Cantor Fitzgerald, Goldman Sachs and Credit Suisse are launching units to enter a new line of business called equity wholesaling, which gathers individual stock orders from retail brokerages and passes them through each bank's electronic trading system.

It's another way for banks to generate revenue now that Congress is cracking down on proprietary trading, or making potentially risky bets with the firm's own money.

The firms have some company in the area: Citigroup, UBS and Chicago-based hedge fund Citadel LLC all have divisions devoted to equity wholesaling, although both Citigroup and UBS have been laying off recently. In contrast, Cantor Fitzgerald said last month it will add at least 200 employees across the company in 2012.

"We are looking to build out our sales and trading businesses in both debt and equity," Cantor Chief Executive Shawn Matthews told Bloomberg. "There are a lot of qualified people looking for an alternative to the traditional financial services model that has made many banks act more like massive hedge funds."

A Succession of Sorts (Forbes)

Warren Buffett said he wants his son Howie to serve as his successor, sort of. If the board approves, Howie will be named non-executive chairman upon his father's death. The board will still choose a chief executive.

Dreading the Future (Reuters)

If Congress doesn't extend unemployment benefits, a subject of fierce debate on the Hill right now, nearly 7 million Americans will have to find a way to put food on the table without the government's help.

Entering the Arena (DealBook)

Two former credit analysts have decided to give the big three credit ratings agencies a run for their money. The founders of New York-based R&R consulting are applying to become a federally recognized agency. Meredith Whitney said the same thing last year and hasn't do much about it, so we'll wait a while to express our optimism about hiring.

Well, Wells (WSJ)

The Securities and Exchange Commission has slapped hedge-funder Philip Falcone and his firm, Harbinger Capital Partners, with "Wells notices," an indication that the firm will be charged with civil-fraud violations.

Toning It Down (AOL Jobs)

Studies show that bosses who are perceived to be arrogant are less effective leaders and less well-liked. So start saying hello to the doorman.

Getting a Foot In (Mergers & Inquisitions)

What does one actually do in structured finance? Here's a primer on the business and how to break into it. One good thing for the younger set: Banks like to take 'em young and groom them into future leaders.

Buzz Around the Office

Cruising Around Tokyo (YouTube)

He makes it look so easy.

List of the Day: Making Words Work for You

Some corporate communication experts think we're our own greatest enemies when it comes to getting our message across. We dilute the message with useless words. Here are some to get rid of to make your speech stronger.

1.Any phrase that includes "just."

2."I believe." (replace with "I know.")

3."I feel." (replace with "I'm convinced.")

(Source: Forbes)

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

Goldman Sachs Group Inc.'s vice chairman in the Asia Pacific region excluding Japan, Mark Machin, is retiring from the Wall Street firm after 20 years, according to an internal memo.

Machin, 45, who is a member of Goldman's Asia Pacific Management Committee and Global Operating Committee—which decide strategy and budgets—joined the firm in 1991 in London. He moved to Asia in 1994 and relocated to Beijing in 2009 to help expand Goldman's franchise in China. He is a member of the board of the firm's Chinese securities joint venture.

Having overseen the more-than-doubling of Goldman's headcount in China, the world's second-largest economy, to over 400 people, Machin now plans to move on to a large asset-management firm, according to a person familiar with the matter.

Named a managing director in 2000 and a partner in 2002, he assumed his current role at Goldman this year, reporting to J. Michael Evans, the firm's vice chairman, as well as David Solomon, co-head of investment banking.

The deals Machin led include the initial public offerings of Bank of China Ltd. and its Hong Kong subsidiary, BOC Hong Kong (Holdings) Ltd., both on the Hong Kong stock exchange.

Machin also led the IPO of the Hong Kong Tracker Fund, the Hong Kong government's index-tracking mutual fund. The launch of that fund followed the government's purchase of 200 billion Hong Kong dollars (US$25.7 billion at the current exchange rate) in shares in an unprecedented market intervention in August 1998.

This story first appeared on WSJ.com.

Write to Alison Tudor at alison.tudor@wsj.com

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

As most people have figured out by now, the annual holiday party isn't an opportunity to get sloppy drunk and paw your favorite co-worker. In fact, few things can derail your career faster than acting inappropriately at such a work event.

Office parties can, however, work to your advantage and become an opportunity to advance your career. The casual atmosphere allows you to chat up the boss or break the ice with a new colleague. To optimize your time at the soiree, create specific goals to help you focus; it's not enough to vow you'll stay away from the cocktail station and appetizer trays.

"The most important thing is to remember it's still a work function – it's not just your friends gathering for a good time," says Cynthia Lett, an executive coach and executive director of the Washington, D.C.-based International Society of Protocol and Etiquette Professionals.

There are plenty of surprising ways to make the most of your holiday party, here's how:

Be Ready for Intoxicated Partygoers

"Much has been written about not overdoing alcohol at holiday parties but you also need to be ready to respond in a professional and gracious manner to people who haven't listened to that tip," says management professor Joseph Weintraub, Director of the Babson Coaching for Leadership and Teamwork Program at Babson College in Wellesley, Mass.

If you're stuck conversing with a coworker or manager who's had too many drinks, Weintraub recommends walking away as soon as possible before the person gets even more intoxicated. Use your smartphone as an excuse, he suggests. "In a business setting, being careful that we are not associated with people saying or doing inappropriate things is always important in managing one's career."

Speak to the Higher-Ups

It's easy to mingle with your lunch buddies or spend the night sending out tweets. Instead, get out of your comfort zone and "use the party to have the upper level executives learn who you are – to put a face to your name," says Lett.

