Goldman and JPMorgan bankers gave up vacation for a small payday

With Wall Street officially in a bear market, the setbacks of a few bankers who gave up their holidays for a deal that now seems unlikely may seem inconsequential. After all, it is in the nature of M&A banking for this kind of thing to happen. The bankers themselves admit it: We spent Easter there,” said a disappointed participant at the FinancialTimes. “That’s the life of a banker.”

“It’s” Elon Musk’s wading desire to buy Twitter. If the deal goes through, the FT says a group of bankers at Morgan Stanley, Goldman Sachs, JPMorgan Chase, Bank of America, Barclays and Allen & Co will earn $192 million in fees; Goldman bankers alone will earn $80 million and JPMorgan bankers $53 million. If the deal doesn’t go through, Goldman bankers will only get $15 million and JPMorgan bankers will walk away with just $5 million.

While that may just be the risk of the game, in a year when investment banking fees have fallen to their lowest level since 2016, Musk’s money would be greatly appreciated and Easter would have been a good time to drown the sorrows. if he had definitely not come. Instead, teams of bankers at top-tier houses have sacrificed the holidays for the dangling promise of fees that are unlikely to ever arrive. Even if the deal goes through, the money has already been lost. Much of Easter was specifically spent arranging $12.5 billion in margin loans to help Musk fund the deal; that alone would have generated $375 million a year, but Musk ultimately decided against using the loan facility. You could say that the bankers ended up working for free…

Separately, it seems like any high-profile job these days has another 100 people. There was 125 people chasing every front office last year in the investment banking division of JPMorgan. And now it looks like there are 100 people looking for every job at consulting firm McKinsey & Co.

Bob Sternfels, McKinsey’s managing partner, told the FinancialTimes that the company has received approximately one million applications for the 10,000 jobs it offers over the past year, and that is a record.

Sternfel’s revelation implies it might be easier to get into Goldman Sachs than McKinsey, given that Goldman had just 66 applications for each of his internships last year. Similarly, outside the front office, JPMorgan received only 59 applications per vacancy.

Like large banks, McKinsey strives to diversify its workforce. Sternfels says that until recently, he hired his 10,000 people from 500 “sources.” Now he hires them from 1,000. But he would like to hire from 10,000: each person from a different place.

Meanwhile…

Goldman Sachs executed its first non-deliverable Ethereum futures, a derivative that pays based on the price of ether and provides institutional investors with indirect exposure to the cryptocurrency. (Coindesk)

Ardea Partners, a boutique run by former Goldman bankers, paid its 13 London employees an average of $785,000 each. (Financial News)

JPMorgan is hiring up to 50 Ukrainian refugees in Warsaw. They will join finance, human resources and operations on a 12-month internship. (Bloomberg)

Morgan Stanley electronic trader Grant Allen has joined Millennium. (The Exchange)

HSBC is the latest bank to have a quantum computing program, having launched one last August. Steve Suarez, Global Head of Innovation at HSBC, Global Functions. (WSJ)

Everyone wants to hire private marketers and they get 20-40% pay raises for moving. (Financial News)

In China, Haitong International, China Merchants Bank International and Guotai Junan International have all downsized and some bond bankers have been transferred to equity research teams. (FinancialTimes)

Credit Suisse Group AG, Goldman Sachs Group Inc. and UBS Groupp were warned not to overpay their Chinese bankers. After hiring around 200 people in China last year, Credit Suisse is now delaying plans to set up a local bank and could lay off dozens. (Bloomberg)

Deutsche Bank hires people to work with family offices. It has recruited more than 15 private banking executives for a family office unit since early 2021 and now wants relationship managers in London and Switzerland with family office expertise. (Bloomberg)

The Pagliara unit has already hired more than 15 private banking executives since the start of 2021 from competitors such as Credit Suisse Group AG, Barclays Plc and UBS Group AG to grow Deutsche Bank’s wealth management operations in the world. He is now looking to find relationship managers in London and Switzerland with expertise in family offices. (Bloomberg)

How to Talk to the CEO of an Investment Bank: Rich Handler’s Conversation with a Hedge Fund Manager. (Instagram)

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