On Monday night, Citi CEO Mike Corbat appeared on a panel at NYU’s Stern School of Business alongside hedge fund manager John Paulson and private equity chief Joseph Landy. The conversation was free flowing and touched on a number of subjects du jour, like too-big-to-fail, post-crisis regulation, and the future of the global economy, but, as he was speaking before students, Corbat was also there to make the case for people to come work at Citi. Knowing full well that the banking industry in general and Citi specifically probably holds little if any allure for the junior banking set these days, he put on a happy face nonetheless and really committed to the part, telling those assembled:
1. Despite regulatory constraints, it’s still a super fun time to be a banker.
2. Banks are going “digital” so you could think of yourself like a pioneer, on the Oregon Trail.
3. Bottom line: We’re all adults here. Everyone knows you all want to go to a PE firm or hedge fund but not everybody’s gonna because there literally aren’t enough chairs to go around at these places. Their offices aren’t that big, relatively speaking, and there straight up are not enough places for people to sit. I’m not stupid, I get it. Who wouldn’t want to go work for Paulson and Co. over a bank, especially when that bank is Citi. But again, it just comes down to math. So when you get the “We’ll be in touch line” from them, you come give me a call. Read more »
Reason Number One the abrupt departure of Pimco Chief Executive Mohamed El-Erian will not only not hurt the firm but will in fact help it: the old structure of having one chief investment officer sucked. The new structure of having six deputy chief investment officers rocks.
Reason Number Two Pimco 2.0 will make Pimco 1.0 look like a “Before” picture: seating arrangements.
Reason Number Three El-Erian did everyone a favor by leaving: because Bill Gross has an exclamation point that says so. Read more »
Former SAC Capital Advisors LP fund manager Mathew Martoma was portrayed by his lawyer as the victim of a “rush to judgment” by prosecutors looking to use him to bring insider-trading charges against his former boss, Steven A. Cohen…“Mathew was just a grain of sand in their haste to make a case against someone who is not even in this courtroom: Mathew’s boss, Steven Cohen,” Richard Strassberg said in his closing argument yesterday in Manhattan federal court. [Bloomberg]
Q: You couldn’t have not known what was happening. The central figure, the former deputy chief of staff Bridget Kelly, was one of your own most senior aides. A: …The fact that every day, 65,000 people have letterhead with my name on it and I don’t know what they’re doing all day. Now I understand that people say well, this isn’t one of the 65,000 — this is someone in your office. You know, the fact is, as I said at the press conference, Matt, if someone doesn’t tell you the truth, there is often very little you can do in reaction to that. So, no, anyone who would say that has no appreciation for what it’s like to be governor or, frankly, chief executive of any kind of major organization. That’s like saying any of these folks who’ve been in trouble in the banking industry, like the JPMorgan Chase thing – how could Jamie Dimon not have known about a trade that was being put on by a trader in London? Well, you know, I think it’s fairly safe to say that Jamie Dimon didn’t know that a trade was being put on, and that when people lied about it, he didn’t know they were lying. So it happens. [Matt Bai via BI]
Cohen is not likely to testify at Martoma’s trial next month, citing his Constitutional right against self-incrimination. But Martoma’s lawyers would like his testimony from last year to speak for him—and to show that Martoma had nothing to do with the trades that led to his indictment. In a pre-trial motion, Martoma’s lawyers cited Cohen’s statements that he elected to sell the firm’s stake in pharmaceutical company Wyeth LLC not because Martoma suggested he do so—but because former SAC trader Wayne Holman did. Holman, who ran the defunct Ridgeback Capital Management, had a $20 million consulting deal, and Cohen said that the week SAC sold Wyeth, Holman “was telling me he was selling his Wyeth.” [FINalternatives]