Though it can seem intimidating, a quick chat during the holiday party can go a long way toward cementing your work relationship. Before the party starts decide which execs you're eager to chat with and anything you'd like to mention in the conversation.

"Have a hit list of the people you would like to meet, so you can measure your own performance," says Jeffrey Jones, managing director of Human Factor International, a Hong Kong-based executive and trans-cultural coaching firm.

Don't be a Downer

Whether you're bonding over some company gossip or simply airing your frustrations with your company, the holiday party is not the place to do it. "You want to appear as an upbeat, positive, can-do type of person," says Barbara Pachter, a Cherry Hill, N.J.-based business etiquette expert.

Complaining during a holiday party can feel natural. "It's easy to do since there is a lot of bad news in today's business world -- people being laid off, others having a hard time finding work -- the ones that are working are doing more with less," Pachter says.

Keep it Casual

No matter who you're speaking to, there's no need to act like you're at a business meeting. Keep the conversation casual and avoid talking shop. "The holiday party is not the place to complain about your boss, pitch your next great idea, or lobby for your next promotion," Lett says.

Instead, speak about light-hearted topics such as an upcoming vacation, wedding or holiday plans. "Basically, you need to crow a little about the good things you do that will make you memorable to the person you are talking with," Lett explains. Later in the year, the brief interaction may help break the ice.

Charm Significant Others

Your boss's significant other has more power than it may appear -- it's often the person he or she trusts most. At the party, give them special attention.

"Strike up a conversation with your colleagues' significant others," suggests career expert Heather Huhman, founder of Come Recommended, a Washington, D.C.-based marketing and public relations firm. "Making friends with these people can help influence your future career path -- both within the organization and outside of it."

Avoid Black

While a low-cut blouse or anything too daring is inappropriate, women can experiment with color, says Lett. "If you are a woman, don't wear all black -- wear a bright color or unusual color accent so you will be easier to remember," she says. "Also, don't wear strapless dresses – when you sit down at a table, you will look naked to anyone sitting across the table from you."

Men can wear a more festive tie-shirt combination.

Prep Your Date

Even if you say all the right things when schmoozing, your date may slip up. Before the party, "let your date know who's who, what everyone will be wearing, good topics to discuss or issues to avoid completely," says Jill Bremer, an Oak Park, Ill.-based executive coach. "They will be acting as an extension of you at the event, so arm them with everything they need to be successful and make a great impression."

If it's not someone you know well, avoid bringing a date altogether.

Keep Your Right Hand Free

Especially if you work at a large firm, holiday parties mean plenty of introductions, so be prepared to shake hands, says Lyudmila Bloch, a New York-based business etiquette coach. Keeping a drink in your left hand leaves keeps you from stumbling when reaching out your right hand for an introduction. "Keep your business cards in your right pocket," Bloch adds.

Avoid holding on to anything else such as a plate, computer bag or smartphone.

Thank the Hosts

Don't treat the holiday party as a given. "Show the organizers you appreciate their efforts by thanking them before you leave," Huhman says.

"Many companies have cut back on these extravagant expenses, so if you have a company party, you should be thankful." Especially at smaller companies, a more formal way of thanking the hosts such as a handwritten note can show you're enthusiastic to be part of the firm, she says.

Follow-Up With Those You Meet

Keeping in touch after the holiday fete can go a long way in cementing new work connections. "Whenever possible, follow up with people you have met by sending them an article or information about the areas that they are interested in," Weintraub says.

Don't send a follow-up email that's too wordy and write something that doesn't require a lengthy response. Scheduling a lunch or coffee date is another option.

Write to Alina Dizik at alinadizik@gmail.com

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

Tip: Private Equity Hiring Expected to Increase in 2012

Despite a glum market, private equity firms are courting and paying investment professionals, fund marketers and investor relations people. Experts say employees can expect a modest pay increase of between 1% and 4% over levels seen in 2010. What's more, no firms plan to decrease their compensation levels in the coming year. Because PE firms quickly reduced expenses in 2008 and 2009 while shedding headcount, they've recovered to a position of strength. Half of PE firms will hire next year.

Tools to get the job:

The Perfect Private Equity Resume

The Top Five Books for a Career in PE

The Ten Worst Things to Put on Your Resume

Tip: Private Equity Hiring to Take Place in Asia

Now that you know hiring is happening at PE firms in 2012, it's best to know where. The dollar amount of buyouts increased by over 50% in Asia during the past year, and firms such as Blackstone are considering expanding their presence. All those transactions mean firms need qualified individuals who have language skills and capital-raising abilities. In Carlyle's case, you should be a team player and not a "prima donna."

Tools to get the job:

Private Equity Paying More for Less Experienced Analysts

How to Apply for a Finance Job in Asia

Top Eight Rules of Networking

Tip: Banks in China Hunting for Sponsors

Foreign and domestic banks are searching for an elusive type of banker in China: one known as a "sponsor" who is licensed by the government to work on an initial public offering or bond sale. The sponsor guides the process and conducts due diligence on the companies. Only about 2,000 such sponsors exist in China and their salaries are skyrocketing due to high demand and limited supply. To get the coveted title, bankers must take a written exam in Chinese that takes place once a year and show prowess in accounting, law and finance. Morgan Stanley is one firm actively looking for more sponsors to complete deals.

Tools to get the job:

The Perfect Investment Banking Resume

Jobless in America? Try Asia

Former HSBC Chairman David Eldon on Succeeding in Asia

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

If you see the ship's crew vaulting over the gang rail it is probably time to head for the lifeboats. So, does the unusually high number of partners that have left Goldman Sachs in the past few months mean that the US bank's shareholders can expect to experience a sinking feeling?

Is the bank making senior staff walk the plank in an attempt to rein in costs, or are partners leaving by the dozen because they fear more stormy weather on Wall Street or are worried about the seaworthiness of Goldman Sachs?

