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Morning Coffee: HSBC sent rejected candidates an unfortunate email. Citi compliance officer says she was fired for whistleblowing

If you aspire to work for HSBC and have spent hours wooing and being wooed by the bank at recruitment events, been through its recruitment process, and attended some induction events, only to be unexpectedly rejected, you will not be happy. You will be even less happy if HSBC accidentally sends you an email saying it's a shame that you voluntarily withdrew your application.

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This appears to have been what happened to some students in the UK. The Financial Times reports that HSBC bank got cold feet about hiring them because of changes to UK visa rules stating that visa applicants need to be earning £38k ($48k) to be eligible. Some of HSBC's incoming graduate hires weren't due to meet the earnings threshold; it cancelled their offers as a result. 

The afflicted students, who are now left without jobs after their graduate application deadlines passed, told the FT they received automated emails from the bank saying it was “sorry to see [them] go” after they “decided to leave the selection process”. "They are trolling us at this point,” one student observed. A source at HSBC said the bank is looking "into the issue of the automated message.” 

It's not only HSBC who's been withdrawing offers. Big Four firm Deloitte has been doing the same. “Without any back-up jobs and no time to apply to other jobs as I was in my final exam period, I was left stranded by Deloitte with absolutely no warning or prior knowledge about this change. This is an extremely unfair decision,” said one. Fortunately, students going into front office investment banking jobs in London earn salaries closer to £80k and are therefore immune. 

Separately, following yesterday's revelation that Citi might have saved itself $127m if it had only hired a compliance professional to monitor its algorithmic trades, a senior data compliance professional who left the bank in January is claiming that she was asked to mislead a regulator.

Citi says the lawsuit that's being brought by Kathleen Martin, its former data chief administration officer and a managing director at the bank, is "without merit" and that it will "vigorously defend against it.” Martin says she was asked to falsely tell the board and regulators that Citi had hit goals around data governance by her boss, Citi COO Anand Selvakesari.

Martin joined Citi in 2021 from JPMorgan as part of its efforts to clean up its data processes. She previously spent 11 year at Morgan Stanley.

Meanwhile...

Brevan Howard shut two funds run by Alfredo Saitta and Louis Basger. They were subscale and expensive to run. (Bloomberg) 

Two Sigma has chosen its chief data scientist Ali-Milan Nekmouche to run its machine learning and AI team. (Bloomberg)

Alex de Souza, who heads Citigroup’s UK industrials dealmaking team, is moving to Jefferies as co-head of UK and Ireland investment banking. Luke Spells, a managing director at Citigroup who had spearheaded its coverage of UK mid-cap companies, is also leaving the bank. (Financial News) 

When Citi's fat finger trader first input his erroneous trade, he was met with a wall of 711 warning messages. He quickly overrode the ones he could and the order was placed at 8:56 a.m. (Bloomberg) 

Goldman Sachs received 315,126 applications for its 2024 internship program and filled only 2,700 spots. (Business Insider) 

Gokul Laroia, Morgan Stanley's chief executive for Asia, thinks Tokyo is catching up with Hong Kong and Singapore. (Bloomberg) 

Blue Owl Capital hired Chris Eby, Goldman Sachs' head of asset management investment banking. (Bloomberg) 

BNP Paribas is limiting its fossil fuel financing. It's adding aviation, shipping and commercial real estate to the list of sectors now facing limits. (Bloomberg) 

Simon Herrmann, head of Morgan Stanley APAC, is going on sabbatical while continuing to support the team with certain clients. (Bloomberg) 

Ben Clymer left his project manager job at UBS to found a luxury watch website, Hodinkee. It was great to start with, but it's been a while since he's made a profit. (WSJ) 

"When I took my first week of vacation after being at Goldman for over a year, my manager lectured me for not replying to emails or updating financial models during my personal time off. I told him that I had been hiking off the grid with my mom and hadn't had much cell service. 'Next time, choose a vacation spot with better reception, he told me."  (Business Insider)

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AUTHORSarah Butcher Global Editor
  • IC
    ICRM@Citi
    11 June 2024

    Will be interesting to see how that lawsuit by Kathleen Martin develops.

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