Morning Coffee: Jefferies’ results intimate horrors in banks’ trading businesses; students worldwide have gone off J.P. Morgan

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Barclays isn’t the only one. It’s starting to look like the third quarter was terrible for fixed income trading businesses everywhere.

As we reported earlier this week, Barclays’ fixed income sales and trading revenues seemed to have fallen by 50% in the third quarter. That’s bad. It’s good, however, compared to the 88% fall in fixed income sales and trading revenues reported by Jefferies yesterday. In the three months to August 2013, Jefferies’ FICC revenues were $33m. In the three months to August 2012 they were….$266m.

What went wrong? Jefferies CEO Richard Handler said something about unsettled markets and subdued summer activity. Things have apparently improved quite a bit there in September. Still, that’s a big drop. Fixed income traders everywhere should take note. Jefferies’ spending on compensation seems to have fallen (almost) concomitantly – it was down 60% in the third quarter compared to Q1.

Separately, a new ranking of the world’s most favourite companies to work for according to students is out courtesy of Universum. You can see the full list of the World’s Most Attractive Employers here. Suffice to say, Google is top. Ernst & Young and Goldman Sachs rank second and third in business students’ preferences respectively. Notably, J.P. Morgan seems to have slid down the list in recent years – in 2009 it was 7th, in 2011 it was 8th, now it’s 11th. There was a time when J.P. Morgan was top – among students in the UK, at least.


Yes, the third quarter was bad for fixed income. (Bloomberg)

Yes, the third quarter was bad for fixed income II. (Financial Times) 

Jamie Dimon wrote this rousing memo to JP Morgan staff. (Financial Times) 

Jamie Dimon’s says JPMorgan has increased spending on technology related to regulatory controls by 27% this year. (Wall Street Journal) 

Staff at JP Morgan have undergone 750,000 hours of training on compliance issues.(Guardian)

JPMorgan will be creating jobs internally, instead of using outside vendors. (eFC)

Dimon’s daughter turns her hand to business journalism. (PolicyMic)

An interview with James Gorman’s musical daughter. (NY Mag) 

Highest paid partner at distressed investor Oaktree Capital management earned £10m last year.(Financial News) 

Interning at a big bank has become a form of military indoctrination designed to mold you into the kind of brainless non thinking machine that destroys your character and makes you a tool for the bank. (Bankers Umbrella) 

Goldman Sachs Elevator defends satirical list on manhood. (NY Mag) 

Intelligent and lazy people are the best leaders. (Farnam Street)


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