The Wall Street Job Report

UBS Warns of Costs of Battle for Talent in Asia

Alison Tudor, Wall Street Journal, January 13, 2011

HONG KONG—The battle for financial-services talent in Asia is causing costs to spiral and will lead to a shakeout in the industry, UBS AG's joint chiefs for the region warned in an interview.

Banks such as Barclays PLC, Deutsche Bank AG and Citigroup Inc. have been ramping up headcount since the financial crisis, seeking to advise the region's wealthy entrepreneurs and fast-growing companies.

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Moelis Hires Garcia for Financial Institution Clients

Gavin Finch and Brett Foley, Bloomberg News, January 11, 2011

Moelis & Co., the investment bank founded by Kenneth Moelis, hired Guillermo Garcia as a managing director to work with its clients in Europe, the Middle East and Africa’s financial-services industry.

Garcia joined from Richmond Park Partners LLP where he was the head of the advisory boutique firm’s financial institutions business. He will work in London and report to Mark Aedy, head of investment banking for the region, Moelis said in a statement.

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JP Morgan downgrades Goldman Sachs on Volcker rule

Matt Turner, Financial News, January 13, 2011

JP Morgan analysts have downgraded Goldman Sachs to a neutral rating, arguing that its US rival will be more impacted by the Volcker rule than any other bank with more than half of its expected investment banking revenues set to be affected by market making limitations.

JP Morgan's banks analysts, led by Kian Abouhossein, said in a portfolio snapshot note yesterday that European investment banks were now preferable over US rivals, citing superior risk-reward at European banks, and a material benefit for European banks arising from the Volcker rule.

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Barclays Capital Said to Eliminate About 200 Jobs in U.K. Following Review

Gavin Finch and Ambereen Choudhury, Bloomberg News, January 12, 2011

Barclays Capital, the securities unit of Barclays Plc, has cut about 200 jobs following an internal review, a person familiar with the matter said.

The cuts hit investment bankers and support staff in the U.K., said the person, who declined to be identified because the matter is private. The decision follows a review started last year, people with knowledge of the plan said two months ago. The bank plans to cut between 500 and 600 jobs globally in the division, another person briefed on the decision said.

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Trader Pay Tops Brain Surgeons' and Shows Gap Weathers Crisis

Danielle Kucera and Christine Harper, Bloomberg News, January 13, 2011

Wall Street traders discouraged by declining bonuses this month can take solace: They still earn much more than brain surgeons and top U.S. generals.

An oil trader with 10 years in the business is likely to earn at least $1 million this year, while a neurosurgeon with similar time on the job makes less than $600,000, recruiters estimated. After a decade of deal-making, merger bankers take home about $2 million, more than 10 times what a similarly seasoned cancer researcher gets (see table below).

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