Morning coffee: The 32-year-old vice president of Goldman Sachs allegedly risked his career for $146,000. Power oscillates from bankers to banks

If you were a vice president at an investment bank and had a great buy-side job ahead of you, would you risk it all for a fraction of your annual salary? Brijesh Goel says his name has been unfairly misrepresented, but the SEC has accused him of insider trading.

Joel, now 37, worked at Goldman Sachs between 28 and 36 years. He ended up as vice president, a role that pays his salary alone in New York as high as $275,000 according to H1B visa data. Last year, Goel moved to Apollo Global Management as the lead in structured finance, and is likely to earn more — Apollo paid its first-year partners $550,000 in 2021.

Today, however, Goel is on indefinite leave of absence from Apollo pending an investigation into insider trading charges. The Securities and Exchange Commission (SEC) claims that over the course of two years he passed on information about potential mergers to an old friend who was a trader at Barclays Capital, that the friend was trading that information, and that they split their profits. The gains were meager: the two men made $292,000 in total, mostly from a single deal; Others get them nothing at all or only get $600. The two men played squash together and were accused of using symbolic language like “Have you booked the court?” To refer to their alleged nefarious activities.

Joel’s lawyer told the Financial Times that he looks forward to proving his innocence: “Unfortunately, the government was quick to charge Brigish over what appeared to be he said one person about something that supposedly happened years ago before Brigsch’s current job – without giving Brigsch a chance to speak with them, smearing His name is unfair…”

Separately, after a year of high wages and bitter complaints about the overwork that banks have had to contend with, junior bankers may soon have to simply get rid of it. As revenues in capital markets show no sign of recovery and M&A returns join the decline, longtime bank watchers say the balance of power is shifting.

“Power has shifted from employee to employer,” Mike Mayo, chief banking analyst at Wells Fargo, told the Financial Times. “What happened over the last two years when employees said they were working too long hours, that they wanted extra benefits and this and that, was an exception . . . that was a moment [that has] Come and go.”

However, calibrating the cuts is not easy, Mayo added: “Cut deep and you then have to push to get it back while playing catch-up. The other danger is that you don’t make the required moves and you’re stuck with overhead.”

while…

Junior bankers still want to work from home and people leaving the big four are going back to the big banks because they don’t want to be in the office. “People don’t want to work like that anymore. A lot of people have left for investment banks over the past 12 months and come back. They said the way they were expected to work was ridiculous.” (financial news)

Goldman Sachs bankers called their business to sell The £5 billion worth of bonds and loans backing private equity firm Clayton & Dobellier & Rice’s £10 billion takeover of Morrisons grocery Project Magnum, but it wasn’t very impressive. Sixteen underwriters working on the deal have already done work 200 million pounds loss and there is another £400m in losses when debt is flagged in the market. “It’s just unrelated to Goldman. They’re usually ahead when the tide starts to turn.” (financial times)

Drew Goldman, The global head of coverage and investment banking advisory at Deutsche Bank is stepping down after 23 years. Dealogic says dealmaking fees for Deutsche are down 46% this year. (financial news)

Drew Goldman joins Abu Dhabi Investment Authority, Chairman of Real Estate Investment. (Bloomberg)

Moelis & Co is creating a new blockchain group under John Mumtaz, Global Head of Media Investment Banking. “We love timing. We think piling on the good days and saying, ‘We’re here, ready to help’ sounds less true than when there’s a challenge. Any disruptive technology will have its ups and downs.” (Bloomberg)

The asset management arm of Banque Montreal has appointed 13 equity portfolio managers inside toronto Next to Healthcare, Technology, Industry, Finance and Consumer Equity. (Bloomberg)

Julius Baer has made some big write-offs for his historic IT investments. (Inside Paradeplatz)

Julius Baer introduced a decision to freeze appointments to non-relationship director positions. (financial times)

Barclays will start buying again $17.6 billion in securities after she accidentally sold a lot of them. Repurchases will take place between August 1 and September 12. Barclays has already charged $651 million in fees in connection with the matter, and the costs will only rise. (Bloomberg)

Burnout comes from doing all the little jobs you weren’t assigned to do. (The Wall Street Journal)

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