Deutsche Bank is about to hire some quirky junior staff

Here’s an “estimate” question that probably won’t appear in any investment banking interview any time soon because the answers aren’t the ones many recruiters want to hear:

If you take the top quartile of the total number of graduates from the top 20 MBA programs, subtract everyone who received an offer from a tech company and assume 10 percent of them go into startups and another 20 percent hating the banking industry No matter what, divide by the number of spots in investment bank associate programs, how disappointed some recruiters will be, especially considering they’re trying to achieve diversity goals while working exclusively from one pool set, which itself is not necessarily very diverse?

Since the end of the era when Wall Street could pick the very best graduates from the very best schools, with only the occasional eccentric course at McKinsey or Bain, something like this problem has cropped up every year. At Columbia, for example, the percentage of MBAs who went into finance used to be 30%, now it’s closer to 15%. And there’s absolutely no guarantee that these are more likely to be in the top 15% than those who couldn’t get offers from Google and Amazon. According to “people familiar with the matter” German plans to be the youngest bank to do something about it.

Something like a “back to the future” has the new strategy of hiring employees from the legal profession, accounting firms, consulting and industry; this used to be much more common. People went into banking on the recommendation of their army buddies, or talented young people were spotted in corporate finance functions. Even to this day Michael Ilgner – the Global Head of HR at Deutsche Bank, who is probably ultimately responsible for the new policy – ​​found his way into the top ranks of the banking industry via management consultancy, the Olympic water polo and the Deutsche Sporthilfe foundation. It prevents an intellectual monoculture and means there are some people from the world outside of banking.

Or at least that’s how it’s supposed to work. The danger, of course, is that you end up recruiting people who aren’t quite ready for the world of banking. The good thing about MBAs is that you can usually do it just rely on them have a general understanding of finance. More and more MBA schools are holding practical courses in all things financial modeling, so they are no longer as wet as they used to be. And more importantly, the MBA qualification usually involves an element of bullying and adapting to a work culture night owls and networking. These are the elements of the job that people can find most difficult to convey, especially once they’ve become accustomed to the ways other industries work. It’s not for nothing that the banks are recruiting so massively at business schools that even the Germans can’t do without it entirely.

Elsewhere, bankers in New York and Europe whose gyms are closed can only look enviously at their Hong Kong counterparts as the globals Crossfit open competition begins. It’s an annual event that pits lean, muscular, extremely daring pros against each other by recording videos of themselves doing workouts from increasingly outlandish awkwardness in hopes of winning a trip to California to do the same in person. Naturally, in much of the world, people will be swinging kettlebells around their living room or annoying neighbors downstairs by jumping rope. But in HK the “boxes” are open so they can stand around and encourage each other. With the financial pros leading the way as always when it comes to competitiveness – the portfolio manager and the Bain man both say they love to start the day – it could be Hong Kong’s World Cup year of exhaustion.

In the meantime …

Deutsche Bank’s wealth management subsidiary, DWS, has taken an even more radical approach than just diversifying beyond MBAs. No more CEO titles, a flatter management system and faster advancement for high-performers. This is actually a 2019 initiative, but felt that taking titles away during a pandemic would have been a bit too much. (Bloomberg)

As the song says, “Look out ’cause I’m a lyricist / Miami’s on the scene just in case you didn’t know”. Like Goldman’s Jason Matthews, John Lowrey, Citi’s global head of electronic stock markets, appears to have headed towards the sun — according to his LinkedInhis new consulting firm, Imbrium, is based in Naples, Florida (The Business News).

Even New York mayoral candidate Andrew Yang is worried – he said he was “depressed” after allegedly learning from a Goldman Sachs executive that they were opening an office in Tampa. (Bloomberg)

Bill Ackman has a fan club on Reddit that follows announcements about his SPAC with QAnon-like zeal, trying to do the internet sleuthing to figure out which company he’ll end up acquiring. Redditors’ best guess right now is that it will be Stripe, the payments company. Mr. Ackman apparently reads the r/PSTH forum and says he “doesn’t want to disappoint” people who photograph his head on Bruce Lee movie posters. (Institutional Investor)

Goldman Sachs has never been bigger in Singapore, with 100 planned hirings bringing the workforce there to over 1,000. (Bloomberg)

One of the problems with the “whole bank approach,” a core strategic concept at Credit Suisse, is that there’s something wrong with providing an integrated package of lending, advisory, capital markets, and wealth management services to a client like Lex Greensill several contact points and the entire bank is put to the test. (subtleties)

Citadel remains looking to expand its credit department led by Pablo Salame – they have now hired Zachariah Barratt, head of corporate credit trading at Apollo. (Bloomberg)

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