The chief executive of Barclays PLC, Robert Diamond, resigned Tuesday amid intense political and investor pressure from the British bank's involvement in rigging an important interest-rate benchmark—and another senior executive appeared close to following him out the door.

The scandal is tearing through Barclays's top ranks. Two people close to the bank said Tuesday that Jerry del Missier, the chief operating officer, is likely to step down from his role. Monday, the bank said Chairman Marcus Agius would resign.

Agius will remain chairman while Barclays searches for his replacement—and for a new chief executive, the bank said. Diamond will leave the bank immediately.

The departures effectively leave one of Europe's largest banks without leadership. That could set the stage for the elevation of Antony Jenkins, Barclays's chief executive of retail and business banking, to CEO, according to two people close to the bank. The bank is also considering external candidates.

Pressure on Diamond increased after the bank agreed last week to pay $453 million to settle a U.K. and U.S. probe that showed traders had blatantly sought to manipulate the London interbank offered rate, or Libor, to disguise the high cost of the bank's own funding and to pad the profits of certain traders. A person close to Barclays management said Diamond made the decision to leave late Monday night, feeling "it was the right thing for the bank."

The shake-up at Barclays could be mirrored elsewhere in coming months. Barclays was the first to settle in a continuing investigation of a handful of global banks by U.S., U.K. and Asian authorities. Other banks that have disclosed they are being investigated include Citigroup Inc., Deutsche Bank AG, HSBC Holdings PLC, J.P. Morgan Chase & Co. and Royal Bank of Scotland Group PLC.

Diamond's departure comes one day before the CEO will face tough questions from the U.K.'s Treasury Select Committee about the rate-fixing efforts at Barclays.

Key will be whether Diamond or his top managers expressly ordered traders to submit lower rates to make the bank's funding position look stronger during the financial crisis. Diamond had a conversation with top Bank of England official Paul Tucker about Libor rates in 2008, according to the report by regulators and people familiar with the matter.

The 60-year-old chief executive has faced a tumultuous 17 months as the head of the bank. During his stint, Diamond attempted to reshape Barclays into an investment banking powerhouse.

But he came under pressure from investors after the plan fell short amid the economic crisis. He also sparked the ire of politicians and regulators with his brazen style that saw him defend banker pay and fend off a tax and insurance misselling scandal. The latest controversy proved to be the final straw, analysts say.

"Ultimately they've reached the right decision. Diamond was a key drag to sentiment," said Gary Greenwood at Shore Capital.

Others expressed dismay at Diamond's departure.

Barclays "has not been well served or rewarded for its co-operation with the regulators," said Ian Gordon, an analyst at Investec Securities in London.

del Missier, the chief operating officer, took that post just a few weeks ago following several years as co-head of Barclays's investment bank. He earned a reputation for being skilled in complex trading strategies as well as in cultivating clients. A Canadian, del Missier has been at Barclays since 1997, and his elevation to the chief operating officer role was an effort to bolster the bank's global operations during a period of regulatory upheaval.

It isn't clear, given the turmoil at the top of the bank, when—or precisely how— del Missier's fate will be resolved.

The U.K. government announced Monday a series of inquiries into ethical standards in the banking industry and as the U.K. Serious Fraud Office said it was considering criminal prosecutions against those who attempted to rig the rates.

Barclays declined to comment on when a successor to Diamond would be named. On Monday the bank was reviewing succession plans for the CEO, according to a person familiar with the matter. Under the terms of his employment agreement, Diamond is entitled to six months' salary after a voluntary resignation. He earned pounds 1.35 million ($2.12 million) in salary last year. He's not automatically entitled to a bonus for this year, but he could still receive payouts under long-term plans. The bank says it is still negotiating the terms of Diamond's departure.

A spokesman said that Diamond's past bonuses were unlikely to be clawed back, because the attempts at rate manipulations happened more than three years ago and the term for clawbacks on those years' bonuses has expired.

Diamond's departure marks a victory for the U.K's political establishment, which has long complained about the bank's management culture. On Tuesday U.K Chancellor George Osborne hailed the move.

"I think it's the right decision for Barclays. I think it's the right decision for the country because we need Barclays bank to focus on lending to our economy and not distracted by this argument about who should be in charge," Osborne said on BBC radio. "I hope it's a first step to a new culture of responsibility in British banking."

This story first appeared on WSJ.com.

The scandal involving efforts to manipulate a key interest rate continued to tear through the top ranks of Barclays PLC, as its chief executive and chief operating officer resigned a day after its chairman said he would step down.

CEO Robert Diamond resigned Tuesday amid intense political and investor pressure over the British bank's involvement in rigging the benchmark, used to set interest rates on an estimated $800 trillion of borrowings and derivatives. Jerry del Missier, who was named chief operating officer last month, also stepped down.

The bank's chairman Marcus Agius announced Monday that he would resign, but the bank said he will remain while Barclays searches for his replacement—and for a new chief executive. Diamond will leave the bank immediately.

The departures effectively leave one of Europe's largest banks without leadership. That could set the stage for the elevation of Antony Jenkins, Barclays's chief executive of retail and business banking, to CEO, according to two people close to the bank. The bank is also considering external candidates.

Adding another wrinkle to the unfolding scandal, Barclays on Tuesday published a raft of documents in advance of a Parliamentary hearing on the scandal scheduled for Wednesday. Notes takes by Diamond of a call in 2008 between himself and Paul Tucker, a Bank of England financial stability official, suggest that the central bank, under pressure from the U.K. government, may have set off the chain of events that led the bank to lower its submissions for calculating the key rate.

Pressure on Diamond to step down increased after the bank agreed last week to pay $453 million to settle a U.K. and U.S. probe that showed traders had blatantly sought to manipulate the London interbank offered rate, or Libor, to disguise the high cost of the bank's own funding and to pad the profits of certain traders. A person close to Barclays management said Diamond made the decision to leave late Monday night, feeling "it was the right thing for the bank."

The shake-up at Barclays could be mirrored elsewhere in coming months. Barclays was the first to settle in a continuing investigation of a handful of global banks by U.S., U.K. and Asian authorities. Other banks that have disclosed they are being investigated include Citigroup Inc., Deutsche Bank AG, HSBC Holdings PLC, J.P. Morgan Chase & Co. and Royal Bank of Scotland Group PLC.

No individuals have been accused of wrongdoing.

Diamond's departure comes one day before the CEO will face tough questions from the U.K.'s Treasury Select Committee about the rate-fixing efforts.

Key will be whether Diamond or his top managers expressly ordered Barclays traders to submit lower rates to make the bank's funding position look stronger during the financial crisis.

According to the documents released by Barclays on Tuesday, Tucker told Diamond that he had "received calls from a number of senior figures within Whitehall to question why Barclays was always toward the top end of the Libor pricing." After Diamond explained the bank's pricing, he says Tucker reiterated that the calls he was receiving from the government were "senior" and added that "while [ Tucker] was certain that we did not need advice, that it did not always need to be the case that we appeared as high as we have recently."

According to the Barclays documents, Diamond didn't believe he received an instruction from Tucker. However del Missier, then president of Barclays's investment bank, concluded that an instruction had been passed down from the Bank of England not to keep Barclays's rate as high.

Tucker wasn't fingered in any way by the various authorities who investigated Libor rigging. A U.K. government spokesman didn't have an immediate response. The current Conservative-led government took power in 2010; in 2008, the now-opposition Labour Party, was in power.

