Morning Coffee: Goldman Sachs' new 30 year-old managing director, and others. Mysterious exit of Morgan Stanley MD in Hong Kong
Goldman Sachs promoted some new managing directors on Friday. In a reminder that Goldman Sachs isn't just an investment bank and trading business nowadays, fewer than half (47%) of the 608 lucky new MDs work in the banking and markets business. Another 25% are Goldman's new preferred places of asset and wealth management. The remainder are dotted across Goldman's remaining divisions.
If you're aware of any particularly startling names (or omissions) from Goldman's new MD list, then let us know. For the moment, the prize for being the youngest person there goes to Mike Washington, a Princeton graduate in Goldman's New York equity sales business who turned 30 the day before the promotion.
On the Friday he received the call, the Wall Street Journal says Washington was lurking at his desk, waiting for the phone to ring. It happened around 8.45am and sounded semi-underwhelming. "It was short and meaningful,” Washington told the WSJ of Ashok Varadhan's imparting of the good news. “You take a breath of fresh air, a moment to yourself.” His colleagues made a circle around his desk and clapped.
In London, the promotions included James Roberts, Goldman's 31 year-old head of EM Local Currency SSA (Sovereigns, Supranationals and Agencies) Trading, who arrived from JPMorgan in 2021. Roberts has rapidly expanded Goldman's business to the size of JPM's with only a small team.
In a reminder that it's not just about London anymore, Financial News notes that Goldman's European MD promotions also include various people in Milan (Graziano Gemma, head of cross-markets group), Paris (Florian Granier, equity capital markets, Alessandro Guicciardi, strategic equity solutions, Dorothée Amar, investment grade debt capital markets, Pierre Maugest, consumer and retail investment banking) and Frankfurt (Philipp Suess, equity capital markers, Fredrik Weege, financial sponsor coverage, Steffen Mahringer, natural resources investment banking, Alexander Kretzberg, cross-markets group, René Klos, fixed income derivatives). Five of the new European MDs are in middle markets cross markets group.
31% of Goldman's new MDs are Asian (the same proportion as are women). Many of the new Asian MDs are in New York or London, including Jessica Tung, an MD in the New York private credit group. Its Hong Kong promotions include Angela Fung in the private investor products group and Qi Wu, a quant trader.
Hardly any of this year's new Goldman Sachs MD class are black. - Just 2% of the total, down from 5% two years ago. A spokeswoman told the WSJ Goldman is working on its pipeline. Goldman is also hiring black MDs from elsewhere: four new ones have joined in the past year.
Separately, eyebrows in Hong Kong are being raised about the unexpected exit of Henry Tsai, the bank's head of internet banking. Bloomberg reports that Tsai left suddenly last week and that it's not clear why. Tsai rejoined Morgan Stanley in June 2022 after an excursion in the world of corporate development at Alibaba Group. He worked for Morgan Stanley for 10 years before that, and had been expected to stick around again.
Goldman Sachs is also quietly letting people go. (New York Post)
Ken Griffin says the US Securities and Exchange Commission shouldn't regulate hedge funds trading treasuries in the same way as banks. “The SEC is searching for a problem. If regulators are really worried about the size of the basis trade, they can ask banks to conduct stress tests to see if they have enough collateral from their counterparties..If the SEC recklessly impairs the basis trade, it would crowd out funding for corporate America, raising the cost of capital to build a new factory or hire more employees. t would also increase the cost of issuing new debt, which will be borne by US taxpayers to the tune of billions or tens of billions of dollars a year.” (Financial Times)
Citi might close its once dominant muni business, where profits have lagged. It has nothing to do with political confrontations in Texas. (Bloomberg)
Ed Morse, Citi's head of commodities research, is leaving after 12 years. (Bloomberg)
Adam Matuszewsk, head of exchange group Six, is joining Citadel Securities. (The Trade)
Hunterbrook wants to set up a hedge fund that uses its profits to pay for journalism that, in turn, generates trading ideas for the fund. (Axios)
Four stock-pickers left Balyasny, including TMT investor Rob Bevegni, consumer PMs Jeff Russel and Matthew Gardner, and healthcare PM Chris Kuehnler. (Business Insider)
Noel Quinn, CEO of HSBC wakes up early on results day. “I was so excited, I was awake at ten to three”. (The Times)
BNY Mellon wants to start a multimanager fund. . “My experience is that it’s wrong to assume that all talented [portfolio managers] want to work in a ruthless environment focused on personal performance. In my experience no two talented [portfolio managers] are the same.” (Financial Times)
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