mergis Group, a unit of Randstad Holding NV. In addition to MF Global, he has worked with employees displaced from American International Group Inc., Bear Stearns Cos. and Arthur Andersen.

MF Global had about 2,900 employees world-wide. In the U.K., some employees are working for the trustee in charge of the failed firm's U.K. unit. The unit had roughly 900 employees before the bankruptcy filing and has 83 as of April 30.

Not surprisingly, MF Global's biggest moneymakers have generally landed on their feet. Gary Pettit, the former global head of futures and options, moved with his team to ICAP PLC, a London-based brokerage firm.

Many lower-paid employees at MF Global also are in demand because they proved their mettle as relatively cheap labor. Of the firm's 150 analysts and associates—the two bottom rungs on the Wall Street career ladder—between 75% and 80% have gotten offers from firms like J.P. Morgan Chase & Co., Citigroup Inc. and Morgan Stanley, a person familiar with the matter says.

MF Global was never known for eye-popping paychecks. After former New Jersey Gov. Jon S. Corzine arrived as chief executive in 2010, employees got more stock-based compensation as an incentive to help their new boss transform the firm into a global investment bank.

As part of an 18-month revolving door in which 1,400 old employees left and 1,100 were hired, Mr. Corzine persuaded some traders who raked in $5 million to $8 million a year in their previous jobs to join MF Global for $1.5 million a year, including guaranteed stock.

The shares now are worthless, another painful reminder to loyal MF Global employees of everything they lost. Nick Kalivas, a vice president in financial research, thought his M.B.A. in finance, statistics and economics from the University of Chicago would help him get another job quickly. But he still is looking.

He says he will have to raid the college fund of his four children to pay property taxes, which are due in three weeks.

"I have to retool myself," says Mr. Kalivas, 46. He is putting out his own research and doing some consulting. He is considering going back to school for a master's degree so he can get a job as a financial engineer, but that would put even more strain on his family's finances.

For some employees, MF Global's collapse was enough to kick start dreams of striking out on their own. Rich Ilczyszyn, a trader at MF Global, started his own trading firm in Chicago.

"I've had it with companies," says Mr. Ilczyszyn, 43. "I can do better myself. I'm going to do everything I've done for the last 15 years. At least if I fail, it's because of me."

Write to Julie Steinberg at julie.steinberg@dowjones.com

Categories: MSF

Hiring in Africa and Private Equity, Good Times for FAs

Finance Career News and Advice by FINS.com - May 8, 2012 3:21pm

Tip: Turning Toward Africa

U.K. banking giant Standard Chartered will open 50 branches in sub-Saharan Africa in 2012, up from the 30 branches it had originally planned. That means it will need to hire more staff to man the branches. Standard Chartered will also hire corporate bankers to focus on business banking and increase resources for its Asian business lines. When you're a bank focused on emerging markets, you can hire when your Western competition can't.

Tools to get the job:

The Perfect Retail Banking Resume

How to Get a Job at SC

The Best-Kept Job-Interview Secret

Tip: Private Equity Strikes Back

Private-equity firms are getting ready to hire as the industry prepares for more deal closings in the first half of 2012. More than one third of respondents said they will increase their staff, while half said they're keeping levels steady. Half of respondents who plan to hire will bring on financial and operational staff, while a quarter plan to hire compliance staff.

Tools to get the job:

The Perfect Private Equity Resume

How to Get a Job in Compliance

Private Equity Hiring for Compliance

Tip: Flush Times for Financial Advisers

Buoyed by 2011 revenue results, Milwaukee firm Robert W. Baird & Co. is planning to keep hiring financial advisers as part of an expansion plan. The firm has nearly 700 now and has hired more than 250 since 2009. It's not clear exactly how many the firm wants to bring on, but the vice chairman of the wealth-management unit is committed to hiring "all the good quality [financial advisers] possible."

Tools to get the job:

The Perfect Financial Adviser Resume

So You Want to Be a Financial Adviser

Seven Ways to Keep Your Resume Out of the Trash

Write to Julie Steinberg at Julie.Steinberg@dowjones.com

Categories: MSF

Turnaround Time in London

Finance Career News and Advice by FINS.com - May 8, 2012 5:30am

The City jobs market is springing back slightly just in time for May.

Job vacancies in London's financial services industry increased to 3,455, a 9% increase from March, the FT reports. The figure is still a decrease from 27% a year earlier.

Recruiter Astbury Marsden, which put out the report, said investment banks are hiring staff in their fixed income units due to an injection of liquidity from the European Central Bank and the Bank of England.

Areas for hiring include interest-rate swaps desks and compliance and information technology, the latter of which are required to deal with reams of new financial regulations coming down from the government.

Still, U.K. unemployment is pretty at high at 8.3%. The London-based Centre for Economics and Business Research predicts that the jobless rate may increase to 10.7% next year.

Last year, London lost 27,000 financial employees. The city might be turning a corner, even if at glacial speed.

Expanding in America (WSJ)

Barclays will open an online savings bank in the U.S., part of a plan to fund its American credit-card business. The firm has been expanding its cadre of executives based in the States.

Stormy Weather (WSJ)

The past year has been tough for Japanese brokerage firm Daiwa, culminating in about 500 job cuts, but its chief executive doesn't want to merge any time soon.

Dairy Asia (Bloomberg)

What Warren Buffett wants Warren Buffett gets. And this time he's set his sights on expanding his reinsurance businesses across Asia.

Reinventing Yourself (NYMag)

Just because you get fired from Goldman doesn't mean your life is over. Just ask Anthony Scaramucci.

Taking a Break (Fox Business)

Want an enjoyable work day? Sure you do. Then take constant breaks from checking your email.

Blemished Record (MSNBC)

Make sure you don't commit any crimes, starting 40 years ago! One woman was just fired from Wells Fargo for shoplifting in 1972.

Buzz Around the Office

The Supermoon (BuzzFeed)

Just in case you missed it this weekend.

List of the Day: The Informational Interview

The only way to get ahead is to get your foot in the door. Do it through an informational interview.

1. Don't be afraid to email strangers to ask for help.

2. Do your research on the person and company before you get to the meeting.

3. Don't forget to follow up periodically.

(Source: The Daily Muse)

Categories: MSF

Where They've Landed: MF Global Employees Six Months Later

Finance Career News and Advice by FINS.com - May 7, 2012 5:31pm