Where Goldman Sachs and JPMorgan struggle to hire


Expatriate positions are often difficult to fill; While they are often a great way for ambitious bankers to gain experience and boost their careers, they inevitably put strain on family life and relationships. When the assignment is in a place where each return home means quarantine of two or even three weeks upon return, the difficulty is even greater. This is why David Solomon of Goldman Sachs and Jamie Dimon of JPMorgan have confirmed that they are currently having serious problems attracting top talent to work in Hong Kong or mainland China.

There are a few exemptions from the very strict quarantine regime, but there appear to be considerable political and reputation difficulties in using them. When Jamie Dimon made her strangely quarantine-free two-day trip to Hong Kong earlier this week, it sparked a local debate that resulted in Carrie Lam, the region’s chief executive. Perhaps with that kind of controversy in mind, David Solomon seems to have avoided the problem altogether, commenting that even though he had reduced his total number of trips to Asia, “I haven’t been to Hong Kong and China. , and I don’t expect that I’m going to be able to go there for quite a while. And the president of HSBC Mark Tucker decided to just bite the bullet and spend three weeks in a hotel room.

HSBC, of ​​course, is the bank with the biggest problem here; the first two initials of the bank’s name tell you why it is committed to the wider market, and in April the bank announced that four of its top division heads will be move to Hong Kong. This decision is likely irreversible, but it is also reasonable to assume that it may not have been taken in anticipation of such stringent and long-lasting controls. Greg Guyett, the head of global banking, appears to be delaying his move, originally scheduled for this year but now more likely to occur in 2022, precisely because “he’s able to move more freely to visit the United States and other regions by staying in the UK a little longer ”. Commercial bank manager Amanda Murphy is move from UK to Singapore.

It doesn’t seem like there are very good solutions here. Increasing the proportion of local hires would be expensive, and for many roles there may be literally no one available. Anyone in the banking industry with family ties in Hong Kong has apparently already received the ‘come home’ invitation. Post co-maintainers like Murphy for Singapore may be an option for a general APAC franchise, but if you are specifically targeting the Chinese market, you need people on the ground. And there is always the possibility of offering more money, but that tends to increase wages in the market in general, and could raise embarrassing questions about what happens to “COVID money” when the China is finally relaxing its controls.

Elsewhere, in a world where low interest rates continue to push the retirement threshold further and further, it is a certain flexibility to announce that you are so rich in your investments and in your external business interests that your daily work is an expensive hobby that you can no longer justify. This seems to be the story of Wayne kent, the vice president of Credit Suisse Australia, who decided that the investment bank was taking time that could be spent managing a moving group called “Kent Relocation Services”, doing real estate transactions commercial and join the board of directors of an investment company.

This phenomenon is actually a little more common in the banking industry than one might think, although it is more common when the descendant of an extremely wealthy industrial family is recalled from his banking career to take his place in the succession. dynastic. Good luck to Mr. Kent, and we wish him success enough to enjoy a second early retirement when he decides that his fortune is now taking time that he could devote to golf or fishing.

During this time …

It is difficult to say if this is a ploy to evade jury duty in a trial that promises to be long, unpleasant and likely to attract the attention of Internet freaks, but “Juror 87, ”a Manhattan private equity employee, said he feels he cannot necessarily give an unbiased opinion on the Ghislaine Maxwell trial because there are so many personalities in the private equity world involved. in the larger scandal. He did not say where he worked, or indicate in which direction his bias might have been. (Bloomberg)

Nomura’s expansion of its investment banking business continues – they have now hired Carmelita Ritorto from Natixis to be responsible for insurance solutions in the FIG Group. (Financial news)

Mario Carrasco, Citi’s sharpshooter in the municipal bond market, has started delivering the goods – they took out their first bond in Texas since problems with their gunmaker loan policy. (Bloomberg)

While to a large extent the payoff on his long-term options really only reflects the many bonuses Jes Staley gave up in previous scandals at Barclays, the optics of his £ 2.4million package don’t was not excellent, and some large investors are apparently planning to call to ask questions about it. (FT)

The Los Angeles Lakers will now play at “Crypto.com Arena” after a Singaporean brokerage firm bought the naming rights to Staples Center. On the one hand, it really looks like a premium indicator. On the flip side, the number of alumni who say “this looks like a market top indicator” is in itself an indicator that the top may still be a long way off. (WSJ)

End of an era for FT Alphaville fans – its editor Izabella Kaminska leaves to pursue another project. (Twitter)

The proportion of women on bank boards is increasing, but the actual number of female directors has not increased. This paradox seems to be the result of the fact that a few years ago, boards met diversity goals by creating a lot of new seats to accommodate female candidates, and they are now using director retirements. older men to reduce the overall size of the board. go back to where they wanted. (Bloomberg)

The team that eats together competes together. (Fine)

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