Banks

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.

Andrew Hill

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.

Life can be unfair and it often feels unfair even when it is not. Both JPMorgan Chase and UK energy companies such as Centrica know this feeling.

Andrew Hill

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

Not long ago, Goldman Sachs was Wall Street’s lightning rod, attracting bad publicity and interventions from regulators. Its place has been taken by JPMorgan Chase.

Andrew Hill

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

Michael Skapinker

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