In the past few weeks, Edward Forst has quit as co-head of the bank's asset management division, Kevin Kennedy has retired as head of Latin America, and the bank's co-head of Asia, Yusuf Alireza, has stepped down. Other long-standing partners have also quit this year, including Julian Metherell, head of UK investment banking; Stephen Hickey, global head of leveraged finance; Jeff Resnick, global head of commodities trading; and Glenn Earle, chief operating officer in Europe.

It's not as if Goldman Sachs doesn't already have enough problems to deal with. In the past year, its share price is down nearly 40% and it is currently trading at 0.8 times book. The bank's model is listing and under threat from regulators. Its public image is trading lower than Greek sub-prime CDOs. It made its second quarterly loss in the third quarter this year, underlying pre-tax profits tumbled 56% in the first nine months of 2011, and annualised pre-tax return on equity was a miserable 8%, compared with 24% at JP Morgan.

Combine this with the apparent exodus, and you have a potent narrative – one that many rivals have been more than happy to latch on to.

Except for one thing: it appears that there is no exodus nor any cull. A more detailed analysis of the comings and goings of partners at Goldman Sachs shows that, if anything, partner turnover has slowed down. And, while trying to emulate Goldman Sachs has got many banks into trouble in the past, the analysis also points to a more sustainable model for the rest of Wall Street.

Partners: a class apart

Partners at Goldman Sachs aren't really partners at all since Goldman Sachs went public in 1999. But, in order to maintain the partnership ethos at the firm, Goldman Sachs created an elite class of über-managing directors called partners. When times are good, they are paid disproportionately better, averaging high single-digit millions of dollars. When times are bad, they are hit disproportionately harder. In 2008, average partner earnings fell by 80%. From 221 partners when Goldman Sachs went public, there are roughly 470 of these gilded beasts today.

Becoming a partner is easy. You just have to bring in lots of money, demonstrate teamwork and total commitment to Goldman Sachs, and pass one of the most rigorous selection procedures known to mankind. In exchange, you are set for life (although you have to keep any stock you earn for at least five years and must always own a minimum of 25% of your stock until the day you retire).

Goldman Sachs tends not to volunteer the names and details of partners who leave, but Financial News has identified 22 partners who have quit or announced their intention to do so this year – less than 5% of the total pool. Of course, other partners may have quietly left this year, but it is quite difficult for Goldman Sachs partners to slip out the back door unnoticed.

That compares with 26 actual departures last year, 36 in 2009 and 48 in a bloody 2008, according to a laborious analysis of Goldman Sachs annual reports over the past four years. Other partners will no doubt leave this year – either because they are pushed or because the outlook is not getting any better anytime soon. But, unless there is a night of the long knives in the next few weeks, talk of a "cull" or "exodus" seems inappropriate.

A powerful incentive

In fact, the analysis shows that far from leaking partners, Goldman Sachs might point to a future model for other banks. The risk here for Goldman Sachs is that one reason its model has worked for the past decade is that none of its main rivals has an equivalent. The head of investment banking at one rival firm (himself a Goldman Sachs alumnus) recently said that the partnership culture is something to which other banks should aspire, in spirit, if not in practice. Here's why.

The unusual kudos and wealth attached to the partnership act as a powerful motivating force to encourage staff at Goldman Sachs to commit to the firm. One analyst covering Wall Street has called it the most "powerful tool of corporate motivation ever invented".

This does wonders for staff retention. Partners at Goldman Sachs have a "half-life" of between six to eight years. Including the known departures this year, just 10% of the 94 partners elected in 2008 have since left. As a random (and unfair) example, compare that with the 60% departures in just three years at the top of the markets division at Bank of America Merrill Lynch.

Nearly three quarters of the 115-strong class of 2006 are still with the bank. Half of the 78 partners elected in 2002 are still in situ, as are one quarter of those promoted in 1998. Overall, the annual attrition rate of departures from each "class" runs at high single digits for the first six or seven years, and then low double digits thereafter. (Kennedy was the last man standing from the class of 1984 – but he'd been a partner for 27 years.) Once in place, partners are almost impossible to prise away from the bank unless they screw up, are promised a truly ridiculous amount of money or a stupidly premature promotion.

The partner model has helped increase average staff tenure at Goldman Sachs from four years in 2001 to 5.5 years today, according to a recent presentation by chief executive Lloyd Blankfein (class of 1988).

This, in turn, creates an unusually high level of experience at Goldman Sachs. The same presentation showed that the average experience at Goldman Sachs on the management committee is 21 years, compared with 13 years for the executive committee at Deutsche Bank's corporate and investment bank and nine years at UBS investment bank. A departing partner is replaced with another with only marginally less experience – the two partners taking on Kennedy's roles were promoted in 1998 and 2002.

The partnership model encourages a more ruthless approach to "up or out" management. Partners are not expected to hang around like a bad smell for decades. The constant pressure from below encourages them to pack their bags at the right time, and also results in a regular winnowing of those MDs below them who fail to make the cut.

The structure also gives Goldman Sachs greater flexibility over compensation than its rivals. Across Wall Street, the average accrued compensation bill fell by just 5% in the first nine months of this year, despite a 10% drop in revenues and 36% collapse in pre-tax profits. The only firm that demonstrably reduced compensation was Goldman Sachs, which slashed it by 24%. This is partly because Goldman Sachs doesn't pay ridiculous levels to its army of vice-presidents and managing directors. It reserves the silly money for its partners.