Diamond, a 60-year-old American, has faced a tumultuous 17 months as the head of the bank. During his stint, Diamond, who previously ran the bank's Barclays Capital unit, attempted to reshape Barclays into an investment-banking powerhouse.

But he came under pressure from investors after the plan fell short amid the economic crisis. He also sparked the ire of politicians and regulators with his brazen style that saw him defend banker pay and fend off a tax and insurance misselling scandal. The latest controversy proved to be the final straw, analysts say.

"Ultimately they've reached the right decision. Diamond was a key drag to sentiment," said Gary Greenwood, an analyst at Shore Capital.

Others expressed dismay at Diamond's departure.

Barclays "has not been well served or rewarded for its cooperation with the regulators," said Ian Gordon, an analyst at Investec Securities in London.

Barclays shares, which plunged as much as 16% after the settlement was announced last week, fell 1.35 pence, or 0.8%, Tuesday to 167.05 pence.

del Missier, the former chief operating officer, took that post just a few weeks ago following several years as co-head of Barclays's investment bank. He earned a reputation for being skilled in complex trading strategies as well as in cultivating clients. A Canadian, del Missier has been at Barclays since 1997, and his elevation to the chief operating officer role was an effort to bolster the bank's global operations during a period of regulatory upheaval.

In a statement Tuesday, Agius said del Missier had "played a pivotal role in many of Barclays's stand-out successes during the last 15 years, including his extraordinary contributions as part of the leadership team that built the investment bank."

The U.K. government announced Monday a series of inquiries into ethical standards in the banking industry and as the U.K. Serious Fraud Office said it was considering criminal prosecutions against those who attempted to rig the rates.

Barclays declined to comment on when a successor to Diamond would be named. Under the terms of his employment agreement, Diamond is entitled to six months' salary after a voluntary resignation. He earned £1.35 million ($2.12 million) in salary last year. He isn't automatically entitled to a bonus for this year, but he could still receive payouts under long-term plans. The bank says it is still negotiating the terms of Diamond's departure.

A spokesman said that Diamond's past bonuses were unlikely to be clawed back, because the attempts at rate manipulations happened more than three years ago and the term for clawbacks on those years' bonuses has expired.

Diamond's departure marks a victory for the U.K's political establishment, which has long complained about the bank's management culture. On Tuesday U.K Chancellor George Osborne hailed the move.

"I think it's the right decision for Barclays. I think it's the right decision for the country because we need Barclays bank to focus on lending to our economy and not distracted by this argument about who should be in charge," Osborne said on BBC radio. "I hope it's a first step to a new culture of responsibility in British banking."

This story first appeared on WSJ.com.

It looks like deja vu all over again.

The monthly Employment Situation report released today by the Bureau of Labor Statistics showed little growth over May, the latest in a string of disappointing monthly reports from the government agency. The addition of 80,000 jobs to the U.S. economy in June and the stagnant month-over-month unemployment rate of 8.2% illustrates the continuation of a sluggish recovery following what looked like explosive growth in the first quarter.

"It looks like 2011," said Betsey Stevenson, assistant professor of business and public policy at the University of Pennsylvania's Wharton School of Business. "Despite having had some promise earlier in the year that the recovery is picking up momentum, it looks like we are slugging along."

Job seekers should take heart in the relatively strong growth in private sector jobs, in contrast to that of state and local governments, which have been laying off employees as tax revenues fall. The BLS report for June missed a forecasted gain of 100,000 jobs and contrasted with brighter numbers Thursday from Automatic Data Processing, Inc., which indicated the addition of 176,000 private-sector jobs.

“

Job seekers should take heart in the growth of private sector employment

”

"If you look at the last three months, the private sector does look stronger," Stevenson said. Private businesses added 85,000 jobs in April, 105,000 in May and 84,000 in June, she noted. Those numbers were offset by losses in government jobs. "The private sector is taking many steps forward, while the government is setting them back."

Slow Pace of Growth

The economy has been adding jobs for 28 straight months, Stevenson said, albeit at a very slow pace. "It is frustrating for everybody," she said. "It does add up to millions and millions of jobs added, it's just happening at a painfully slow pace."

The clear message for job seekers: Government isn't the place to look for work. Many other industries are hiring, however. Skilled workers are particularly in demand. For people over 25 years old with a college degree, the unemployment rate is just 4.1%, said John Landers, a regional vice president with staffing firm Robert Half International.

"It's a tale of two different job markets," Landers said. "The skilled, specialized market, and the more general market," which includes areas like manufacturing and construction.

"It's still a very competitive market for those who are looking for work," said Landers.

Sentiment among job seekers indicates a sense of stability. According to Glassdoor.com's quarterly Employment Confidence Survey, which surveys over 2,000 U.S. adults about job security, salary expectations, company outlook and rehire probability, only 10% of workers believe their company's outlook will worsen throughout the next six months, while 45% believe business will improve, and another 45% believe it will stay the same.

More Optimistic

For those out of work, optimism continues to climb. Forty-two percent of the unemployed surveyed by Glassdoor believe they can find a job in the next six months, six percentage points more than during the first quarter of this year and the highest measure since the first quarter of 2009. Only 22% of unemployed people aged 18 to 34 believe that it's "unlikely" they'll find work in the next six months. Among out-of-work people aged 55 and older, 41% believe it's unlikely they will be able to find a job matching their experience and compensation levels before the end of the year, down from 47% in the first quarter.

"The optimism for the employed has stayed stable," said Rusty Rueff, the career and workplace expert with Glassdoor. "But the better news, that could actually be a good sign going forward, is that the two groups that feel the hardest hit--the unemployed and older workers--are most optimistic this quarter."

The mood of workers isn't driven by broad economic reports from the BLS, but by the absence of layoff announcements and tales they hear from friends. "Stability can lead to confidence and what you're seeing is the beginning of stability," said Rueff. "The ups and downs aren't as wild as they were, and your heart rate doesn't go up and down as much on the kiddie roller coaster."

Write to Kelly Eggers at Kelly.Eggers@dowjones.com

The European Commission's proposed banking union, which is intended to stabilize the banking sector in the eurozone, may have some unintended consequences, according to an analysis from Reuters.

Under the proposal, the European Central Bank's 23-person Governing Council will oversee approximately 30 of Europe's largest multinational banks like BNP Paribas, Deutsche Bank and Santander, while smaller banks may be supervised independently. Banks based in countries that aren't in the eurozone won't be involved.

While the plan appears effective on the surface, Marc Jones of Reuters reports that the six-month timetable is viewed by many as "ambitious." These types of plans can take years, some argue, while others say the framework is laid out well enough that a 2013 goal is reasonable.

Other skeptics say that the ECB would have to be handed "unambiguous power" by European governments for the system to be effective, and conflicts of interest involving the firsthand knowledge of banks' conditions could result in biased policy decisions.

Unanswered questions remain when considering the ECB's control over Europe's banks. How many banks it will oversee, if heavyweights will be included along with smaller institutions, and whether existing supervisory committees, like Germany's BaFin, will remain intact are factors still left to be decided. (Reuters)

Lasting Effects (DealBook)

The fraud investigation by British officials into interest-rate manipulation may result in criminal charges against traders at Barclays.

Coming Clean (NYT)

While Liborgate has already resulted in several executive ousters, its effects aren't over. Some say it will spark an overhaul in how banks report their financials to avoid any future fudging of the numbers.

Slow and Steady (FINS)

While Friday's jobs report wasn't upbeat, some experts say it's a matter of reading between the lines. Skilled workers are still in demand while private industry continues to hire.

