From the mailbag:
This memo was sent out to IB today:
“As a result of new financial reform regulation in the U.S., we will transition our proprietary trading teams within the Investment Bank’s Equity, Emerging Markets and Structured Credit businesses to Asset Management and will establish a new alternative investment management group for J.P. Morgan clients. We expect to complete this transition over several years.
As you know, J.P. Morgan Asset Management is a leading investment manager for institutions, financial intermediaries, endowments, foundations and individual investors. The IB colleagues who will transition have delivered strong risk-adjusted returns for the firm, and we are confident that clients will benefit from their investment experience and insight.
We have asked Mike Stewart to lead this initiative. Currently, Mike is the co-head of the IB’s Global Emerging Markets (GEM) business and is a seasoned trading manager. He will remain co-head of GEM through year end, reporting to Daniel Pinto, and will begin to transition his responsibilities during this time. Mike will work closely with Larry Unrein, head of the Private Equity and Hedge Fund groups in Asset Management, to establish this group.”
People are pissed, apparently compensation will be scaled to Asset Management bonus pool as well, so not looking too good for prop trading. Managment is claiming it will be a slow process but already hearing that only top performers will make the move. Non top performers will need to find another job in the bank or externally, typically not news you want to hear.
Barcap did this a full year ago (many months before fin reg was passed) – I wonder how good these prop traders really are if they could not “anticipate” the passing of fin reg and its consequences? Head for hedges while there are still spots left…
And those hedges better have AUM > 10 BB. Else they’re going to be history too
I think over 1 billion – depends on what markets you are in. Emerging markets are moving, and so are commodities, but equities are just pure stinkers. I do agree that a lot of hedge funds are going the same way a lot of startups did after the tech bubble burst – extinction.
If top performers are staying there, either the bonus structure under JPM’s AMG is good, or jobs are thinning rather quickly. Well even Paolo Pellegrini took a crappy analyst position at Paulson & Co, and that worked well for him…..well until this year that is.
In Soviet Russia, Asset management piss you!!!
maybe they can go asset mgmt’s 40 work week as well…
Meet me at Minettas to discuss, I will be the pissed ex prop trader crying on my black label burger
Look for widescale departures in their commodity group when “bonuses” are paid in Jan. The Houston team (fka Bear Energy) will revolt and bolt. Commodity bonuses are going to suck golf balls through hoses this year.
I will still kick you in the balls so I know its you.
Where is the Armani Suite?
Revolt and bolt is the NKI
Next to Wall St – Armani redesigned ex-office building, but in my case I meant Suits of course in light of promo Jos A. Banks posts on Friday.
Armani was an 18th century Italian composer. His most famous work was Overpriced Suites for Pretentious Douches.
just sell your chicago mansion you pissants
-james dimon
just sell your chicago mansion you pissants
-james dimon
making fun of Bills fans during the pats game at mcfaddens, getting chased out of the bar sprinting down 2nd av is the NKI
making fun of Bills fans during the pats game at mcfaddens, getting chased out of the bar sprinting down 2nd av is the NKI
making fun of Bills fans during the pats game at mcfaddens, getting chased out of the bar sprinting down 2nd av is the NKI
40 hours seems like a lot, do they work all 4 days too?
also, migrant farm work is the NKI
Because it worked so well for UBS when they spun their prop team out to asset man/Dillon Read…
Isn’t that partially b/c their performance sucked balls through hoses…it’s not like that group ever made a killing anyway. Where would they even go…Coal Hedge Funds ( do they even exist? ) Utilities…
Dealbook gets this memo SEVEN hours later and still hilariously thumbs its chest about “obtaining” it.
http://dealbook.blogs.nytimes.com/2010/09/27/jpmorgan-is-shifting-its-prop-trading-desk/#more-292005
Deutsche dis the same…it didnt work, so the Hedgies all got sent back to IB, now Im guessing theyre either out (spun out or fired) or thinking of a move back to AM.
Foreign banks (deutsche, Macquarie, cs, etc). Sure, they are b-teamers now, but they will be the last man standing when finreg pushes all the US banks out