If you were a vice president at an investment bank with a stellar buy-side career ahead of you, would you risk it all for a fraction of your annual salary? Brijesh Goel says his name was unfairly stained, but the SEC accuses him of insider trading.
Goel, now 37, worked for Goldman Sachs between the ages of 28 and 36. He found himself vice president, a role that alone brings in a New York salary of up to $275,000 according to H1B visa data. Last year, Goel joined Apollo Global Management as a principal in structured finance, and likely earned even more — Apollo paid its first-year associates $550,000 in 2021.
Today, however, Goel is on indefinite leave from Apollo pending an investigation into the insider trading charges. The SEC says that for two years he passed information about potential mergers to an old friend who was a trader at Barclays Capital, that the friend traded on that information and they split their earnings. The winnings were miniscule: the two men won $292,000 in total, and that mostly came from a single trade; others earned them nothing at all or only $600. The pair played squash together and are accused of using coded language like “Have you booked the court?” to refer to their allegedly nefarious activities.
A lawyer for Goel told the Financial Times he was eager to prove his innocence: “Unfortunately the government moved quickly to charge Brijesh for someone’s apparent word about something that allegedly happened. years ago before Brijesh’s current employment – without giving Brijesh the chance to speak with them, unfairly tarring his name.”
Separately, after a year of high pay and bitter complaints about the overwork banks have been forced to submit to, junior bankers may soon just have to suck it up. With capital markets earnings showing no signs of recovery and mergers and acquisitions earnings joining the decline, longtime banking watchers say the balance of power is shifting.
“The power has shifted from the employee to the employer,” Mike Mayo, a top banking analyst at Wells Fargo, told the Financial Times. “What happened over the past two years with employees saying they were working too many hours and wanted extra benefits and this and that, was an exception. . . it was a while [that has] come and go.
However, calibrating the cuts is not easy, Mayo added: “Cut too deep and you have to pay afterwards to get them back while you play catch up. The other risk is that you don’t take the necessary moves and get stuck with bloated overhead.
Junior bankers still want to work from home, and people who leave the Big Four for big banks come back because they don’t want to be in the office. “People don’t want to work like that anymore. Several people left for investment banking in the last 12 months and came back. They said it was ridiculous the way they were expected to work. (Financial News)
Goldman Sachs bankers called their work a sellout £5bn of bonds and loans backing private equity firm Clayton, Dubilier & Rice’s £10bn buyout of Morrisons ‘Project Magnum’ grocer, but it hasn’t been very bright. Sixteen subscribers working on the operation have already made a £200m loss and there’s another £400m in losses when the debt is marked to market. “It’s just very anti-Goldman. They’re usually up front when the tide starts to turn. (FinancialTimes)
Drew Goldman, Deutsche Bank’s global head of investment banking hedging and advisory steps down after 23 years. Dealogic says Deutsche’s trading fees are down 46% this year. (Financial News)
Drew Goldman joins the Abu Dhabi Investment Authority leading the real estate investment. (Bloomberg)
Moelis & Co creates a new blockchain group under John Momtazee, its global head of media investment banking. “We love the moment. We think hoarding the good days and saying, “We’re here, ready to help,” feels less authentic than when there’s a challenge. Any disruptive technology is going to have volatility. (Bloomberg)
Bank of Montreal’s asset management division has hired 13 equity portfolio managers in Toronto on the other side healthcare, technology, industrials, financials and consumer stocks. (Bloomberg)
Julius Baer made significant write-downs of its historical IT investments. (Inside Paradeplatz)
Julius Baer introduced a hiring freeze for non-relationship manager positions. (FinancialTimes)
Barclays will start buying $17.6 billion worth of securities after accidentally selling too many of them. Redemptions will take place between August 1 and September 12. Barclays has already taken charges of $651 million over the case, and the costs are only mounting. (Bloomberg)
Burnout comes from doing all the odd jobs you weren’t actually hired to do. (WSJ)
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