The partnership, however, is not an ever-expanding circle. In 2012, the bank will most likely appoint another 100 or so partners. Which means that between the last partnership election in 2010 and the end of next year, roughly 100 partners will have to leave – 22 down, some 78 to go. Some will be pushed, others will jump. But there are certainly no signs of an exodus.

This column first appeared on Financial News. William Wright is a columnist on investment banking.

Write to William Wright at William.Wright@dowjones.com

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

For the past two years, New York-based investment bank Jefferies has been a beacon of hope in an often barren hiring landscape. Since the financial crisis, the firm has hired hundreds of employees, including stars from the bigger banks who had been dislodged during the malaise.

Fox Business Network reported that the firm has been making job reductions, mainly in equities, that may total about 11% of the firm's workforce. Headcount stood at around 3,800 at the end of the third quarter. Jefferies declined to comment.

The firm may just be experiencing the same pressures that have forced cost-cutting initiatives at other banks. Like other banks, it may want to simply upgrade existing talent. Moreover, Jefferies has been steadily adding to its Asian equities team over the past several months.

But a more serious situation may be at play. Since MF Global declared bankruptcy, Jefferies has been forced to disclose and defend its own European exposure. Chief Executive Richard Handler has even penned a letter arguing his firm is not a Corzine look-a-like. Still, its share price has plummeted.

Whether the disclosures will be enough to quell concerns remains to be seen. Some believe the firm is ripe for acquisition and will be sold to another bank.

Handler said earlier this year the firm would slow its hiring pace and that "a lot of people want to come work here -- more so than ever."

Bright Spot (Seeking Alpha)

Bank of America will hire 160 financial solutions advisors in Southern California and Arizona by the end of the first quarter 2012. The bank has already hired more than 1,000 FSAs across the country in the last year.

Eat, Drink and Be Festive (FINS)

Want to make an impression at the annual holiday party? Don't get too drunk, plan which higher-ups you'll zoom in on and always make nice with the boss's significant other.

Business As Usual (Financial News)

A recent spate of Goldman partner departures (such as Mark Machin, vice chairman in the Asia-Pacific region excluding Japan) has some speculating about the firm's cache. A new analysis shows that partner turnover has actually gone down in recent years. In other words, GS is still a place you want to be.

Missing Sanctuary (Business Standard)

Multinational banks may be expanding their teams in emerging markets, but individual units aren't immune from global cost-cutting plans. Nomura, Credit Suisse and Morgan Stanley are all shedding staff in India.

Not Taking Chances (WSJ)

Personal accountability seems to be a take-it-or-leave-it concept in the U.S., but the U.K. isn't joking around. A new government report proposes that bank executives and directors face penalties if their institutions end up failing.

Accountants Wanted (Going Concern)

Busy season is upon us and accounting firms are hiring to deal with the increased demand. KPMG is searching for experienced auditors who are happy to help out for the season.

Buzz Around the Office

Young Cappuccino Makers (YouTube)

Lucky parents!

List of the Day: Nine Inspiring Career Books

Nothing like a good read to get you motivated about your career. Here are some top picks:

1. Achieving the Good Life After 50: Tools and Resources for Making it Happen, by Renee Lee Rosenberg.

2. The Good Person Guidebook: Transforming Your Work & Personal Life, by Richard C. Bayer, Ph.D.

3. For Executives Only: Applying Business Techniques to Your Job Search, by Bill Belknap and Hélène Seiler.

(Source: Glassdoor.com)

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

The Federal Deposit Insurance Corp. appears on track to get three members confirmed by year's end, but the full complement of five isn't likely to be settled amid political maneuvering.

Sen. Tim Johnson (D., S.D.), the chairman of the Senate Banking Committee, and the panel's top Republican, Sen. Richard Shelby (R., Ala.) said they plan to move forward with three nominees for the FDIC's board. They are: Martin Gruenberg to be FDIC chairman, former Kansas City Fed president Thomas Hoenig as vice chairman and Thomas Curry to be Comptroller of the Currency.

The banking panel on Tuesday approved Mr. Hoenig's nomination on a voice vote. After voting, Sens. Johnson and Shelby said they would work together to move all three nominees through the full Senate.

However, lawmakers remain at a stalemate about the fate of two other slots on the FDIC board, including one designated for the director of the new Consumer Financial Protection Bureau. President Obama has nominated former Ohio Attorney General Richard Cordray to that position, but his nomination is meeting resistance from Senate Republicans who want to alter the consumer bureau's structure.

A fifth spot on the board is for a Republican-backed nominee, in keeping with a requirement that the FDIC's board not be dominated by one political party, but President Obama hasn't put forth a candidate for that position.

Mr. Hoenig, who isn't affiliated with either party, was submitted for the FDIC job by Senate Minority Leader Mitch McConnell (R., Ky.). Mr. Hoenig is well-liked by Republicans because he was a frequent dissenter from Fed decisions to push down interest rates. He has been a harsh critic of big banks, calling for tight limits on their activities. That stance is anathema to the nation's largest financial firms.

The wrangling follows last year's passage of the Dodd-Frank financial overhaul law, which was intended to put an end to the concept of "Too Big to Fail"—the idea that a company that is so large and interconnected that its collapse could harm the whole financial system and require a bailout by the government.

The financial overhaul law gave the FDIC the power to wind down such large, failing institutions. The agency has established a new office overseeing the most complex financial firms. Regulators have given the largest U.S. banks until next summer to provide them with a "living will" that would present a road map for how they would be liquidated if they fail.

Separately, Senate lawmakers approved two other Obama nominees: Maurice Jones, to be deputy secretary for the Department of Housing and Urban Development, and Carol Galante of California, to be an assistant HUD secretary and head of the Federal Housing Administration. Ms. Galante, however, was approved only by a 13-9 vote, with Republicans expressing concerns about the FHA's financial health.