Oh, Canada (Globe and Mail)

Things may not be going so well on the Street, but Canadian banks appear to be rolling in dough. Five of the 10 most profitable public companies in the country are financial institutions.

Finishing Touches (Financial News)

As it aims to complete its push into prime services, HSBC has been making key hires, such as Paul Busby, an 18-year veteran of Bankers Trust and Deutsche Bank, and Brian Hughes of Goldman Sachs.

Tough Going (Bloomberg)

It was a tough month for hedge funds using computer-assisted trading strategies. According to one report, quant funds lost 3.1% last month, essentially eliminating gains made so far this year.

Watch Your Back (At Work)

If you're scaling the ranks of business, you've probably made a few enemies. Here are a few signs that someone's unhappy with your upward mobility, so you can avoid becoming the next "CEO-for-a-day."

Holding Strong (Associated Press)

Bank failures in the U.S. are at their lowest levels since the beginning of the financial crisis in 2008.

Buzz Around the Office

Lifeguard Ousted for Lifeguarding (Huffington Post)

A South Florida lifeguard was fired after attempting to save a drowning man. Tomas Lopez was relieved of his duties after his employer, Orlando-based Jeff Ellis and Associates, discovered that Lopez left the strip of beach his company is paid to patrol in an effort to save the man.

List of the Day: First Things First

So you've been handed a pink slip. Here are the first things you should do.

1. Don't send disparaging emails to co-workers or clients about your former employer.

2. Make any and all doctor's appointments you've been putting off before your health insurance runs out.

3. If you're leaving on a bad note, try to negotiate how your company will describe your separation to potential employers in the future.

(Source: U.S. News & World Report)

Tip: Cantor Fitzgerald to Hire 1,000

Having hired 100 people so far this year, New York private firm Cantor Fitzgerald isn't slowing down. Because it won't be bound by international regulation like Basel III rules, Cantor can afford to expand in areas where other banks have to pull back, like sales and trading. The bank will also hire for its asset management arm. It's on track to hire a total of 200 this year.

Tools to get the job:

How to Get a Job at Cantor Fitzgerald

The Perfect Sales and Trading Resume

The Perfect Asset Management Resume

Tip: Bank of America to Hire 1,000 Veterans

Expanding its plans, Bank of America will double the number of military veteran hires to 1,000 this year. Opportunities are in IT, operations, military assistance, consumer banking and wealth management. Veterans shouldn't be shy: The bank already employs 6,000 vets and reservists. The bank likes veterans because they're not only good at following instructions, they're hard-working, disciplined and have a team mentality. Also wanted: financial advisers.

Tools to get the job:

How to Get a Job After You've Served in the Military

Military Hiring to Reach Epic Levels

The Perfect Financial Adviser Resume

Tip: Mortgage Hiring on the Rise

Historically low mortgage rates are resulting in increased demand for mortgage bankers, loan processors, closers and underwriters. Mortgage lenders in Arizona and Illinois are looking for qualified employees. As loan volume increases, so does hiring.

Tools to get the job:

The Perfect Mortgage Resume

So You Want to Be an Underwriter

So You Want to Be a Mortgage Loan Officer

After being scared off from hedge funds in 2008 when the financial world imploded and investors couldn't get their money back, wealthy individuals are again investing.

As a result, funds are hiring sales staff, Robert Olman, founder of New York-based search firm Alpha Search Advisory Partners, told Financial News. "Searches have gone from almost nothing to multiple demand and where someone is right for the role there can be multiple bidders for their services," he said.

Earlier this year, Olman told FINS that hedge funds also want to hire risk managers. They want chief risk officers and risk staffers with three to 10 years of experience working in financial services, in operations management or in risk.

Now that 15 banks are being investigated for Libor rigging, it's unlikely demand for risk managers will let up soon.

In Charge (Bloomberg)

Barclays needs a capable leader who does not resemble a certain valuable precious gem. So anyone with the last name of Sapphire, Amethyst or Emerald need not apply.

Keeping Their People (On Wall Street)

Merrill Lynch is trying to hold onto its advisers by revamping its training program. Happy advisers are sedentary advisers who won't jump ship.

Wall Street Slump (Reuters)

When Wall Street hurts, so do the recruiters. One large international recruitment firm is having a tough time due to slow business.

Diversify (Bloomberg)

Don't put all your retirement eggs in your employer's basket. When the firm's stock depreciates, so does the value of your portfolio.

The FN100 (Financial News)

Here are this year's most influential people in European capital markets. Perhaps unsurprisingly, regulators are at the top of the list.

Follow the German Lead (At Work)

Somehow Germany's got it all figured out. In addition to ample vacation time, companies let employees take several days to go enhance a skill or knowledge base, even when it includes learning Mandarin in China.

Buzz Around the Office

Zuckerberg Owes Fan a Beer (Yahoo Sports)

An inattentive San Diego Padres fan was forced to ice down with a beer last week after being drilled in the chest with a foul ball. His excuse? He was updating his Facebook status.

List of the Day: Be Honest

Here's how to tell someone something they don't want to hear.

1. Give it to them straight. Don't sugarcoat.

2. Make sure you're getting it right. It looks bad to recant.

3. Refer to anonymous sources to make your point.

(Source: MoneyWatch)

Stop me if you've heard this one before: A futures firm with a large Chicago office runs through customer money and as it's being liquidated, is forced to lay off its employees.

It's not MF Global, but a smaller futures merchant this time around. Cedar Falls, Iowa-based Peregrine Financial Group, which conducted business under the name PFGBest, is liquidating its operations after federal agencies sued it for allegedly falsifying bank statements and mishandling customer funds.

Like last November, when MF Global failed, employees are currently at risk of losing their jobs, a spokesperson told Dow Jones. Unlike at MF Global, there are only 200 of them across the U.S., as opposed to 1,300.

A spokesperson couldn't be reached for an updated comment on how quickly layoffs might occur.

It's been a tough year for Chicago's financial industry, and it's only going to get tougher for the impacted employees. As of May, hundreds of former MF Global employees hadn't yet found new employment, FINS reported. The situation probably won't be too different for the PFGBesters.

Out in the Cold (WSJ)

Here's what happens when your employees engage in some insider trading: You lose out on plum deals that could have vaulted you to the top of the league tables. Just ask Nomura.

Bonus Blues (WSJ)

Bob Diamond knows how the game is played, or has a very good financial crisis communications firm advising him. He's giving up $30 million in bonuses in the wake of the Libor rigging scandal.

More Layoffs (Bloomberg)

Sinking investment banking fees means less revenue, and less revenue means more need to cut costs. Bankers in Europe are preparing for a wave of pink slips.

Energy Expansion (Economic Times)

Citigroup is fueling is energy coverage with four new hires from Bank of America and Credit Suisse.

Behind in Asia (The Economist)

Women in Asia are very behind the West when it comes to nabbing spots in upper management ranks or on company boards. The problem stems from fewer women in the workplace to begin with.

Onward and Upward (MSNBC)

Get out of your seat right now. No, really. Sitting there is literally killing you.

Buzz Around the Office

Not a Bad Day's Work (MSN)

Former Duke Energy CEO Bill Johnson, who spent just one day on the job before being forced out by the company's board, is eligible to receive exit payments worth as much as $44.4 million for his 24 hours of service.

List of the Day: Oldies but Goodies

It never hurts to revisit some fundamentals for advancing your career.

