To Bank or Not to Bank               

So the people that have brought the country to its knees are essential to getting us moving forward. What should the government do? Tax them too much and they may up sticks and leave or star performers might simply move to “non-government” owned banks; however there seems to be an appetite for public/electorate revenge on these people that caused all the problems.

I don’t have all the answers but as a recruiter I know the value of people to any organization and Mr Darling and Mr. Brown need to strike the right balance ensuring the excesses of the last 10 years are stopped but not starting a reactionary backlash that will ensure London looses its place as a world leader within the Financial Services industry. We need our part owned state institutions to stay competitive and successful for many years to come..  

Any thoughts let us know

The last month has seen the papers full of comments concerning Bankers and their bonuses…..how many column inches can one subject fill? Few people would argue that in recent years a % of bank bonuses have been over the top and in some cases downright disgusting, however how many people would argue that the vast majority of bonuses are justified and the issue is the value of these bonuses?  

The next 12 months are going to be key to UKPLC and the issue of bonuses will not go away especially when the now government owned and funded institutions are refusing to pay bonus or if they are they are paying them over three years in shares. As a recruiter I have seen a flood of CV’s from extremely talented professionals looking to leave these institutions…It seems simple, there are two choice’s one is a political digestible and political correct institution void of quality that will struggle to pay the government back the money it is owed because many of its best people have left or some kind of middle ground that rewards people responsible for doing a great job and by doing so retains these quality individuals and in turn helps re-pay the debt quicker.  

Unfortunately these institutions have already made the decision and I would suggest that “WE” will regret for many years to come.

British financial meltdown has sparked massive layoffs among Canadians, Americans in London's once-gilded City

London-The good old days are over for Canadians working in the City, the fabled London district that once gave Britain the world's most powerful international financial sector.

Tens of thousands of Canadians and Americans have for years been drawn to London to take jobs in banking, many of them working for the gilt-edged British operations of U.S. investment giants. But the appeal of the expatriate careers has been tarnished by the meltdown of the British banking industry as the recession that started on Wall Street 18 months ago spread around the globe. Estimates of jobs lost in London's financial businesses between 2007 and March 2009 run as high as 130,000.

"Yeah, and I think half of them are in my inbox," joked employee recruiter Josh Wright. "Every day you open the paper, it's doom and gloom," said Wright, a 25-year-old from Waterloo, Ont. "It's a completely different market than two or three years ago."

The grim job situation reflects an epic reversal of fortunes in the City. Fed by cheap debt, a housing bubble and freewheeling markets, bankers racked up dizzying profits and bonuses as financial companies led a giddy run-up of wealth during Britain's 15 years of steady economic growth. But no one's looking for sky-high payouts now.

"The bonus this year is that you kept your job. If you're working, you're grateful," said a young Toronto MBA graduate who asked not to be named. He himself has been looking for a full-time position since being laid off by a large finance company in London nine months ago.

"It's been an uphill struggle to find work. It's pretty bleak out there. And it's getting worse. In the last two weeks, I had four friends who lost their jobs."

It's not just the unravelling of big-name financial houses like Bear Stearns, Merrill Lynch and Lehman Brothers that has drained jobs from the City. Dozens of other shell-shocked British operations – as well as companies from continental Europe, Canada and the United States – have reduced their presence in London to cut costs, observers say. And a new survey by the Confederation of British Industry predicted another 15,000 jobs will disappear by summer.

In the boom years, banks were in such need of personnel they would take on employees with a minimum of training or skills. But now financial institutions can have their pick of highly qualified job seekers.

"Some think the worst is behind us but that doesn't mean that there won't be additional layoffs," said Ryan McGaw, 33. Many Canadians and Americans working in banking in Britain are young and their plans are changing as the lure of the City fades, the former New Brunswicker said. "Some people are thinking of travelling for six months, and, especially in the expat community, some people are just thinking of going home. "I knew someone who always wanted to move to Australia. So after he got laid off, he did."

The urgency of the job search is compounded by the cost of living in London, one of the world's most expensive cities. On top of that, working in the City has lost some of its traditional cachet. One senior executive saw his house vandalized and protesters tried to break into a downtown bank branch recently as the backlash against the financial community peaked.

With many Britons accusing financiers of wrecking their economy in an orgy of greed and risk-taking, bankers here have been appealing for an end to the "public flogging" of their industry. Until 2007, banking had been the driving force behind Britain's growth. But Russell Jones of RBC Capital Markets says the sector's economic potential has been reduced by a third in only 12 months.