This story first appeared on WSJ.com.

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

Get ready for a thundering herd next year: Financial advisers eager to stretch their legs will take part in a broker war as firms rev up recruiting.

Recruiting is beginning in earnest as brokers choose to hop to another firm instead of waiting out their retention contracts.

After the financial crisis, brokers at firms like Morgan Stanley Smith Barney, Merrill Lynch and UBS received large signing bonuses and retention contracts meant to keep them in place. Now that they've partially ridden them out, some advisers are skipping out early by signing new contracts that pay for the duration of the retention package.

"We see 2012 being a busy year," Alois Pirker, a research director at Aite Group, told Dow Jones. A survey last spring showed that the number of brokers bound by retention contracts who said they were more likely to leave their firms increased to 25% last March, up from 10% in 2009.

Aware that several big teams might be itching for new territory, firms are capitalizing on the situation and ramping up recruiting efforts.

New Hire (Bank of America)

Bank of America named John Bottega chief data officer. He will oversee data management strategy and policy and will be based in New York, reporting to Enterprise Chief Information Officer Marc Gordon.

Pittsburgh Problems (Financial News)

Gerald Hassell became chairman of BNY Mellon at the end of August. Since then, it hasn't been an easy time for the firm, and it's likely to get worse before it gets better. Still, the bank has been able to hire for certain segments like wealth management.

Hiring Plans (ManpowerGroup)

U.S. employers expect hiring to increase by a modest amount in the first quarter, according to a new survey. It's the most optimistic hiring outlook conducted by ManpowerGroup since 2008.

Almost Complete (WSJ)

The Senate Banking Committee approved Martin Gruenberg's nomination to be FDIC chairman and Thomas Hoenig to be vice chairman of the agency. Both nominations now need to go before the full Senate for confirmation.

Bonus Time (Marketplace)

Bonuses may be down across the board this year on Wall Street, but many employees are just grateful to have a job.

Reassuring News (Poets & Quants)

MBAs can breathe a sigh of relief: Companies still want them. A new survey finds that 74% of 216 companies polled plan to hire MBAs in 2012, up from 58% this year.

Trouble in Ireland (Bloomberg)

Troubled at the prospect of a small or nonexistent bonus this year? Make like some Irish employees and go on strike.

Buzz Around the Office

Lights Blazing (YouTube)

How will they top this for Christmas?

List of the Day: Companies That Offer Benefits to Part-Timers

1. AAA

2. Container Store

3. Lowe's

(Source: Glassdoor,com)

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

Former MF Global Chief Risk Officers Michael Roseman and Michael Stockman have been interviewed by staff investigators of the House Financial Services Committee, but they aren't expected to testify at the Committee's hearing on Thursday, according to people familiar with the matter.

The discussions with the Oversight and Investigations Subcommittee, a subcommittee of the House Financial Services Committee, took place with Roseman last Friday and Stockman on Monday of this week, these people said. Both conversations took place by telephone and each lasted about two hours.

People familiar with the matter say neither Roseman nor Stockman is expected to testify this week at Thursday's Oversight and Investigations hearing on the collapse of MF Global. The hearing will focus largely on regulators' failure to coordinate information sharing on potential issues at the company, a person familiar with the subcommittee's investigation said.

More than a dozen individuals, including those from MF Global, the U.S. Securities and Exchange Commission, the Commodities Futures Trading Commission and the Federal Reserve Bank of New York, have been interviewed as part of the subcommittee's investigation, a source familiar with the matter said.

Roseman served as chief risk officer at MF Global from 2008 through January of this year, when he was notified he would be replaced by Stockman, a risk official who had spent several years at UBS. During his tenure, Roseman had raised concerns and clashed with Corzine over the growing European sovereign debt trades.

Witnesses at Thursday's hearing include Daniel Berkovitz, general counsel at the Commodity Futures Trading Commission, Robert Cook, director, division of trading and markets at the U.S. Securities and Exchange Commission, and Richard Ketchum, chief executive officer at Financial Industry Regulatory Authority. Former Chief Executive Jon Corzine and former President and Chief Operating Officer Bradley Abelow are also scheduled to testify.

The House Agriculture Committee and Senate Agriculture Committee already held hearings, on Dec. 8 and Dec. 13, respectively, on MF Global.

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

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

Looking for a new gig? Sausalito, Calif.-based workplace culture website Glassdoor.com has released its annual list of the Top 50 Best Places to Work in 2012.

Among companies that ranked in the top 50 were tech heavyweights like Facebook, Google, Apple and Intel, finance firms Ernst & Young, Goldman Sachs and PricewaterhouseCoopers, as well as retail and consumer goods businesses like Trader Joe's, J. Crew, Procter & Gamble and Johnson & Johnson. Some of the newcomers to this year's list were the Cleveland Clinic, Sephora USA, Costco and Groupon.

"What's different about this list is that it's based on the employees' choice," said Robert Hohman, chief executive of Glassdoor. The results are complied from feedback of anonymous employees to the site's 20-question employer-ratings survey throughout the year. Fortune magazine puts together its annual list of 100 Best Companies to Work For with the help of consultants and the two lists have some employers in common: Google, NetApp, Southwest Airlines, Scottrade, Qualcomm and Goldman Sachs.

Top companies include those with a high CEO approval rating, competitive compensation and a wealth of highly intelligent employees, Hohman said.

"People love working for Bain and McKinsey because they work with incredibly smart people, solve a variety of difficult, challenging problems, and they get to travel the world," Hohman said. "At Facebook (No. 3), you get to work with incredibly bright people but you also get to work on a platform that nearly a billion people use, and your friends use. It's sort of like being famous."