1. Reach out to two or three people a week to build relationships.

2. Figure out your added value and tell people about it.

3. Consider the big picture and how you can contribute to it.

(Source: Glassdoor.com)

A former employee of Peregrine Financial Group, the Cedar Falls, Iowa-based commodities firm that moved to liquidate on Tuesday, filed a WARN (Worker Adjustment and Retraining Notification) class-action suit against the company after being laid off on Tuesday.

The suit, filed Tuesday evening in the U.S. Bankruptcy Court for the Northern District of Illinois, alleges that PFG failed to provide 60 days notice of layoffs as required under federal law. The suit comes after regulators said they were investigating the company for alleging misusing customer funds and falsifying bank statements. PFG's founder, Russell Wasendorf, Sr., was found Monday outside company headquarters in the midst of a suicide attempt, according to the Wall Street Journal. The company has filed to be liquidated under Chapter 7 of the U.S. bankruptcy laws.

According to the lawsuit, Ron Kotulak, a former back office operations clerk at the Chicago outpost of the company, is asking for 60 days wages and benefits, which can include salary, commissions, bonuses, accrued holiday pay, pension, healthcare and other benefits.

“

I'm out on the street and I didn't even get my last check

”

"I'm out on the street after coming in for three years and I didn't even get my last check," Kotulak, 48, said in a phone interview. Kotulak has a wife and two children, aged 18 and 20.

According to an email sent to PFG's 200 employees yesterday by Janice Meintzer, head of human resources, payroll has been frozen and the company has not been authorized to send out paychecks from the week of July 13. Employees will continue to receive dental, life and health insurance through July 31, according to a copy of the email reviewed by FINS.

A spokeswoman for PFG did not return requests for comment.

Kotulak said he was shocked to hear of the company's liquidation. Employees had recently celebrated the company's decision to reverse a planned 10% pay cut for July. A similar pay cut had been implemented for all employees in June.

Russ Wasendorf Jr., president and chief operating officer, last Friday sent employees an email saying that "based off the financials for May, and projected June P&L data, the Executive Committee of PFGBEST has decided that the second temporary salary cut will not be done." The pay cut was being rolled back because PFG would be able to "run at break even" due to "current cost cuts" and "projections for increases in income in particular from International business done through BEST Direct Australia," according to a copy of the email reviewed by FINS.

The salary cut enacted in June would also be rolled back, the email said.

To celebrate the pay cut rollback last Friday, Kotulak bought a new leash, harness and doggie bed for Apple, his terrier mix, as a well as a lamp, he said. As of Tuesday, he was out of a job.

Write to Julie Steinberg at julie.steinberg@dowjones.com

We're almost at the midway point of summer, and the news is bleak. Second quarter results come out starting Friday and no one's expecting great news in the hiring department.

Two areas, however, are seeing some action. The first is health care banking, which, as you might have guessed, is in demand in light of the U.S. Supreme Court decision to uphold the Obama administration's health care plan.

Firms including UBS, Perella Weinberg and Leerink Swann have made senior hires in recent weeks. Since the June 28 ruling, more than $20 billion of mergers and acquisitions have been announced in the health care sector, according to Financial News.

If stethoscopes and stents don't do it for you, consider Asia. Investment bank Jefferies said in a filing on Monday that a "significant portion of the additional increase" in headcount is due to its expansion in Asia. The firm had 3,809 employees as of May 31, up nearly 20% from the same point last year, Financial News highlighted.

Taking Action (FINS)

A former employee of Peregrine Financial Group has filed a WARN lawsuit against the company, arguing it didn't give him 60 days' notice he was about to be terminated.

Auf Wiedersehen! (Bloomberg)

A casualty of the job cuts being made by Morgan Stanley is Harald Gegenwart, the firm's head of German equity trading. The firm says it's letting go fewer than 100 employees.

Owning Up (WSJ)

Ina Drew, the former head of J.P. Morgan's Chief Investment Office, is one of several executives who will hand back a portion of their stock-based compensation.

Think Again (WSJ)

If "working from home" sounds synonymous to "Facebook stalking" and "online shopping," you might want to reconsider. Many companies are employing new software to track the browsing habits of remote workers to ensure they aren't slacking off when off-site.

Rocking Out (DealBook)

A pack of New York City financiers attended a battle of the bands fundraiser on Tuesday night in an effort to raise money for military veterans and their families.

I Scream, You Scream (WSJ)

Leon Black, come on down. The financier paid -- gulp -- nearly $120 million for Edvard Munch's "The Scream."

Buzz Around the Office

Un-Easy Pass (Yahoo Autos)

Struggling with motorists cruising through its toll booths without paying, the North Texas Toll Authority has released the names of its worst offenders. Topping the list is Amber Young of Dallas, who owes nearly $180,000 in unpaid tolls.

List of the Day: When to Quit

If you've experienced any of the below, you want to consider leaving your current gig.

1. If you dread Monday morning, and not for the usual reasons everyone dreads Monday morning.

2. Your company is going to go under.

3. You're underperforming and you don't think you're going to improve.

(Source: Glassdoor.com)

Leon Cooperman, 69, is, by all accounts, a successful hedge fund manager. After spending more than 24 years in the research and asset management departments at Goldman Sachs, Cooperman started his own fund, Omega Advisors, in 1991.

He's now worth $2 billion, according to a March 2012 report from Forbes. The firm invests primarily in U.S. stocks, targeting equities if Cooperman thinks the stock market is going up and holding cash and bonds if he thinks the market is likely to be weak.

So what makes a good analyst or portfolio manager? Cooperman listed 14 attributes he thinks are absolutely necessary. Whether you want to get into the asset management game or just like to dabble, if you don't have most of these characteristics, you might think about a different profession.

No. 1: The desire and commitment to be the best

"You're not punching a clock," Cooperman says. "I'm 69 and I walk in at ten to seven each morning. I don't want people to be hanging around. I want them to make their own way, be enthusiastic and show good work ethic."

No. 2: Strong work ethic

No. 3: Thorough and penetrating analysis/in-depth research with a strong analytical foundation

No. 4: Good communications skills [are] critical. Can easily write a several page summary of his or her investment views

"People need to be able to communicate effectively. They have to sell me on their ideas. When I read something, I write questions in the margin and discuss them. If you can't write, you're at a disadvantage."

No. 5: Have an intensity which leads one to be on top of positions and ahead of the crowd

No 6: A good nose for making money, e.g. know a good idea when you see one

No 7: Have conviction with respect to investment recommendations and confidence to add to a position if fundamentals are intact but stock is down.

"When a stock goes down and is not performing in a manner that's anticipated, you capitalize on the weakness. if you know what you're doing, buy more," he says. "Be able to defend your ideas."

No. 8: Be aware of not only absolute P&L but also return on capital.

"You don't want to create an environment where people hog capital. If one person comes up with the idea that results in $50 million but used $500 million to get it, it's better to have someone who gets the same $50 million but only uses $100 million. Use less capital to get what you want."

No. 9: Team player

Analysts at Omega need to be comfortable sharing information and helping one another, says Cooperman.

"For example, within Tyco, there is a health care company," he says. "The Tyco analyst needs to learn more about that company. I'd expect our health care analyst to be helpful to him even though he's not responsible for that company. I would expect them to provide information and input. Someone who puts the firm's interest into their own interests and thinks about the firm's widespread positions."

