In the dreary annals of presentations about corporate values, ABN Amro chairman Gerrit Zalm’s recent performance for the bank’s annual cabaret as his brothel-keeping “sister” Priscilla will take some beating.
For years, getting a job at a Wall Street bank, a Magic Circle law firm or a blue-chip management consultancy was a route to a very rewarding career in return for an awful lot of work. Lately, the bargain has lost some of its appeal to the best and the brightest.
Credit Suisse is the latest investment bank to issue an edict aimed at protecting the work-life balance of its junior employees – and it is getting roasted for it by bankers themselves.
Bloomberg reported (and the bank confirmed) that Jim Amine, global head of investment banking, had decreed in a memo that “analysts and associates in the US investment banking division should be out of the office from 6 pm Friday until 10am Sunday unless they’re working on an active deal”.
So ordered. Except that commanding your ambitious junior employees to limit their workload – Bank of America, JPMorgan and Goldman Sachs have taken similar action – is quite likely to be useless, if not counter-productive. To change working practices requires a profound cultural shift, and judging from the reaction to the latest news that is not likely to happen soon. Read more
Few things are as alluring as optimism and Mark Carney sees the banking glass as half-full. The Bank of England governor has arrived from Canada with a dose of can-do spirit, casting off the pessimism of Mervyn King, his predecessor.
Trader A: Dude – seen the news from Markit? FT says they’re going to launch an “ambitious assault on Bloomberg’s grip on daily communications in financial markets with the start of a free viral messaging service”.
Trader B: How so?
Trader A: By bringing together the internal IM systems of Thomson Reuters, JPMorgan Chase, Morgan Stanley, and half a dozen other IBs, including my place and yours. Read more
Credit to Jamie Dimon for attempting to see the wood for the trees by felling some of the trees. The JPMorgan chief executive’s memo to staff makes clear that “simplifying [its] business” and “refocusing [its] priorities” is, well, a priority.
But what Mr Dimon is attempting is arguably the most complicated task known to managers of large multinationals, whether they sell food or financial services. It is dangerous to imply, as he does, that the goal of simplification can be achieved, once and for all, by “recognising our problems, rolling up our sleeves and fixing them”. Read more
If ousted Danske Bank chief executive Eivind Kolding’s controversial advertising campaign persuaded any customers to take their accounts elsewhere, that is some achievement. Bank customers are reluctant to change banks regardless of what the advertising says.
I may be an extreme case – I have been with the same bank for 35 years – but international studies suggest I am not unusual. A worldwide survey last year by EY, the professional services firm, found that just a third of customers had ever changed their main bank.
Of course, Mr Kolding’s aim was to persuade customers to put their money in his bank rather than to take it out. The problem was that the Danske Bank ad (“A new normal demands news standards”), which featured, among other things, street rioters, Occupy campaigners and crumbling icebergs, was a category error. Read more
British bank customers are hearing a lot about a 19th-century Scottish cleric called Henry Duncan, who opened the world’s first savings bank in 1810, from Lloyds Banking Group and TSB, the latest descendant of the good vicar’s pioneering idea.
But the origins of “new TSB” are less inspiring than those of its ancestor. It is the brand attached to bank branches the European Commission has forced Lloyds to separate out as a condition of the group’s post-crisis government bailout. In due course, Lloyds is expected to float TSB on the stock market. Read more
When Goldman Sachs bought the commodity trading house J Aron in 1981, it also took on Lloyd Blankfein, then a salesman of silver coins. Thirty-two years later, Mr Blankfein is Goldman’s chairman and chief executive and the bank owns, among other commodity assets, some aluminium warehouses near the ailing city of Detroit.
I’m intrigued by the possibility that the civil trial of Fabrice Tourre, the former Goldman Sachs banker, may hinge on whether an email to his girlfriend was a love letter or an injudicious admission that he was misleading investors about the complex mortgage-related securities he was selling.
The lead attorney for the Securities and Exchange Commission said at the opening of the civil hearing on Monday that it was the latter. Mr Tourre’s lawyer asked the jury to put the language of the communication down to “youthful arrogance” and said it was “an old-fashioned love letter” to his girlfriend, who was a Goldman co-worker. Read more
After the 2008 financial crisis, the banking industry initially acted like a cartoon character who shoots over a cliff-edge at high speed and keeps going for a while before falling. Five years on, they are lying on the ground – and will never be allowed to return to their fast-paced ways.
“Fashionable management school theory appears to have lent undeserved credibility to some chaotic systems.”
This line leapt out from the 571-page UK parliamentary review of banking published on Wednesday. It’s in the conclusion to the passage criticising the way in which banks applied the “three lines of defence” risk control framework – line managers, risk controllers and compliance staff, and internal audit. Read more
It’s not that the UK’s central bank doesn’t need an extra pair of operational hands at the top. The possibility that future governors would be overloaded was one of my principal concerns about the BoE takeover of a large chunk of the now-defunct Financial Services Authority, so Mark Carney, governor-designate, has made the right move.
John Gapper is an associate editor and the chief business commentator of the FT.
He has worked for the FT since 1987, covering labour relations, banking and the media. He is co-author, with Nicholas Denton, of 'All That Glitters', an account of the collapse of Barings in 1995.
Andrew Hill is an associate editor and the management editor of the FT. He is a former City editor, financial editor, comment and analysis editor, New York bureau chief, foreign news editor and correspondent in Brussels and Milan.
Emma Jacobs is a features writer for the FT, with a particular focus on Business Life. She explores workplace trends, business culture and entrepreneurship and is one of the paper's leading interviewers.
Adam Jones is editor of Business Life, home to the FT's coverage of management, entrepreneurship and working life.
Lucy Kellaway is an Associate Editor and management columnist of the FT. For the past 15 years her weekly Monday column has poked fun at management fads and jargon and celebrated the ups and downs of office life.
Ravi Mattu is the deputy editor of the FT Weekend Magazine and a former editor of Business Life. He writes about management, technology, entrepreneurship and innovation.
Michael Skapinker is an assistant editor and editor of the FT’s special reports. A former management editor of the FT, his column on Business and Society appears every Thursday.
Comment by Elaine Decoulos Excellent! I totally agree. If possible, the same approach should apply to the major shareholders in a family business, i.e. members of that family. Who is influencing them and are they really m …
Comment by Aelwyn Didn't a recent FT article suggest that charismatic business leaders were usually neurotic? That's before we even start looking at physical addiction. My boss was a recreational cannabis user and the …
Comment by FT assumes we want pseudonyms? razor11 wastes no time in trolling. Thanks for the article, Emma Jones! In a way it's a pity that these family-conscious top employees have to resign in order to spend more time with their families. …
Comment by razor11 This may seem like a controversial statement to make in the western feminist age, but I'm going to make it anyway because I believe it reflects the truth.Men and women are different - genetically, bio …
Comment by ANW Sometimes I find colleagues of parents assume that responsibility for childcare is simply ''the other ones' responsibility''.I
once spoke to a female director of a very large global company who told