Other high-ranking qualities were clear communication throughout all organizational levels, and an emphasis on a strong work-life balance.

"Good communication can mean that management clearly paints a vision that they have for the company, and is consistently driving that message down to the troops," Hohman said.

Even companies laying off can rank high if they communicate well. Fourteenth on the list is United Space Alliance, a firm which has had at least six rounds of layoffs since 2009, more than 2,000 of which took place in 2011, after the close of several shuttle programs. "The company did such a good job of explaining and communicating throughout the layoffs, they still made it in the best places to work list," Hohman said.

Companies that encourage a work-life balance for their employees also tend to rank high, he said. "Most, though not all, of these firms have worked out how to be successful while also allowing people to have a life," he said. There are the "mechanical" balances, such as flexible work hours or telecommuting options, he says, as well as firms that simply place value on their staff having a happy and healthy life outside of the workplace. "There's a focus on results, with less of a focus on how many hours people put in."

A number of the companies that ranked highest in employee satisfaction were also those that ranked on Glassdoor's list of toughest companies for job interviews, which was released earlier this year. Consulting firms Bain & Co. and McKinsey fell on that list, as well as Procter & Gamble.

Hohman said that rigorous screening processes could be indicative of a company that selectively chooses people to invest in. "Employees are looking to invest in their own futures, and want employers who are purposely laying a foundation for their future," Hohman said. "People want to find firms that make investments in the employees, firms that see the long-term value of that."

Write to Kelly Eggers

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

You can now add another place to your list of where to find a retail finance job: South Africa.

The country added 53,000 jobs in finance, real estate, insurance and related businesses in the third quarter. Total employment in the finance industry increased in November, for the fourth month in a row, by 0.7% to 1.63 million.

Banks like Standard Bank Group, FirstRand, Nedbank Group and Barclays' Absa Group are trying to entice the 9 million South Africans who don't have bank accounts to use their services.

Smaller lenders, like Capitec and First National Bank, are also hiring. Capitec hires around 200 new employees every month, and First National Bank has brought on more than 800 for its branches.

"Banking employment will continue to grow next year," a Johannesburg economist told Bloomberg. "There is strong growth in the unrecorded economy and it's their banking needs that are being tapped into."

It's not just retail businesses that need folks. JPMorgan's corporate bank has been hiring in the country, and bankers with mining and natural resources experience, as well as currency traders, are in hot demand.

Continuing to Question (FINS)

The House Financial Services Committee interviewed former MF Global Chief Risk Officers Michael Roseman and Michael Stockman ahead of today's hearing on the company's collapse. Neither is expected to testify.

Cutting Jobs (DealBook)

Crédit Agricole will ax up to 2,350 jobs across the bank, with 1,700 targeted in the corporate and investment bank. Like many of its competitors, Credit Agricole is laying off talent in light of the eurozone crisis.

Fearsome Clawbacks (Fox Business)

If you planned to head out the door at Jefferies collectng your bonus, think again. A new plan says you'll have to give back your bonus if you go to a competitor in 2012.

Triumphant Return (WSJ)

After taking a break for exhaustion and stress, Lloyds Banking Group Chief Executive Antonio Horta-Osario will return to the team on Jan. 9. Here's hoping he doesn't have too many relatives staying with him over the holiday break.

Shedding Partners (Bloomberg)

Goldman Sachs has lost 37 partners so far in 2011, some from voluntary resignations. Milton Berlinski, global head of the financial sponsors business, will leave the firm by the end of the year. As Wall Street reporter Heidi Moore noted on Twitter, 'To lose one partner, Goldman Sachs, may be considered a misfortune. To lose 37 looks like carelessness."

Raking It In (Poets & Quants)

A new record's been set for highest MBA starting salary: One lucky London Business School grad just scored a $552,681 job in Australia. Half a million dollars and great surfing? Some guys get all the luck.

Best Places (FINS)

Goldman Sachs, Bain and McKinsey all ranked high on Glassdoor's list of the best places to work in 2012.

Season's Greetings (Daily Mail)

One hedge fund manager is doing right – extremely right – by his employees. He ran up a bar tab of over 70,000 pounds for just him and nine staff members at their Christmas fete. And they say life in the City is drying up.

Buzz Around the Office

Person of the Year (Time)

Time's Person of the Year goes to…the protester. At least it wasn't Kate Middleton, who was somehow runner-up.

List of the Day: Job-Related Smart Phone Apps

If 2012 truly becomes the year of mobile, here is a head start on the best job applications.

1. Business Card Reader

2. Documents to Go

3. Good Jobs

(Source: AOL Jobs)

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

When Erika Walker's good friend set her up on a blind date, she wasn't expecting much more than a nice dinner over a couple of glasses of wine.

The human resources manager for Best Essay Help, a small professional writing and research company in Florida, Walker hires qualified freelance writers. She had turned down one candidate because his writing didn't pass muster and never heard from him again.

Until the middle of the date, when the guy came clean. "He told me that he was the writer whose application had been denied, and he did all of this to get an opportunity to talk to me face-to-face and convince me to hire him," she says. "Is there a way for a date to go worse?"

Aside from an example of poor dating behavior, Walker's experience shows how desperate job applicants are to get hired these days. "Whether they're applying for a job or following up after an interview, most candidates just want a response," says Jayne Mattson, senior vice president of client services with Boston-based career consultancy Keystone Associates.

But how you follow up is as critical as following up in the first place.

An October survey from global staffing agency Robert Half International found that after simply sending a job application, 81% of 1,000 hiring managers want to receive a follow-up message within two weeks. Following up after an interview is even more critical. According to a 2011 survey from CareerBuilder, 22% of hiring managers would dismiss an applicant who didn't send a post-interview thank-you note, saying that it indicates poor follow-through and a lack of interest in the position.