No. 10: In a typical year, an analyst should be able to produce at least three of four core investment ideas and 10 to 12 trading ideas

No. 11: Pride of ownership, sense of loyalty to the organization and commitment to clients

No. 12: Unbiased and willing to admit mistakes, skeptical, creative, curious, bold/edgy, able to take risk

No. 13: Can identify his or her comparative advantage

"What is that person's knowledge base? Are they knowledgable about structured credit? Where is their skill set the greatest? Where does their expertise lie? How can they capitalize on that expertise?"

Know what you're better at than anyone else and talk about it. If an analyst understands health care better than the competition, he or she should be vocal about investing ideas for the sector.

No. 14: Identify variant perception

"Where does your view differ from the consensus that could spark the reason you're getting the return you're looking for? If you have a view variant to the consensus with positive expectations, that's how you make money. You see things that someone else doesn't see. How is your view different than the consensus view? Where do you differ from the consensus? if you turn out to be right, that's where the reward is."

Write to Julie Steinberg at julie.steinberg@dowjones.com

What does pulling teeth have to do with building a multi-billion-dollar hedge fund?

Apparently not much. While a college student, hedge fund honcho Leon Cooperman thought he was going to be a dentist until he enrolled in dental school at the University of Pennsylvania. Eight days later, he quit, giving up $1,500 in tuition to re-enroll at Hunter College, part of the City University of New York.

There he excelled in economics and finance and the rest, as they say, is history. Now 69, Cooperman runs Omega Advisors and is said by Forbes to be worth $2 billion. He got to hedge funds via a 24-year stint at Goldman Sachs, where he ran research and started the firm's asset management business.

Along the way, he developed some deeply held political beliefs. He sent President Obama a letter last November arguing that that the president's rhetoric was "polarizing" and his characterization of the wealthy tantamount to class warfare. Obama hasn't written back, Cooperman says.

We caught up with Cooperman to chat about striking out on his own, his thoughts on the election and financial regulation reform and why he plans to work into his 70s.

JS: Your father was a plumber. Growing up, could you have envisioned becoming a hedge fund manager?

LC: I had no idea whatsoever. I was the first generation born American in my family. I'm the first generation to have gone to college. I had no grand plan, really. I went to public school and high school in South Bronx and went to City University of New York, where I met my wife of 47 years. We met in our sophomore year French class.

JS: You originally planned to be a dentist. What happened?

LC: When I was in college, they had a program where if you completed your major and minor in three years, you could count your first year of dental or medical school as your fourth year in college. So I worked very hard in summer of 1963 so I could start dental school in the fall.

I finished off my major and enrolled in University of Pennsylvania's dental school in August of 1963. After eight days, I was wondering whether I was pushing myself in a direction that wasn't really my true calling. I went to the dean of the dental school to explain I wanted to finish my fourth year of college and make a decision a year later.

He put me on a guilt trip and explained I deprived the 101st applicant of a dental school application. I also lost $1,500 in tuition. The only person who understood was the dean of Hunter College [a constituent school of City University of New York] in the Bronx. I told him I wanted to re-matriculate.

I had nothing but electives available so I took 10 courses in economics my senior year and I got 10 As. So even though I majored in chemistry and minored in math and physics, I graduated with honors in economics. That crystallized my interest in this field.

I worked for Xerox for a year or so, then went to Columbia Business School, which opened the door to Goldman Sachs.

JS: How did you get the job at Goldman?

LC: I was a poor kid and got kind of lucky. I had 16 job offers when I graduated from Columbia. I was an attractive package because I had straight As in finance. I also had a six-month old child.

I had a job offer from Bob Danforth [at Goldman] for $13,000. Because I had been besieged with job offers, several that would pay me more than Goldman, I was dragging my feet. Bob called me up and asked "Is there anything we can say to get you here?" I said, "Bob, if I work hard can I make $25,000 a year in five years? He said "if you work hard, keep your nose clean, I think you can do it."

New York-based investment bank Moelis & Company is expanding into India, the company said yesterday. Manisha Girotra, India country head at UBS, joins to run the office.

"As we expand our global footprint and information network, we see India, with its scale and importance globally, as a priority for our continued growth," Moelis Chief Executive Ken Moelis said in a statement.

The India office will offer services in mergers and acquisitions, recapitalizations and restructurings, capital markets and risk advisory.

The team in India should grow to double digits over the next year, the Business Standard reported.

"Our plan in India is to grow our team in line with client demand and deal volume," a Moelis spokeswoman told FINS.

Cooperman's Career (FINS)

Hedge fund billionaire Leon Cooperman worked for almost 25 years at Goldman before striking out on his own. Now he's worth $2 billion.

Learning from the Master (FINS)

Cooperman shares his top tips for becoming the best analyst or portfolio manager. In other words, here's what he's looking for come hiring time.

Bonus Holdup (Bloomberg)

Royal Bank of Scotland is trying to prevent a 1 million pound bonus from going to its former head of corporate risk solutions.

Earnings Fears (William Wright)

J.P. Morgan kicks off second quarter earnings today, and analysts aren't hopeful about revenue results, which may translate into more layoffs.

More Money (On Wall Street)

If you're a financial adviser looking to rake it in, wirehouses surprisingly may not be your best bet. Edward Jones will offer you the most cash for your efforts.

The Biggest Loser (Business Insider)

Want to lose weight? Sure you do. Now you can team up with your buddies at work to try the latest craze among bankers, a juice cleanse.

Buzz Around the Office

Sorry for Your Loss, Here's Your Latte (USA Today)

A South Carolina funeral home will expand its amenities next month by opening a Starbucks "Coffee Corner" within the facility. Robinson Funeral will serve up lattes to both mourners and the general public.

List of the Day: Phrases to Avoid

No one, least of all your boss, ever wants to hear you utter these words.

1. "That's impossible."

2. "There's nothing I can do."

3. "But we've always done it that way."

(Source: MoneyWatch)

J.P. Morgan Chase & Co. threw the book at the traders behind the "London Whale" blunder, seizing millions of dollars of compensation in what it called the "maximum permitted clawback" under its policies.

The New York company said Friday the clawbacks cover three London-based managers who had "direct responsibility" over the synthetic-credit portfolio at the center of the trading losses the company first disclosed in May. People familiar with the situation said the traders are Achilles Macris, Javier Martin-Artajo and Bruno Iksil, the trader nicknamed the "London Whale" for his outsize trading positions at the bank's Chief Investment Office, or CIO.

The company didn't disclose specific numbers but said the amount clawed back from each person represents about two years of total annual compensation. The recovered sums include restricted stock and canceled stock options grants.

Ina Drew, a top lieutenant of Chief Executive James Dimon who ran the CIO until the losses were disclosed this spring, volunteered to return pay in line with the maximum clawback, Dimon said on a conference call with analysts and investors.

Ms. Drew declined to comment. Attorneys for Messrs. Macris and Martin-Artajo didn't immediately respond to requests for comment. Iksil didn't immediately respond to a request for comment.

J.P. Morgan's plan is the most prominent instance of a major U.S. bank seeking to recover pay from a high-ranking executive since the financial crisis. Bank policies permit the company to recover compensation paid to employees who engage in behavior deemed to hurt a company and its shareholders, in a bid to reduce incentives for employees to take unnecessary risks.

The company said Friday the trading losses have hit $5.8 billion and could increase by as much as $1.7 billion in what it deemed a worst-case scenario. J.P. Morgan also said Friday it was restating its first-quarter earnings to reflect possible mismarking of trading positions in the CIO. The bank said the restatement of first-quarter results reflects "recently discovered information that raises questions about the integrity of the trader marks and suggests that certain individuals may have been seeking to avoid showing the full amount of the losses in the portfolio during the first quarter."