The lucrative merger mania of recent years is over and investors have been spooked, said Jones, RBC's global head of fixed income and currency research. Referring to the risky securities that played a key role in the international crisis, Jones said, "For some of the more esoteric products which developed over the last couple of decades, some of those markets have just ceased to exist and London was at the forefront of them.

So it's a sector of the economy which is under acute duress." Looking ahead, British leaders wonder if the City will some day resume its former stature or whether major centres such as New York or Frankfurt will erode London's pre-eminence as a global financial hub.

"The financial world has changed beyond recognition over the past couple of years," said Richard Lambert, director general of the Confederation of British Industry. "No one knows quite how this story is going to end. But one thing we can be sure of: We are not going back any time soon to those balmy days of yesterday that ended with such a loud bang in the summer of 2007.

"Still, while the jobs picture may not be the same for expatriates after the slump, it will continue to have a strong appeal, said Wright, the financial services headhunter. "London's not going to die as a competitive city," he said. "It may take a while but it will come back."

The Thomson Reuters Investment Banking Landscape as of July 12, 2013

Investment Banking - the number of Italian companies involved in mergers and acquisitions was up by 30% so far in 2013, with a total value of $30.6 billion. LVMH have acquired an 80% stake in Loro Piana SpA, the cashmere clothing producers at a cost of $2.6 billion. 

Increase in Italian Investment Banking

This means that Italian involvement in the consumer staples market is up to 9% of total activity compared to only 2% this time last year. The majority of merger and acquisition activity undertaken by Italian companies this year has been in the financial, industrial, energy and power sectors, accounting for 72% of overall Italian involvement compared to 74% last year.

Dominating the field in a financial advisory capacity for the Italian mergers and acquisitions was Goldman Sachs, overtaking last year's top contributor Mediobanca and keeping Deutsche Bank off the top spot as well.

US Mergers and Acquisition Rate Falls

Despite a $2.5 billion bid by Kroger for Harris Teeter Supermarkets, the US rate of retail mergers and acquisitions has only reached $12.7 billion for the year to date. This is a decline of 31% on last year's rate, although the total US target mergers and acquisitions has reached $457.3 billion this year, which is up 21% on last year. Around 88% of all US target mergers and acquisitions are by US buyers, which is an increase on last year's 75%. At 18% of all mergers and acquisitions, healthcare is at the forefront of activity so far this year, with energy and power accounting for 15% and real estate in third with 12%.

As Harris Teeter's advisors, JP Morgan remains in the top spot for US target mergers and acquisitions, with Goldman Sachs coming in second and Bank of America Merrill Lynch coming in third in their role as sole adviser to Kroger.

Reduction in Global Investment-Grade Debt

General Electric Capital Corp has this week made a $3.5 billion corporate bond offering, the largest issuing of global investment-grade corporate bonds since June, when $6 billion was raised by Chevron. This brings the strongest weekly total for global investment-grade debt since early June, standing as it does at $14.4 billion. There has been a 3% annual decline on overall global investment-grade debt in the corporate sector, with a total of $1.5 billion to date.There has been an 18% decline in global investment-grade debt from European issuers, whilst in the US it has increased by 19% in the year to date. Morgan Stanley has moved up from sixth place to top the rankings for financial advisors involved in mergers and acquisitions.

If you're not sure which career move would best suit your skills and experience take a look at our Job Profiles. The profiles provide advice on the qualifications, skills and experience required for each career option. The job profiles also outline salary expectation, job responsibilities and career progression.

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Be Well Prepared for a chance at a Banking Career

Banking interviews can often consist of many stages, testing the aptitude, skills and flexibility of the candidate in order to determine his or her suitability. Most of all, employers want to know what kind of impact the individual will have on their bottom line.

One of the first things you will be asked is what you know about that particular company. It is important to have done your research thoroughly, as well as to have a satisfactory answer when they ask you why you have chosen banking as your profession.

Competency based questions are a popular method of establishing core skills; the interviewer will ask the candidate to draw on real life experiences of problem-solving, leadership or client management, therefore it is vital to keep a handful of prepared examples in your back pocket.

Specific, finance-related, investment banking questions could include: If you could buy one stock today, what would it be (and why)? What do you mean by ‘cost of capital’? Can you explain the effect of rising interest rates on the economy? What technique do you use to value firms? Be sure to know the role you are applying for inside out, as you could be presented with a hypothetical situation in which to prove your worth.

Behavioural or personality-based questions often probe your ability to work within a team and under pressure. You may be asked where you see yourself in five, ten or fifteen years. You will almost certainly be asked to list your areas of strengths as well as your weaknesses (always try to put a positive spin on this, by thinking of them more as areas for further development).