Follow up should begin before you leave the interview, experts say, by asking when they expect to make a hiring decision. Starting your post-interview communication off with that knowledge can help you properly time your attempts.

Always appear gracious, positive, patient and interested, says Bill Driscoll, the New England district president for Robert Half International. Career experts say they've seen everything from scathing follow-up emails from job seekers who think they're out of the running to candidates who write one-liner, "Can you call me back?" messages. Neither falls into the "reasonable follow-up" category. Here's a guide.

What to Say

After an interview, you should send a note within 24-48 hours while it's still fresh in your mind -- and the company's.

"With technology like iPhones and BlackBerrys, you don't have an excuse to not be in touch immediately," says Roy Cohen, a New York City-based career coach and author of The Wall Street Professional's Survival Guide. Handwritten notes are okay to send in addition, says Frank Dadah, general manager of financial contracts with Boston-based staffing firm Winter, Wyman.

Address a note to each individual person you met with – sending a group note doesn't necessarily imply laziness, but sending individual, personalized notes definitely won't. That means no copy-and-pasting. Being personal will increase your likability factor. And spell everyone's name correctly, including the company's. Errors of that sort can be a game-changing embarrassment.

Start by thanking them for the opportunity to meet, and acknowledge that they took time out of their day to do so. Next, note why you think you'd be a good fit for the role. "You've had the opportunity to ask the hiring manager questions about the position," says Driscoll, so this is an opportunity to elaborate on why you are a great fit in writing, beyond your initial cover letter.

In your conclusion, Dadah suggests hitting three points: 1. State that you're still interested in the position; 2. You'll follow up with them again within a specified time frame; and 3. Thank them again. Anything that requires the reader to scroll down the page is too lengthy.

Subsequent Follow Up

After your initial follow up, you might be tempted to reach back out to a hiring manager. "Nudging isn't appreciated," says Cohen. But you can send something equivalent to a reminder note.

Begin with a pleasantry, followed by a sentence explaining where you left off during your last communication, says Mattson of Keystone. "You had indicated to me that you'd be making your final decision during the week of such and such, and I just wanted to follow up to see where you are in that decision,'" is one way to phrase it, she says.

Include something of value in your follow up, instead of simply sending nagging emails. If you completed a course you were taking or closed a big sale, anything that you think will impress them, pass it along.

Mattson also advises that you match the communication medium the interviewer has been using, i.e. returning emails with emails, phone calls with phone calls, etc. "If you've been communicating back and forth with emails and that has been effective, continue to use it," she says. "If you haven't heard back from a person, let an extra week go by and then leave them a voicemail."

Speak in a very respectful manner when you're leaving a message, Mattson says, by saying that you know they are very busy, but wanted to follow up on the email you sent them, and that you're still very interested in the position.

What to Never Say

One of the most common ways in which people flub their follow up is by showing impatience. "Maybe there's a recommendation delay, or something routine that's just slowing down the process, or maybe you're not in the running anymore," says Driscoll of Robert Half. Regardless of the reason, you don't want to blow your chances by being rude.

If the hiring manager gave you a specific date or time frame they'd be working within to make a decision, give them some wiggle room. "People always overestimate," says Mattson, "and you don't want to seem overly anxious."

Mattson says that applicants should choose their words wisely when reaching out, especially when it's subsequent follow up. Namely, she says, don't ask someone to "call you back." Instead, let them know that you'll follow up again within a few days, but, in case they need to reach you, here is the best contact number.

Other no-nos? "Don't reference someone senior in the company who might put in a good word for you," says Cohen. "Wait for them to put the good word in for you."

Cohen also advises candidates avoid gimmicks. "Gimmicks don't really work, except on an exception basis," he says. "We're conditioned to think that sort of behavior can be tolerated, but doing something totally bizarre and out of the box isn't necessarily going to be appreciated."

Save the dozen roses for your girlfriend.

Write to Kelly Eggers

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

Chief financial officers are slightly more optimistic about employment growth in the U.S. for the next year than they were last quarter, according to a recent survey.

Respondents to the latest quarterly Duke/CFO Magazine Global Outlook survey expect U.S. employment to increase by 1.5% over the next year, up from 0.9% they predicted last quarter. At that rate, national unemployment sh ould decrease to near 8% by the end of 2012.

"It's certainly a move in the right direction," said Kate O'Sullivan, senior editor at CFO Magazine. "It's not a huge shift, but people are looking for any sort of positive sign at this point."

“

It's a move in the right direction.

”

The survey polled 1,050 CFOs from global public and private companies across a broad range of industries about their expectations for the economy.

Adding further to optimism on jobs expressed in the Duke/CFO survey, the U.S. Labor Department reported that initial jobless claims fell by 19,000 to 366,000 last week, the fewest since May 2008. The number of claims was lower than most economists had projected.

CFOs are slightly more optimistic about the U.S. economy than that in Europe and have plans to increase capital, technology and marketing spending, O'Sullivan said.

Nearly 50% of CFOs in Europe say they expect their countries will enter a recession in the next six months, while 90% say the debt crisis has negatively affected their business. As a result, they don't expect employment to increase at all during the next 12 months.

CFOs expect employment to grow in Asia, but at a rate of 5%, two points less than the 7% expected last quarter. Still, the decrease shouldn't worry jobseekers too much.

"Expectations for growth in Asia are slowing a bit, which reflects general unease about the global economy, but some slowing is probably OK," O'Sullivan said. "The rate may be moderating but it's still healthy growth."

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

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

Morgan Stanley said it will eliminate 1,600 jobs in its first sweeping cutbacks since the financial crisis, joining the legions of financial firms slashing staff at a time of soft revenue and acute economic uncertainty.