The restatement and the clawbacks are the latest fallout from an episode that has bruised the bank since The Wall Street Journal reported in April that traders in the CIO were making outsize wagers on certain corporate credit indexes. The bank has lost more than $20 billion of market value since the May disclosures, though J.P. Morgan shares rose Friday.

Messrs. Macris, Martin-Artajo and Iksil have been "separated" from the firm, the company said in a release, with no severance pay. The Wall Street Journal reported their departures from the company Friday.

Dimon said Ms. Drew offered to give up "a significant amount of past compensation" that he said is equivalent to the maximum clawback allowable. Ms. Drew earned $15.5 million in 2011 compensation, including $7.5 million in stock awards, and was due as much as $14.7 million in termination payments.

Rules aimed at recovering pay go back a decade. The Sarbanes-Oxley Act, passed in 2002 after Enron Corp.'s failure, empowered companies to claw back pay from executives in the event of a financial restatement or certain misconduct, and the Dodd-Frank financial overhaul of 2010 expanded the types of behavior that can be subject to recovery. J.P. Morgan in 2010 expanded its policy to cover behavior that contributed to outsize losses or reputational harm.

"For members of the Operating Committee and senior employees with primary responsibility for risk positions and risk management, the Firm may cancel or require repayment of shares if employees failed to properly identify, raise, or assess risks material to the Firm or its business activities," the company said in its proxy statement this spring.

Until now, there have been few known financial-sector examples. The most notable recent case was a February decision by UBS AG, struggling to deal with a rogue-trading scandal, to rescind some share-based payouts for investment-bank employees due to receive bonuses of more than $2 million apiece.

Many Wall Street firms have expanded their clawback policies in recent years, but it isn't clear how often they have been used.

At Credit Suisse Group AG, a spokeswoman said the firm has had clawbacks for traders for more than a decade, and the policy has lately been expanded. Some of the firm's proprietary traders had their pay clawed back after losses suffered in 2008 during the financial crisis, according to a person familiar with the matter.

Goldman Sachs Group Inc. also has used clawbacks in some circumstances, according to people close to the bank, but hasn't disclosed specifics.

This story first appeared on WSJ.com.

Write to Dan Fitzpatrick at dan.fitzpatrick@wsj.com

Despite the weak economy and a huge trading blow up in London, Jamie Dimon is still growing parts of his empire.

On a conference call with analysts Friday to discuss J.P. Morgan's second quarter earnings, Dimon said the firm is "gaining market share in some of our businesses" and is growing its small business banking and commercial banking lines.

The bank added 22 branches across the country last quarter, bringing the total number to 5,563. While expansion has slowed, the retail network is still an area of investment, officials have said.

Investment banking profit was down 7% from a year earlier to $1.91 billion, but was up 14% from the first quarter. The bank added 846 people in that unit, despite general fears about investment banking personnel cuts across the industry.

The firm's total head count increased 1% from the first quarter to 262,882. Most of the growth took place in the corporate and private equity businesses, with an increase of 683 employees. Commercial banking added 250 people, while asset management added nearly 200. Departures took place in card services and treasury and security services.

The firm also said it has hired more than 4,000 military veterans since the beginning of 2011.

Catching Peregrine (WSJ)

Russ Wasendorf Sr. was arrested Friday for falsifying bank statements and basically running a Ponzi scheme. More than 50 employees will be retained to help unwind the firm.

Gensler in Trouble (MarketWatch)

First MF Global, now PFGBest. Some Republican congressmen are calling for CFTC chief Gary Gensler's head on a platter.

Wells Fargo Hiring (Minyanville)

The large home lender is hiring bank tellers, mortgage officers and other bankers. You don't even need a financial background for some positions.

New Hire (Deal Journal)

Li Cui has joined Goldman Sachs as senior China economist to be based in Hong Kong. She joins from Royal Bank of Scotland.

Mortgage Mavens (Marketwire via MarketWatch)

California-based Impac Mortgage is getting into the reverse mortgage space and will hire sales professionals and operations staff for the initiative.

Face Time is the Right Time (At Work)

You can work from home on your iPhone all you want, but when it comes to getting promotions and raises, employers want to see you in a chair. At work. Doing work. In front of them.

Buzz Around the Office

A Dog Day Afternoon (NY Daily News)

One of the wedding season's most extravagant ceremonies took place last week, when a Coton de Tuléar tied the knot with a one-time stray poodle named Chilly Pasternak. The cost of the dog wedding? A cool $250,000.

List of the Day: Job Application Tips

Whatever you do, don't apply for every single job that comes up at your company if you're looking to move.

1. You'll seem desperate and look like you lack judgment.

2. You'll annoy recruiting managers who will simply pass you over.

3. Apply for no more than two or three jobs.

(Source: MoneyWatch)

Tip: Moelis India Open for Business

New York-based investment bank Moelis & Company is opening its first office in India. The country is a priority for the company and the office will grow to double digits over the next year. It will offer M&A, restructuring and risk advisory services. Manisha Girotra joins from UBS to run the venture.

Tools to get the job:

The Perfect Investment Banking Resume

What Not to Say in Job Interviews

Yes, Ladies, You Do Need to Play Golf

Tip: Where the Wild Opportunities Are

It's a glum time for banking, but there are job opportunities if you know where to look. Health care investment banking is hot, fueled by the recent Supreme Court decision to uphold the health care law. The deal pipeline is still frothy and banks are bringing on staff to address it. If health care doesn't do it for you, consider Asia, which is the linchpin of investment bank Jefferies' international strategy.

Tools to get the job:

How to Apply for a Finance Job in Asia

The Perfect M&A Resume

How to Get Off the Ladder and Onto the Lattice

Tip: Hedge Funds Back on the Map

Wealthy individuals are flocking to hedge funds after shying away from them following the financial crisis. Funds need to hire more bodies to help with the influx. They're bringing on both sales staff and risk staffers. The latter should have three to 10 years of experience working in financial services, in operations management or in risk.

Tools to get the job:

Leon Cooperman Looks Back on Life

How to Be a Great Hedge Fund Analyst or PM

The Perfect Hedge Fund Resume

The Australian investment banking community is getting a little bigger.

Goldman Sachs will open an office in Perth, Australia, on August 1, according to Deal Journal Australia. It will be run by Peter Watson, who joins Goldman after nine years with Australian bank Macquarie Capital.

"Perth is a critical business and financial center in Australia and is a key center for the natural resources sector and contributes to a significant amount of M&A and financing activity," according to an internal Goldman memo obtained by Deal Journal. "To date we have covered our Perth client base from the Australian east coast, but we believe a permanent Perth presence is critical to allow us to better serve our clients in this market."

Investment bankers, equity salespeople, researchers and private wealth managers will work in the Perth office.

Not to be outdone, Deutsche Bank will also set up shop in Perth "in the months to come." UBS and Macquarie already have offices based in Perth, The Australian reports.

Australia's resources and energy sectors are attracting banks. Metals, mining, oil and gas industries have comprised 75% of M&A targets this year, according to Thomson Reuters.

Preparing for Layoffs (Fortune)

Citigroup Chief Financial Officer John Gerspach said if things don't get better, layoffs will go down in the investment bank. Some, however, say cuts have already begun.

Stepping Up (Business Wire via Yahoo)

James Frawley is joining Macquarie as U.S. head of mergers and acquisitions. He joins from FBR & Co., where he was head of M&A and head of the New York investment banking office.

