Park Avenue is an epic stretch of road. The businesses and residents that call it home tend to have one thing in common: prestige – a nice mix of money and power. Or at least that perception.
Prestige used to matter a lot in banking – and it still does, to a certain degree – but not as much as it used to. The most recent example is news that JPMorgan is considering dumping its Park Avenue headquarters for some more modest digs.
The New York Post is reporting that JPMorgan is in talks with developers at the World Trade Center and on the Far West Side about potentially relocating from its longtime home at 270 Park Ave. The talks are only said to be exploratory – a “kicking of the tires,” so to speak – but sources told the Post that Chief Executive Jamie Dimon is undertaking a comprehensive review of all of the bank’s real estate holdings.
Potential suitors include buildings in Hudson Yards and in Manhattan West, as well as one of the WTC towers. Money is said to be a main motivation, along with the benefits of moving into a newer, more technologically savvy building. Likely, JPMorgan wouldn’t make any moves for at least the next few years. Construction hasn’t even begun at some of the locations JPMorgan is said to be considering.
What is more certain, however, is that the bank is planning to move more back office employees out of town – and out of state. An unknown number of back office employees will be pushed out to New Jersey and even Delaware as the bank seeks to cut costs, according to the report.
The news comes on the heels of a February report that JPMorgan is planning to move front and back office employees across the East River to downtown Brooklyn’s MetroTech Center. Goldman Sachs has been doing something similar for years, building up its cheaper Salt Lake City office while it trims more expensive Manhattan staffers.
It’s all about location, location, location for banks these days. The cheaper the better it seems.
Who’s Hiring (eFinancialCareers)
In the latest hiring roundup, Pimco and Evercore’s growth plans taking shape, KKR embraces a new challenge and compliance hiring peaks, again.
Where the Money At (eFinancialCareers)
Say what you want about big banks, they still pay junior workers better than most every other industry. Here are the nine best paying entry-level jobs in finance today.
The City Feeling Generous (Bloomberg)
The average salary for new banking hires in London increased by a whopping 20% in July. The spike can be attributed to the poaching war with the buy side as well as increased competition for the limited number of experienced compliance and risk pros. Morgan Stanley just increased salaries for its junior bankers by 25% globally.
Former DB Head Sued (Bloomberg)
The former head of Deutsche Bank’s Chinese operations is being sued by the bank for more than $6 million for a money transfer that took place in 2001. Not many details here, but the bank is asking for $2.3 million in interest.
Despite all the bellyaching on Wall Street, banks recorded near record profit levels during the second quarter. The industry just posted the best quarter in 23 years –$40.24 billion in net income.
Glass Half Full Or Empty? (Business Insider)
Private equity firms now account for a whopping 32% of U.S. investment banking fees. But what happens when interest rates rise and PE and IPO activity slow?
Life Lessons (Business Insider)
Jefferies CEO Richard Handler sent a memo to all staffers to help them keep their eye on the prize during the slower summer months. It’s clichéd but somewhat novel.
Buzz Around the Office
The New York Post recently put together a rather random list of the sexiest subway stops in the city. Gawker countered with a much more accurate list of the ‘least sexiest’ subway stops. The Citi Field stop was a lock.
Quote of the Day: “I think the key indicator for wealth is not good grades, work ethic, or IQ. I believe it’s relationships. Ask yourself two questions: How many people do I know, and how much ransom money could I get for each one?” – Jarod Kintz
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