Morning Coffee: Deutsche Bank's curious junior hiring binge. Goldman Sachs' new top women

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Did someone say "juniorization'? Deutsche Bank, which is in the process of cutting 7,000 people and has cut 1,700 so far, has significantly increased its recruitment of graduates this year.

Business Insider reports that Deutsche's 2018 global intake of analysts - typically new graduates - is 25% higher than 2017's at 800 people, including 211 in corporate finance, 177 in technology and 128 hires in global markets. This is Deutsche's second largest intake of analysts ever.

The German bank's swollen graduate ranks come after Peter Selman, Deutsche's still-new head of global equities, told Bloomberg in February that he planned to, "focus a lot on graduate recruiting" rather than, "a lot of very high-priced, expensive lateral hires.” Nonetheless, it looks like corporate finance is the biggest beneficiary of the graduate binge.

Surprisingly, as the overall class has grown Deutsche's intake of technology graduates has fallen. While banks like Goldman Sachs and J.P. Morgan boast of their credentials as technology firms and go out looking for ever increasing numbers of STEM graduates, Deutsche Bank's intake of junior technologists went from 186 last year to 177 this year.

Deutsche's new graduates are already in situ. They've just arrived for their orientation week and will be settling in over this summer. As such, they will have been chosen last year and are therefore they work of former Deutsche Bank CEO John Cryan rather than Deutsche Bank's current cost-cutting CEO Christian Sewing. Deutsche's new juniors therefore need to hope that the new CEO is in agreement with his predecessor's strategy. If not, their tenure at the bank could be shorter than expected.

Separately, Goldman Sachs' soon to be CEO David Solomon is already putting his stamp on the firm.

A known supporter of diversity issues and a father of two daughters who wants to help women get ahead, Solomon added three women to Goldman's executive board, almost doubling their presence there in the process.

The new top Goldman women are: chief strategy officer Stephanie Cohen, who only made partner four years ago and has been promoted impressively quickly; Alison Mass, head of the investment-banking division’s financial and strategic investors group, and Sheila Patel, head of the international asset-management business. Solomon also elevated one man: chief administrative officer Lawrence Stein.

Goldman's executive committee now has 33 people. Last week, there were reports that Solomon was thinking of reducing the size of the management committee.  As he stamps his authority on the business, these four promotions may soon be followed by a larger number of layoffs.


Blackrock is expanding in France, Germany, Italy and Switzerland. "We have to be local in every market..... You can’t just fly in people from New York or London. We have brought in country chairmen. That’s making sure we have people who are integrated in the local markets.” (Financial Times) 

U.S. banks complain that UK taxes are too high. “This is not a cheap place to do business any more from a tax perspective...If I have a loan book here versus somewhere else, why wouldn’t I look at moving that?” (Financial Times) 

Barclays is creating a new technology and operations centre in Scotland and hiring 2,500 staff. The bank is committed to hiring locally, including staff with disabilities and younger people struggling to find work. (Financial News) 

Barclays hired a new head of electronic equities origination for America from Credit Suisse. (Business Insider)

Standard Chartered insider says head of compliance was sacked for telling "dad jokes." (Financial News) 

State Street will be hiring at Charles River. (TheTradeNews) 

Google employees who wake up at 4am to catch flights in order to have 11 meetings in a day also fantasize about leaving and founding start-ups. (Financial Times) 

Facebook is doubling its office space in London and creating room for another 6,000 work stations. (Reuters) 

Highly intelligent people are twice as likely to be short-sighted as people with low IQ scores. (New Scientist) 

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