Smart Incentives (Bloomberg)

When Warren Buffett pays his two deputies, he bases some of their pay on the other's performance. That way, they're sure to collaborate. Good thinking, Buffett.

Man on the Ground (Financial News)

Goldman Sachs banker Luigi Rizzo is having a good quarter indeed. The financial institutions group banker is involved in some of Europe's hottest deals.

Getting In (Mergers & Inquisitions)

If you want to get into asset management, you'll have to be more proactive on campus than your aspiring i-banker peers. Many firms don't come to recruit.

In Memoriam (WSJ)

Barton Biggs, the former Morgan Stanley global market strategist, died Saturday at age 79. Briggs is also known for his book "Hedgehogging."

Buzz Around the Office

#BearForMayor (Twitter)

A 400-pound black bear who has made repeated, unwanted visits to the town of Glendale, Calif., has earned himself a nickname, political campaign and 24,000 Twitter followers.

List of the Day: Keeping a Cool Head

Great job – your boss loves you. But your colleagues don't because of it. Here's how to prevent it from going to your head.

1. Include your colleagues to make them feel wanted.

2. Don't get complacent.

3. Continue to reach for stretch assignments.

(Source: The Daily Muse)

Call it "Extreme Makeover: Banking Edition," and get a look at the latest contestant.

Goldman Sachs is changing both inside and out. First, the company is building a private bank that will lend to wealthy individuals and companies. The move is designed to generate revenue and fees at a time when its other businesses, like investment banking, are hurting. Goldman plans to grow the business further outside the U.S. in places like Asia.

"That's been a strategic focus of ours for awhile and continues to be," Chief Financial Officer David Viniar said on a call with analysts yesterday to discuss second quarter earnings.

The firm met its cost-cutting targets for this year and has lumped on an additional plan to save $500 million, said Viniar. It cut 100 jobs last quarter and put aside nearly 10% less compensation last quarter than it did a year earlier.

Despite the cuts, Goldman expects to have higher head count by the end of the year. Here's the catch: The level of the employees, on average, will skew more junior, less senior, Viniar said. Campus hiring will boost head count, he added.

So, to recap: Senior bankers have been leaving the bank in droves, and Goldman is gearing up to hire less expensive, more-bang-for-their-buck junior people.

It's a whole new 200 West.

Stepping Down (DealBook)

Whoa, whoa, whoa. This scandal is far more suited to a Jason Bourne film than a Senate hearing. The top compliance officer at HSBC is resigning because the bank served as a conduit for drug dealers and terrorists. We want the movie rights.

Expanding in China (Bloomberg)

Foreign banks have their eye on the promised land: China. HSBC and Citigroup are two of the 41 banks that want to grow staff by 56% by 2015.

Now and Then (Dealbreaker)

A quarter of Harvard Business School's class of 1986 own a boat. A QUARTER. Get thee to Harvard, stat.

More Women, More Money (The Times of India)

Firms like Deutsche Bank are paying headhunters more money to bring them qualified female candidates.

Musical Chairs (Harvard Business Review)

Top young managers in their late 20s and early 30s aren't staying at their jobs for very long. The top reason: Inadequate training.

What to Say (Business Insider)

Here are 16 Wall Street terms that theoretically may make you sound much more intriguing to the person you just bought a drink.

Buzz Around the Office

Catch Me if You Can (Yahoo)

A 59-year-old Utah man died last week, leaving behind a rather revealing obituary that included his admitting that he never actually earned his Ph.D., a diploma that launched his engineering career. In fact, he never graduated from college.

List of the Day: Getting Promoted

It will be easier if you keep these things in mind.

1. Don't lump your problems onto your boss's lap. You're there to make his or her life easier.

2. Be honest about mistakes and what you're doing to fix them.

3. Don't walk around with an air of entitlement.

(Source: The Daily Muse)

Good news for those who have been laid off in the financial sector: Banks are more willing to hire you these days, as opposed to yesteryear, when being laid off was a huge obstacle to finding a new gig.

This new generosity stems from banks' desire to do two things: Find really good talent which may not have been available before, and perhaps more importantly, find really good talent that's not too expensive. By scooping up those who already have been laid off, banks don't have to jockey to promise bonus guarantees to those ensconced at their competitors.

Financial News reports that a recent survey of 150 City headhunters in London found recruiters are more willing to hire those without jobs because the sheer volume of layoffs -- more than 135,000 last year -- means that whole teams of talent are now available, removing the stigma of being out of work.

The headhunters said there's demand for talent in debt capital markets, but not in equity capital markets or in mergers and acquisitions.

Chugging Along (Reuters)

Bank of America is continuing to cut billions in costs. Since it began the plan last summer, it's cut over 12,000 jobs. Only 18,000 to go!

Where Are They Now (Financial News)

Stephen Morse, the former compliance head at Barclays who was name-dropped in testimony this week about his possible role in the Libor rigging, is currently holed up at TD Bank in Canada.

Swiss Holes (Bloomberg)

Credit Suisse is putting aside more capital to please regulators and also embarking on another round of cost cuts. Those last two words usually tend to mean job losses, even if Chief Executive Brady Dougan won't say so.

Office Frenemies (Fortune)

It's time to get over your tiff with the woman in the cubicle diagonal to yours. It's a waste of time.

Russian Boom (Bloomberg)

VTB Capital, the Russian investment bank, has lured away Peter Stonor from Royal Bank of Scotland as head of infrastructure and transport. The Russian bank has been hiring hundreds this year as its Western counterparts retrench.

Losing Hope (Yahoo! Finance)

A new HBO movie takes a look at middle-class Americans who have lost their jobs in the great recession.

Buzz Around the Office

Pit-burrrrr (Ad Age)

Rapper Pitbull confirmed that he is set to visit the most remote Wal-Mart in the U.S. – on Kodiak Island off the coast of Alaska – after a Facebook promotion was essentially hijacked by a creative group of pranksters.

List of the Day: The Right Handshake

Everyone knows a good handshake is essential in the workplace. Here are a few kinds to avoid.

1. The dead fish. Don't just lie there, do something.

2. The knuckle cruncher. Don't grip too hard.

3. The two-handed. One hand will suffice.

(Source: The Daily Muse)

Accounting has remained one of finance's few safe havens for employment with Big Four firms such as Deloitte and KPMG hiring thousands every year.

But getting a job at an accounting firm is only the start. As many as 20% of those who go into accounting get out each year; that's one reason why the firms make so many new hires. You need a concerted plan to get to the top, whether you're trying to make partner at a public accounting firm or aiming to become a chief financial officer at client company. Expect your climb to take at least 10 to 15 years.

Here's how to turn that first accounting job into a long, high-powered career.

The Certifications

Moving up the ladder requires spotless credentials and that means becoming a Certified Public Accountant. Typically, if you join a public accounting firm, you will work for two years and then take the CPA exam, says Brett Good, senior district president with Menlo Park, Calif.-based recruiting firm Robert Half. Without the CPA, you won't be able to segue into your next position.

"We will hire people without their CPA up until their fifth year of experience in the sector," says Nancy Altobello, Americas vice chair of people at Ernst & Young. "We will support them to get it, but generally the firm doesn't hire people without one after year five."

Accounting departments within companies also want to see CPAs. "The reality is having the CPA is a tie-breaker if a company is choosing between two candidates," according to Brendan Courtney, president of Mergis Group, a Ft. Lauderdale, Fla.-based recruiting firm. It's best to take the exam as soon as you can, once you have your company's sponsorship.

