If TARP-imposed bonus limits are pushing the best talent away from Wall Street, Citigroup and Bank of America are being hit particularly hard. That's what CNNMoney says, anyway, as it reports the "brain drain that big banks have worried about ever since the government stepped in to bail out the financial sector appears to be well underway." Citi and BofA, the Web site notes, are "the two banks that have received... Read more

The severity of the recession and the credit market freeze have financial services companies slicing the number of employees they send overseas. "In the current environment there's a volume reduction and a reduction in the scope and generosity of the benefits being provided," says Scott Sullivan, executive vice president of Brookfield Global Relocation Services, the Woodridge, Ill., firm whose recently released survey included the findings. The magnitude of the change is so... Read more

Although Canada's unemployment rate stands at 8.4 percent, its highest level in years, and the jobs picture in the Canadian financial industry is not exactly frothy, recruiters say signs of equilibrium are returning. "Clearly the financial services market globally has still not recovered, but the recruitment market has plateaued somewhat, "says James Mayo, operating director for the financial services practice of Michael Page Canada in Toronto. "There is still some right-sizing... Read more

Crain's New York Business argues Wall Street job losses have been exaggerated. Citing recent data from the New York Department of Labor, the newspaper says only 19,000 financial services jobs have disappeared from the Big Apple since August 2008. Sure, three of the five largest investment banks are gone, and Citigroup and AIG are now wards of the state. And yes, there has been severe contraction, including painful job cuts, especially... Read more

Maybe it's been a tough year, but there are signs Wall Street might soon get back to its old pay practices. At least the New York Times thinks so. Sunday's paper says six big banks set aside $36 billion in the first quarter for employee compensation. "If that pace continues all year, the money set aside for compensation suggests that workers at many banks will see their pay - much of... Read more

Lloyd Blankfein (2008 compensation $43 million) thinks Wall Street needs to rethink the way financial people are compensated. What's needed, he says, are "basic standards." Among the guidelines the Goldman Sachs chief executive suggested in a speech to the Council of Institutional Investors: Only junior employees should be paid mostly in cash, and the percentage of pay that comes as company stock should increase along with a worker's pay. He also... Read more

Dozens of boutiques are quietly hiring bond traders and sales people as they grow on top of the wreckage of former bulge-bracket institutions. The upstarts range from relative newcomers BTIG LLC, Broadpoint Securities Group and ICP Capital, to decades-old firms like Cantor Fitzgerald that are gearing up to capitalize on wide bid-ask spreads and an ample supply of talent fleeing major investment houses. The boutique firms aim to do business "the right... Read more

Canada is reclaiming David Rosenberg. Bank of America's chief North American economist, who held that role at Merrill Lynch for many years, reportedly will depart in May to join a Toronto-based private wealth management firm, Gluskin Sheff & Associates. Rosenberg is the latest in a parade of high-profile former Merrill Lynch staffers to exit since the Bank of America acquired Merrill on Jan. 1. Another new departure is Richard Bernstein,... Read more

Structured credit analysts, take note: Credit rating firms may soon need your services again. The first deals backed by the Federal Reserve's new Term Asset-Backed Securities Loan Facility (TALF) reached the market this week. Those bonds – auto loan ABS from Ford and Nissan totaling $4.3 billion, plus $3 billion Citigroup credit-card ABS – set the stage for as much as $1 trillion of ABS deals that could be issued in... Read more

First came asset write-downs. Then came bailouts. Now, the U.S. government is taking a large, voting equity stake in Citigroup. The chain of events pulling significant pillars of the financial industry from shareholder to government control is coming to look increasingly inexorable. But what does nationalizing a bank do to the careers and compensation outlooks of professionals who work there? Constrained upside will drive producers and senior executives to seek... Read more

The devolution of UBS's investment bank continues. UBS AG's second ouster of a group chief executive in less than two years could soon be followed by top-level change within the investment banking unit, the New York Post reports Friday. Unnamed sources told the Post that "a mutiny is brewing" within the investment bank, aimed at its head, Jerker Johansson. For its part, UBS has denied rumors that Johansson is leaving, the... Read more

Here's concrete evidence that even top-tier producers are looking over their shoulders. A recent resume workshop, free and open to the public, drew at least one current director-level employee of a bulge-bracket institution. Although her long-time employer is engulfed in turmoil (is there a large financial institution that isn't?), her desk is not slated for downsizing. In fact, she's in a business segment that most full-service investment banks are emphasizing because... Read more

With U.S. government debt skyrocketing and Treasury securities all but immune to the credit risk plague, might institutions hire more traders and analysts with Treasury market experience? For the past decade and a half, the relatively staid Treasury market was overshadowed by a series of newer instruments. Innovations like credit derivatives carried more pizzazz for trading and hedging, and generated far more profits for dealers. As a result, knowledge of the... Read more

As U.S.-based employees of Deutsche Bank await word on their bonus amounts, we're hearing the senior levels will bear the brunt of the damage, with the bonus pool divvied up like so: - Senior roles, management: Average bonus 85 below last year's level. - Vice presidents: Average bonus 50 percent of last year's. - Associates, analysts, and back office staff: Average bonus reduced by an amount less than 50 percent compared with last... Read more

It was only a matter of time before the recruiting industry moved to seize opportunities presented by TARP and related government programs to boost the financial system and the economy. Mergis Group, a nationwide recruiting firm with a niche in finance and accounting, says it's launched a "TARP and Government Bailout Talent Delivery Team" to help companies fill slots associated with the U.S. government's Troubled Assets Relief Program and government stimulus... Read more

Wall Street is on its back, but scientists would be wise to take a contrarian approach and investigate careers in finance, says the American Association for the Advancement of Science. In a three-part feature on financial careers in its official publication, Science, the association likens preparing to enter the industry to the old investing maxim, "buy low, sell high." It also predicts demand for quantitative expertise and rigorous analysis will grow... Read more

The boomtown atmosphere and exorbitant compensation of past years are becoming faint memories for many in the hedge fund industry. "All bets are off right now around comp for hedge fund managers," says Jane Abitanta, president of New York City based Perceval Associates, a leading hedge fund consulting firm. "As many funds are experiencing unprecedented redemption pressure, there is a great deal of uncertainty in the industry." The average hedge fund was... Read more

The hiring outlook at campuses across the U.S. has plunged since August, according to a widely cited survey of employers. Although 146 companies polled this month by the National Association of Colleges and Employers said they plan to hire slightly more graduates (1.3 percent ) in 2009 than they hired this year, the same group had projected a 6.1 percent rise when surveyed just two months earlier, according to The Wall... Read more

As Executive Vice President and a senior member of PIMCO's investment strategy and portfolio management group, Mark Kiesel is responsible for managing the firm's corporate bond portfolio. He also heads the investment-grade corporate desk. Previously, he served as PIMCO's head of equity derivatives and as a senior credit analyst. Although we interviewed him before the market's current storm, he offers solid observations about the financial industry and managing your career. Could... Read more