Staff shortage is forcing senior bankers to do junior jobs

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Following yesterday’s story on the brutal email sent to analysts by a vice-president (VP) tired of not following his instructions, Business intern has some context as to why VPs might feel so upset.

In the 2021 “hot market” for transactions, BI says desperate banks have tried to recruit new junior banking talent wherever they can find it. In the United States, this includes corporate finance lawyers; in the UK it means people like trainee accountants. Unfortunately this new talent has a “pretty steep learning curve, ”one analyst said, and that puts additional pressure on existing staff who actually know what they’re doing.

As a result, BI says middle and senior bankers who thought their days in the pen were over are back to help with the enforcement work. “I have a deal right now where my VP offered to go into PowerPoint and work on the changes on the bridge, because we just didn’t have enough people to work on the bridge, ”he said. said an experienced analyst. MDs going back to the office and doing the kind of “big job” running the case that they hadn’t had to do in a decade since they were vice-presidents themselves.

It could get worse before it gets better. This year trainee course and the incoming upper classes are not really big enough to meet the demand for additional juniors – and they will still need to be trained. The existing junior staff are exhausted and are expected to resign en masse after the August bonuses. The only good news is that senior bankers who help execute deals have less time to come up with new ones, so the deal pipeline may not be full.

Separately, a former Deutsche Bank trader is jailed – not in Deutsche Bank’s new Columbus Circle building by DB executives wearing hard hats looking for photo opportunities. James Vorley, a 41-year-old British DB trader, goes to real jail for a year and a day after being convicted of manipulating the prices of gold and silver by a jury in Chicago. The judge seems to have decided to make an example of him in order to communicate the “message that if you try to manipulate the market, the price you will pay includes jail. Vorley joined DB after school and argued that he had learned on the job that, “bluffing and mismanagement “were perfectly valid business techniques. His former colleagues at DB wrote asking for leniency, saying Vorley was ethical and often sought compliance advice. Family members wrote saying that ‘A prison sentence would hurt his children for becoming their primary caregiver while his wife worked. The judge was in no good mood.

Meanwhile…

Blackstone now recruits from 44 universities instead of 9, and recruiters for more experienced positions must nominate at least two women and two people from ethnic minorities on the shortlist. (Financial news)

Goldman Sachs is trying to shorten its hiring process and may be on the verge of requiring applicants to pass fewer interviews. (Business intern)

BNP Paribas has big plans for its equity flow derivatives business. We hit below our weight in flux. We know where we want to grow and how we want to do it. (IFRE)

Many people have already returned to the Hong Kong office. Morgan Stanley has recovered more than 70% of Hong Kongers. Credit Suisse holds 60-70%. Citi has 75%. JPM is working up to 75% in the coming weeks. (Yahoo finance)

Andreas Loetscher, the former chief accounting officer at Deutsche Bank (who has temporarily become the bank’s audit adviser) is trying to prevent a German parliamentary committee from naming him in a report on the Wirecard scandal. He was the former EY partner in charge of Wirecard audits. (Financial Times)

Robert Gelnaw, Head of Debt Capital Markets for North America, Lex Malas, Head of Advisory and Investment Banking Coverage for the Americas, Jim Kelly, Head of Merchant Banking America du Nord, and Duncan Caird, Co-Head of Real Assets and Structured Finance Americas, are all leaving HSBC. (Bloomberg)

Goldman Sachs opens its UK transaction bank. That’s why he’s so excited about it: “The size of this portfolio in the United States and around the world is larger than that of our traditional investment banking products. Over the next few decades, there will be a multi-billion dollar revenue opportunity for the business, if we get that right. (Financial Times)

Deutsche Bank has decided to return to the payments business. (WSJ)

Central bankers who were exposed to disasters early in their lives tend to manage inflation more conservatively in the very short term. (Wiley)

Steve Cohen’s impressive trading technique during the dotcom crash. ‘Steve did something that I had never seen him do before: he left the office and went downstairs to have lunch with his family. (ZeroHedge)

The Bumble dating app gives its employees a full week of paid time off to help them recover from COVID-related burnout. (Bloomberg)

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photo by Bruce mars at Unsplash

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