Always consider your USP – unique selling point. Banking interviewers will be looking for somebody exceptional, somebody who brings a talent or quality to the table that sets them apart from the competition. City CV are banking industry experts and offer a full interview coaching package; to find out how we can help you stand out from the crowd and win your dream job.

Circle Square Talent - Banking Jobs London

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Bankers Integrity Tested by CISI

The Current Situation for Bankers

Testing for Bankers is Long Overdue

The Future for Bankers 

Without the CISI credentials, bankers may find that they struggle to find employment at the larger banks over time.

However, critics have warned that the new CISI initiative can only go so far in protecting savers as it simply shows bankers' theoretical knowledge of ethical practices rather than confirming that they applied integrity in their daily work. Of course, no current test can accurately predict and determine subsequent behaviour, but for most people this new development will be seen as a positive step forward.

Written by Ross Stokes of Circle Square - Financial Recruitment London

If you're not sure which career move would best suit your skills and experience take a look at our Job Profiles. 

The profiles provide advice on the qualifications, skills and experience required for each career option. The job profiles also outline salary expectation, job responsibilities and career progression: 

M&A Analyst    M&A Associate    M&A Director     M&A Vice President

If you are looking for advice we have a dedicated career advice section. Our advice is not just generic recruitment advice we have tailored advice for each of the recruitment divisions we work in including: 

executive search, accountancy & finance, temporary & interim, Real Estate, private equity, capital markets & M&A. To view our M&A Jobs

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The New Banking Reforms

There are two primary schools of thought. The first group thinks that the proposal represents a climb-down for Mr Osborne and that it opens up the topic of optimal structures for UK banking and creates fresh uncertainty for British banks in the process. The second group feel that this change will be largely cosmetic and the strength of feeling in this camp does clearly indicate how little regard the public now has for this beleaguered industry.

There is a possibility that the distant threat of break-up will focus the minds of each bank and provide a strong incentive to view the ring-fence in a genuine and serious way. However, even this change will mean little to the critics, who believe that both the Independent Banking Commission and the government should have pushed for clear separation from the beginning.

The problem is that if you believe that a ring-fence will be ineffective by nature, or that the government continues to allow the banks far too much leeway in setting their own terms, then you'll probably feel that the concept of 'electrifying' the ring-fence will make very little material difference. After all, let us not forget that even the world's most stringent ring-fence would not have been able to prevent the fall of Northern Rock, which didn't even have a 'risky' investment arm and instead had a basic mortgage and retail operation.

Written by David Archer of Circle Square - Financial Recruitment London

High-Stress Industries Take Their Toll on Body and Mind

Investment Bankers Health & Mental State

Large % of Bankers Turn to Alcohol

Many Investment Bankers Driven to Indulge in Illegal Substances

The nature of an investment banker's work is not sustainable in the long term and once the body has started to crash, the mind is sure to follow. Many bankers have begun to indulge in illegal substances, including cocaine and speed and these substances then trigger a need for over-the-counter drugs to reduce feelings of anxiety and prevent the body from crashing. Both legal and illegal substances can be very addictive, harming the body and mind whilst ensuring the user makes it through a day of work.

A Banker's World can Become Very Small

Investment bankers are by nature incredibly ambitious and will stop at nothing to reach the top or maintain a successful portfolio. A banker's world can become very small, especially if they only socialise with other people in their industry and never break ranks to enjoy their own downtime. The long-term health effects of continual pressure can cause personality disorders.

The blatant disregard of the need for a healthy mind and a healthy body are at the root of many investment bankers' main problems  A balance between work, leisure and healthy living needs to be attained in order for underlying issues to be addressed and not manifest as addiction or alcoholism.

Written by Andrew Pringle of Circle Square - Financial Recruitment London

If you're not sure which career move would best suit your skills and experience take a look at our Job Profiles. The profiles provide advice on the qualifications, skills and experience required for each career option. The job profiles also outline salary expectation, job responsibilities and career progression.

M&A Analyst      M&A Associate      M&A Director      M&A Vice President

If you are looking for advice we have a dedicated career advice section. Our advice is not just generic recruitment advice we have tailored advice for each of the recruitment divisions we work in including: executive search, accountancy & finance, temporary & interim, Real Estate, private equity, capital markets & M&A. 

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As the global economic downturn continues to affect countries across the world and particularly members of the eurozone, financial products and services are still being affected.

In 2012, fees for investment-banking services dropped by 3% to $74.8 billion.

