The expected cost of new regulations being implemented from financial reform was cited at the SIFMA Dodd-Frank impact Analysis conference as one reason banks are reluctant create new jobs. "There's a capital strike going on in corporate America," said Larry Kudlow, economist and host of the CNBC program, "The Kudlow Report." Speaking at the conference, Kudlow went on to say banks are "afraid to take the risk of hiring until... Read more

The idea of taking a pay cut is anathema for all working professionals—especially for finance execs used to handsome compensation packages. But many are finding their paychecks and pocketbooks to be much leaner this year. For those impacted by a slash in pay, unlike before, most are choosing to stay put, says Ken Murray, president of Mercury Partners, an executive search practice for front office finance professionals. He says it’s... Read more

Investors, hungrier than ever for high returns, are forcing asset managers to become more competitive, Reuters reports, citing research from Boston Consulting Group. The asset management industry is still recovering from the financial crisis and profit margins peaked at 39 percent in 2007, just before markets collapsed, Reuters says. Margins are now at just 33 percent. The volume of managed assets around the world gained 8 percent to $56.4 trillion... Read more

The earnings forecast for Wall Street’s biggest firms is looking dire. Analysts are slashing their second quarter projections for Goldman Sachs, Morgan Stanley and other firms, citing revenue declines of a third or more in bond, currency and commodity trading, Reuters reports. “Slow economic growth, skittish trading clients and regulatory worries that just won't go away -- the second quarter has been a punishing one for Wall Street's top investment... Read more

Sometime in the past year or so it became important to be creative when applying for a job. That doesn't mean you can get creative with your resume by embellishing some of your achievements. What that means is the people looking to hire you, especially Investment Banking types, are seeking out those applicants who approach problems creatively. In fact, recent studies have shown that creativity is quickly becoming one of... Read more

Throughout life, there is always a celebrated group of financial professionals who succeed while many others fail. It doesn’t matter if you’re working in M&A, or Asset Management, whether you’re a risk manager or a Wealth Advisor, the financial services sector is one of the most competitive industries on the planet and it can be divided into two distinct groups, the winners and the losers. The questions are what is... Read more

Bank of New York Mellon's (BNY Mellon) Wealth Management division has entered the nation's third largest wealth management market with the acquisition of Talon Asset Management of Chicago's wealth management operations. BNY Mellon, a global leader in investment management and investment services, announced today that it has completed its purchase of Talon's wealth management business and has named Managing Director Michael DiMedio regional president, located in the Chicago office. This adds... Read more

Credit Suisse Asset Management today announced the launch of its Systematic Trading Group that will offer investors access to actively managed liquid trading strategies. These are strategies that seek to achieve risk-adjusted returns with relatively low correlation to traditional markets within a pre-defined risk management framework. In a statement released today, the firm said the group will be managed by Mika Toikka, formerly the Global Head of Risk and Strategy... Read more

While other financial institutions are dumping their reverse-mortgage businesses, MetLife has been pouring resources into the sector with the aim of leading the industry. An Investment News story notes that, "The reverse mortgage was the most prominently featured product last week on the web site of MetLife Bank, a unit that the company said may hedge the parent against declines in the main insurance business." After entering the business in 2008... Read more

The hybrid registered investment adviser model – designed to allow investment pros to act as registered reps of a member firm while branding themselves as independent brokers – seems to be failing, according to an opinion piece in Investment News. As these models evolve, so too does regulation. Last year, 140 such operations tanked. The piece’s author, Todd Pack of Financial Advisers of America, writes: “What is becoming clear is... Read more

A lagging recovery from the financial crisis, numerous debt crises in Europe and the future of regulation mean banks are tightening their belts and handing out pink slips, DealBook reports. Goldman reportedly plans to slash 10% of non-compensation expenses over the next year, as well as cut headcount, though the numbers have not yet been revealed. BofA is expected to announce layoffs in its securities unit, while Credit Suisse is... Read more

While financial planning jobs abound – openings have exceeded pre-crisis figures – advisory firms are reluctant to fill them with entry-level job hunters, according to an Investment News story. The article goes on to explain: “Solo practitioners are second-guessing their abilities to spot good candidates and to train them. Large firms, meanwhile, are reluctant to invest in training new recruits for fear that they will be lured away once they develop... Read more

With fewer deals to grab, buyout specialists are shifting gears as asset managers that run hedge funds and strip malls. Blackstone is earning twice as much from owning property as from buyouts; Carlyle has morphed into a fund-of-funds business by taking over hedge funds; and KKR now owns a stake in a 5,500-mile U.S. pipeline and lends to distressed companies, according to a Bloomberg article. The story goes on to... Read more

Top banks in Indonesia are rolling out hundreds of microlending branches, the latest indicator that global financial institutions are bullish on the service which reaches the multitudes of less affluent, according to a Wall Street Journal article. While microlending has triggered debt crises in Indonesia, the total amount of microloans in the country has surged 75% in the past five years to more than $30 billion. The country is estimated... Read more

Sometimes using recruiters works better than applying directly to banks. And if you put in extra effort when choosing your consultants, your career could benefit. Here are some reasons why. 1) Screen and select There’s a limited number of large financial services firms and it’s difficult to look into the quality of their internal hiring teams. But recruitment firms are comparatively plentiful, so you should at least be able to find... Read more

BlackRock’s stock fell 16% last year, but its chairman and CEO Laurence Fink, took home $23.8 million in 2010, topping Bloomberg’s ranking of top-paid financial executives, according to this story . Prudential’s John Strangfeld came in second with $22.6 million, while insurer AON came in third by paying its head Gregory Chase $20.8 million. Average compensation for Finance 50 CEOs who held the same job in 2009 rose 26% to... Read more

A study released today by The Business Journals shows that employment in the financial sector has rebounded in 21 states, but New York isn't one of them. In fact, the survey found that New York has lost 64,400 financial-services jobs in the past 10 years. California, with its decline of 70,600 jobs over the past decade is the only state to lose more. The study shows that 21 states have more... Read more

Legg Mason’s head of U.S. broker-dealer sales Joe Lohrer is leaving the firm for Blackstone—the latest in a string of departures from the asset management company, Investment News reports. Lohrer, a 25 year veteran of the firm, will be replaced by Bryan Ward, head of internal sales, while Benji Baer, head of U.S. intermediary marketing, is leaving the firm after a seven-year stint for J.P. Morgan Asset Management as a... Read more

An estimated three out of four (75%) of US broker-dealer and independent registered investment advisory (RIA) firms plan to hire up to 30 percent more employees over the next 12 months, according to a new poll conducted by Fidelity Investments. According to the poll, firm executives reveal that their top staffing priority in 2011 is to recruit new advisors/brokers that have existing books of business followed by those who plan... Read more

An estimated three out of four (75%) of US broker-dealer and independent registered investment advisory (RIA) firms plan to hire up to 30 percent more employees over the next 12 months, according to a new poll conducted by Fidelity Investments. According to the poll, firm executives reveal that their top staffing priority in 2011 is to recruit new advisors/brokers that have existing books of business followed by those who plan to... Read more