Front page scandals have cost Wall Street thousands of jobs in recent years. Now, ironically, the shoe is on the other foot. Facing more than a half-dozen investigations by the Justice Department alone, J.P. Morgan is beefing up its compliance and risk control units at a near unprecedented level.
The Wall Street Journal is reporting that J.P. Morgan plans to spend roughly $4 billion to help clean up its risk and compliance issues; roughly a third of the money will be earmarked for new hires. The bank could add as many as 5,000 new staffers this year alone.
Chief Executive Jamie Dimon is also giving risk and control execs more autonomy to do their job. With a helpful nudge from regulators, Dimon has changed the hierarchy within the bank. Risk managers no longer report to business executives, who quite often have conflicts of interest when it comes to compliance. Dimon also hired consultants from McKinsey, Ernst & Young and other firms to help ensure another “London Whale” doesn’t come crashing down on his desk.
If you’ve got a background in risk, compliance, audit or operations, now is a pretty good time to knock on J.P. Morgan’s door. If you don’t, check out our recent piece on how to break into the space. It’s not easy, but compliance jobs aren’t going anywhere anytime soon. The job security and pay are increasing every year.
Day in the Life of a Trader (eFinancialCareers)
Want to know what it’s really like to be a sell-side trader? The days are long and tiring, and the business is as relationship-driven as ever, perhaps more so. We asked a trader at a boutique firm to chronicle his work day, from waking up to shutting down.
Poaching War (WSJ)
Berkshire Hathaway has poached an astounding 15 employees from AIG as it builds out its insurance unit. AIG reportedly threatened to sue Warren Buffett’s firm, resulting in a one-year truce where the two firms agreed to refrain from talent poaching for a full year.
Same Old, Same Old (eFinancialCareers)
Five years after the financial crisis, many of the same top executives are running the biggest subprime lenders and new rules are doing nothing to discourage another wave of people flocking to risky adjustable-rate mortgages.
Gloves Are Off (Reuters)
At least three SAC Capital traders have left the firm to join Millennium Partners. The two companies once had an informal agreement to not poach from one another, but that was before the insider trading scandal. Oh, and SAC just laid off dozens of sales and marketing folks. Not a shocker.
When Life Gives You Lemons…(FIN Alternatives)
The Lehman Brothers collapse was a nightmare for some hedge fund clients. Others, like Elliott Management and Paulson & Co., have made a killing off the bankruptcy by buying up claims against the Lehman estate at a massive discount. A pretty savvy way to make lemonade.
‘Cozy Relationship’ (NY Times)
Promontory Financial Group and PricewaterhouseCoopers have been subpoenaed as part of a broader investigation into the consulting industry’s poor handling of regulatory problems on Wall Street.
Buzz Around the Office
Segway Out of Control (MSN)
The Segway is a terrible invention. Here’s video proof supporting that fact.
List of the Day: Resume Faux Pas
These commonly used resume phrases drive recruiters and hiring managers crazy. Get them off your resume.
- Team player.
(Source: The Telegraph)