Citigroup is raising the salaries for its junior investment bankers, the latest Wall Street firm to try to improve terms for younger staff after a group of Goldman Sachs bankers complained publicly about the industry’s arduous working conditions.
Citi said in a memo to staff on Friday that it would increase base salaries for its programme vice-presidents, associates and analysts in the banking capital markets and advisory unit from July 1.
“BCMA program vice presidents, associates and analysts are a highly valued resource, contributing greatly to the ongoing success and strength of BCMA,” BCMA co-heads Tyler Dickson and Manolo Falcó wrote in the memo, which was reviewed by the Financial Times. “Especially in this current environment, it is important we recognise your talent and efforts to drive our businesses’ success and serve our clients.”
Citi’s BCMA division has roughly 6,000 employees globally.
The salary increases range from $15,000 to $25,000 and will bump up first-year analysts’ salaries in the US to $100,000 a year, according to a person familiar with the matter. This does not account for bonuses.
Across large investment banks, including Citi, the average first-year analyst salary is $91,000, according to Wall Street Oasis, which tracks the finance industry.
Rival investment banks JPMorgan Chase and Barclays have also recently lifted salaries for first-year analysts, to $100,000 from $85,000, according to people briefed on the matter.
Investment banking has long been known for its demanding hours and intense workplace culture, and the demands of the job have only grown during the pandemic.
Earlier this year, a group of first-year investment banking analysts at Goldman Sachs spoke out against the stresses of the job. Based on a survey of 13 analysts, the average work week was 95 hours, with five hours of sleep a night, the slide deck showed.
Some banks have taken steps to provide extra perks to compensate younger bankers for the added strain this year.
Earlier this year, Jefferies offered younger staff benefits including a Peloton bike and Apple products, while Credit Suisse gave bankers a $20,000 bonus, according to reports by Bloomberg and CNBC.
Citigroup has so far adopted a more flexible approach in bringing its bankers back to work in the office compared with the likes of Goldman Sachs and Morgan Stanley.
The bank said most of its bankers would return to work under a “hybrid” model, with at least three days a week in the office and up to two at home.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