Also consider getting other certifications to impress potential employers. Those extra qualifications make your resume stand out and also increase the base salary you can command by as much as $22,000 a year, according to recruiters and the Institute of Management Accountants .

"The accounting field loves certifications," Courtney says. "Look into the Certified Fraud Examiner and Certified Cash Manager credentials."

Another certification worth considering is the Certified Management Accountant credential. The exam tests financial planning, budgeting and forecasting, as well as ethics, performance management and decision analysis, according to Jeff Thomson, president and CEO of the Institute of Management Accountants, a global trade association for management accountants.

"There's more demand for management accounting skills as you climb the career ladder," Thomson says.

Moving up at Public Accounting Firms

Make no mistake: The percentage of people who reach partner status at public accounting firms is small. At McGladrey LLP, a Minneapolis-headquartered firm, there are 640 partners out of 6,500 employees. Ernst & Young has 8,600 out of 152,000 employees, while at Grant Thornton's U.S. arm, there are 500 partners out of more than 5,000 employees.

At PricewaterhouseCooper, it takes an average of 13 years to become a partner, says Paula Loop, U.S. and global talent leader for the firm. As a person progresses up the ladder, organizational, communication and managerial skills become more important.

"The technical competency is fundamental, that's really more of a baseline," she says. "Once you move up, you need to be able to organize a team and manage really large projects. You have to be opportunistic and be willing to jump on new opportunities. You should have agility and be able to work in different countries and work in different areas of expertise."

A typical career path at E&Y would include the following: start as a staff accountant. Take the CPA exam. After two years, move to senior accountant. After three years, move to manager. Another three years later, move to senior manager. From senior manager to partner it can take between three to six years.

According to Altobello of Ernst & Young, as a staff accountant, you're doing entry level work and working at the client site. By the second year, you're starting to supervise the newly-arrived staff accountants and you're doing field work.

As a senior, you're overseeing tasks and taking on more management activities. As a manager and senior manager, you're running the client engagement, meeting with the client, understanding their issues are and managing the team. Finally, as partner, you're responsible for the quality of the engagement and for all communication with the client.

Mark Gaines became a partner at Chicago-based CPA firm Altschuler, Melvoin and Glasser LP in 1990, after having worked there since 1978. The firm was ultimately acquired by McGladrey, where he works now.

"You need to aggressively plan your career," says Gaines, 56. "As you get further along in your career, networking is critical. You need to demonstrate your ability to bring in business."

In addition to business networking, Gaines suggests interacting with people through various charitable organizations. He himself is involved with the America-Israel Chamber of Commerce, a trade association that connects American and Israeli companies, the American Technion Society and the Jewish Federation of Metropolitan Chicago. Through those pursuits, he has met clients, met people who referred him to clients and also honed his leadership skills.

Bringing in clients is an important part of being a partner, says Katie Byrne, the partner in charge of New York-based accounting firm WeiserMazars' Pennsylvania office. "Not everyone can develop relationships and that's a really important aspect to bring in clients."

Special Talents

When you've just joined a public accounting firm, no matter how big or small, you should expect to travel to the client site, says Byrne, who once spent four months on an engagement in Perth, Australia and has also worked in Colorado, California, Texas and Illinois.

"I've seen the country and the world through my work," she says. Like in banking, your conduct on these trips will help cement your reputation within the firm as a respected and easy person to be with, qualities in demand at the senior level.

Also important is your presentation skills, say Cindy Christopher, national director, talent acquisition, and Nina Guthrie, national director, university recruiting, at Grant Thornton.

"If you want to make partner, you'll need an executive presence," says Guthrie. "You might know everything and how to do it, but if you don't look the part, you've lost credibility."

That translates to flawless public speaking skills, proper attire and other soft skills, such as knowing how to shoot the breeze with clients while also attending to their concerns.

One of them most important qualities of aspiring partners is the willingness to ask for difficult assignments, Guthrie says. "A person might be on two or three assignments at a time. We need that type of person who's going to do their work really well and invest in both client relationships and relationships within the firm."

The Way Up at Client Companies

If you're working as an in-house accountant, your career advancement will vary depending on the industry you're in and the specific company you have joined. A typical career trajectory might include the following, according to Good of Robert Half:

You'd come in as a junior accountant, bookkeeper or accounting clerk. You might then move up to a senior accountant position, then assistant controller position, then senior vice president of finance and ultimately chief financial officer. You would spend at least a few years at each position.

"If you're at a small company, there are more opportunities for you to grow with the company if that company's successful. It's not uncommon to see that someone has been there for many years and they wind up being the controller or the CFO. There's no one size fits all," Good says.

You'll also navigate a similar route at a larger company. Pamela Craig, the chief financial officer of Accenture, the management consulting firm, began as an accountant, moved into consulting then back into finance before assuming her current position. She spent two years as the senior vice president of finance before moving into the chief financial officer position.

Write to Julie Steinberg at Julie.Steinberg@dowjones.com

Second quarter earnings are revealing a persistently weak financial industry and the necessary steps banks must take: more layoffs.

Over the past year, the six largest U.S. financial institutions have shed 18,000 jobs, The Wall Street Journal reports. That list includes Goldman Sachs, Morgan Stanley, Bank of America, J.P. Morgan, Wells Fargo and Citigroup. Most of the banks are planning more cutting, they announced this week.

In an earnings call yesterday, Morgan Stanley said its staff roster would decrease by 7%, or 4,100 people, due to weak economic growth and low trading volumes. Its revenue declined 24% in the second quarter, the bank said.

The fallout isn't limited to American banks. Both Credit Suisse and Deutsche Bank will be bringing out the ax. Credit Suisse will lay off another 138 employees in New York by the end of the year, while Deutsche will cut nearly 1,000 investment banking staff around the world, most likely senior bankers and back office staff. The one silver lining is the bank doesn't want to cut staff in Germany.

Makes you wish you could say "Ich bin ein Berliner."

Accounting for Winners (FINS)

You've made it to an accounting firm or a private company and you're stoked. Here's how to make it up the ladder.

Part-Time Help (Cleveland.com)

Cleveland-based KeyCorp is not only cutting jobs and closing branches, it's changing the makeup of its staff. The bank may edge toward hiring part-time and temporary workers.

Moving On (Deal Journal)

Robert Wolf, the UBS banker who was chummy with Obama and got in trouble because he was chummy with Obama, is leaving the firm and striking out on his own. Now he and Obama can golf in peace.

Dampening Expectations (Sky)

Attention all precious gems seeking to replace Bob Diamond at Barclays: Major investors have told the bank the incoming chief should be paid "substantially less" than good ol' Bobby. In other words, they're looking for the cubic zirconia version this time around.

Moving to the Front (Mergers & Inquisitions)

Working in the back office at a hedge fund doesn't need to be a prison sentence. Take advantage of your free time to network, network, network so you can take your place in the front office.

Sitting Pretty (NYT)

Alexander Soros, the son of billionaire investor George Soros, didn't want to be just another trust fund kid. So he's devoted himself to graduate school and philanthropy. And fundraisers in the Hamptons.

Buzz Around the Office

Death is Just a Box of Chocolates (Daily Mail)

In the early 1940s, British agents foiled an elaborate Nazi scheme to assassinate British Prime Minister Winston Churchill with a bar of dark chocolate.

List of the Day: When to Know

Here are some signs things are not looking good for you at your current company.

1. People have moderately good, not amazing, things to say about you.

2. You get compliments but no promotions or raises.

3. You get the same negative feedback more than once.

(Source: MoneyWatch)