This marks the slowest period since 2009 for investment-banking fees, covering everything from capital markets underwriting to M&A advice. There was a rise in the fourth quarter of the year, a 13% increase on the same quarter in 2011.

In Europe, where the single currency is still in trouble, fees took a 17% tumble from 2011 to $17.1 billion and Asia Pacific saw an 18% decline. There was some good news, however, as the Americas saw their fees rise 6% from 2011 and Japan by 18% over the same period.

1% decline in investment fees 

Financial sponsors and their portfolio companies were also hit during the year, recording a 1% decline in investment fees over the year to $10 billion. Leveraged-buyout fees comprised 37% of financial-sponsor-related fees throughout 2012 (a similar story to that seen back in 2008 when the financial crisis began). The Carlyle Group LP (and related entities) proved to be a big success story for the year, seeing an impressive 43% increase in investment-banking fees to $396 million. Goldman Sachs also had an excellent year, boasting 7.5% of financial-sponsor-related fees during the year, making it the industry leader for 2012.

Debt capital markets made up 30% of overall investment-banking fees

Debt capital markets made up 30% of overall investment-banking fees during the year, boosting its totals by 26% to $22.5 billion. However, M&A advisory fees were another casualty, dropping by 12% to $20.5 billion. Equity capital markets saw their slowest annual period since 2003, recording a 17% decrease to $15.6 billion. Meanwhile, the industrials, financials, materials and energy and power sectors made up 63% of the overall global fees in 2012.

JP Morgan was the year's big winner. The company took $5.6 billion in fees, which translated as 7.5% of the overall share. RBC Capital Markets also ranked well, gaining 0.8 points (the biggest increase). Barclays, Wells Fargo and Citi also followed closely behind in improving their share. Bank of America Merrill Lynch, however, saw a 6.5% decline in its fees to $4.9 billion.

Morgan Stanley took 10.7% of investment-banking fees in the technology sector

JP Morgan's success saw it lead the fee rankings for eight sectors for the year. Deutsche Bank did well in agency and government underwriting, with 6.3%, while Morgan Stanley took 10.7% of investment-banking fees in the technology sector for 2012.

Global Investment Banking Review Full Year 2012 - Written by Ross Stokes

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Over the last 4 years we have seen the credibility of the ‘Boutique Investment Bank’ rise from the depths. Depths far far below the most snobbiest of ‘reading spectacle glares’, to a level competing and niching into a space previously owned by the all conquering ‘Bulge brackets’.    

The classic boutiques such as Evercore, Lazard and Rothschild have grown increasingly strong both in numbers and ambition, taking mandates from the major players as they are specialised, competitive and provide a more honest approach to partnership. Bottom line…they care about their bottom line!  Service is naturally better and the desire for longer term business is 100% genuine.   

Another major factor to consider is throughout 08/09/10 top bankers from the traditional big banks have had to reconsider their future, having either being ruthlessly tossed from the comfort of bulging teams and pension pots or realising that the dream may be ending have sought out opportunities in more stable and growing organisations. Obviously plenty of bankers move across to Boutiques for genuine reasons (which are the ones we want), so the amount of talent on offer to these organisations has increased on a pretty big scale. 

This has naturally led to the growth of younger brother and sister boutiques such as Gleacher Shacklock, Arma Partners and Greenhill who have become tier one organisations in their own right due to the calibre of not only the deals they are closing, but also the individuals they are retaining and continuing to hire.   

Naturally too much competition is not healthy as Lexicon found out (present long before 2008, graduated at a similar time to close friend Hawkpoint) having recently been gobbled up by Evercore.  However this is an example of the strength that boutiques are starting to hold in themselves, other examples fall in line with the previously unattainable Bulge Bracket Bankers seeing value in a move to one of these organisations.  In the last three years your average top tier banker has been knocked down a branch or two in the sacred Bulge trust tree and realised, God forbid, they may just get better experience and exposure in a busy, highly credible boutique.  

Circle Square - Financial Recruitment

To search our current jobs

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If you're not sure which career move would best suit your skills and experience take a look at our Job Profiles. The profiles provide advice on the qualifications, skills and experience

required for each career option. The job profiles also outline salary expectation, job responsibilities and career progression: M&A Analyst    M&A Associate    M&A Director    M&A Vice President

If you are looking for advice we have a dedicated career advice section. Our advice is not just generic recruitment advice we have tailored advice for each of the recruitment divisions we work in including: 

executive search, accountancy & finance, temporary & interim, Real Estate, private equity, capital markets & M&A Recruitment. 

To contact one of our specialist consultants call 0207 492 0700 or email: enquiries@circlesquare.co.uk