The cuts amount to 2.6% of the New York securities firm's work force and represent an about-face from the company's recent hiring push. Morgan Stanley made 400 hires starting in late 2009 in a bid to bolster its trading business, which at the time was a source of giant profits for Wall Street firms.

But trading profits have been hit by turbulent markets and advisory businesses are under pressure amid questions about the prognosis for the global economy, as Western economic growth remains sluggish and Europe's debt crisis smolders. Facing those troubles and tightening regulatory requirements, banks have been cutting back.

The layoffs, to take place globally across all of the company's job levels, represent the largest number of job cuts for the investment bank since late 2008 and early 2009 when it laid off more than 2,500 employees. Morgan Stanley reported 62,648 employees as of the end of the third quarter.

These cuts, though, won't be in client-flow businesses and will have less impact on areas such as the company's equities division where its revenue has climbed this year despite turbulent market conditions.

Within the trading business, layoffs will instead occur in some capital-intensive fixed-income businesses such as securitization, structured credit and related areas including correlation trading—units where Morgan Stanley must hold a higher capital cushion against risky assets. Banks such as Morgan Stanley are looking to build capital under international regulatory standards being phased in over the coming years.

The cuts will include some investment bankers and their staffs.

A company spokesman confirmed the layoffs would follow Morgan Stanley's "year-end performance-management process" and its evaluation of the "right size of the franchise."

Following the reduction, Morgan Stanley's global work force could drop to just over 61,000 early next year, though the company may elect to add personnel in select areas and boost that figure.

While the job cuts will extend into Morgan Stanley's global wealth-management unit, none of the firm's roughly 17,290 financial advisers will be affected, the spokesman said.

Banks across the financial-services industry, including Goldman Sachs Group Inc. and Citigroup Inc., have slashed their head counts since last spring due to subdued client-activity levels as concerns about the European debt crisis have swirled and high market volatility has persisted.

Before Thursday, Morgan Stanley hadn't disclosed any widespread job cuts, though it had already launched a three-year expense-savings initiative, in which it plans to save $1.4 billion.

For Morgan Stanley, the layoff news came as Wall Street continues to slash quarterly earnings estimates on the company and its main rival, Goldman Sachs, due to weak capital-markets conditions and a challenging trading environment.

Earlier Thursday, Barclays Capital analyst Roger Freeman chopped his fourth-quarter earnings estimate on Goldman Sachs to 75 cents a share from $1.75 and reduced his Morgan Stanley outlook to a loss of 81 cents a share from 22 cents a share, due in part to a large charge from the company's settlement with MBIA Inc.

Mr. Freeman said "industry investment-banking revenue is expected to post its weakest quarter since the first quarter of 2009 with trading businesses not far behind."

News of the planned layoffs at Morgan Stanley was reported earlier Thursday by Bloomberg News.

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

It couldn't hold out forever. A few months after all the other big banks announced layoffs, Morgan Stanley said it plans to shed 1,600 jobs across the firm.

The cuts comprise 2.6% of the entire workforce, which numbers around 62,650, and will take place across all levels. It's the largest number of job cuts the firm has had to make since the 2008 financial crisis, when it laid off more than 2,500 employees into 2009.

The ax will fall in fixed-income businesses, while equities will be spared the brunt of it. Investment banking will also take a hit.

The one piece of good news? The firm's herd of 17,290 financial advisers will remain intact, though there will be some cuts in the wealth management unit, presumably in support and back-office functions like technology and operations.

The layoffs are hardly surprising; market volatility and the European debt crisis have prompted cuts at numerous firms around the world.

Following Up (FINS)

The game isn't over once you leave the interview room. That's when you leap into action: Here are the right ways to follow up with HR so you seem interested, not indifferent. Or a psychotic stalker.

Consumer Retailing (Mergers & Inquisitions)

It's December, which means stores are hawking their wares furiously in the dwindling days before Christmas. If you've got a good grasp on what consumer confidence means, you may want to consider a career in consumer retail investment banking.

Don't Stop (WSJ)

It's the end of the year but don't let it become the end of your job search. Companies still eager to hear from jobseekers in December, so keep being proactive about sending resumes out and attending job fairs.

Cracking Down (Marketplace)

Traders at Credit Suisse will now have an extra week of vacation every year. Not for their health, but to separate them from their computers so compliance and risk people can check irregularities that may signal rogue trading underfoot.

Coming from Behind (TheStreet)

Wells Fargo is known for its commercial banking and mortgage businesses, but the bank is fast making a dent into the investment banking and capital markets spheres inhabited by flashier firms.

Stepping Up (Business Insider)

Just a day after it was announced that Goldman legend Milton Berlinski would leave the firm, his replacement has been named. Peter Lyon, a longtime PE honcho who was made partner in 2006, will take over as head of the financial sponsors group.

Cautionary Tale (London Evening Standard)

Lloyds Chief Executive Antonio Horta-Osorio, who left the bank temporarily to deal with exhaustion and stress, has a message. Not for the shareholders or employees of the bank, who are presumably wondering how he's going to turn it around, but rather for the insomniacs among us. "Anyone under extreme pressure and suffering should seek professional help fast," he said.

Buzz Around the Office

Holiday Hogs (YouTube)

Pick a hedgehog, dress him up and watch him sing.

List of the Day: Starting Small

Don't be afraid to ask to be accommodated at work on certain things. Here's how to do it.

1. Ask for flexible scheduling and work-from-home options.

2. Ask to move a meeting time if it's easier for you.

3. Ask for more training or a mentor to help you learn something new.

(Source: Forbes)

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

The chief executive of Lloyds Banking Group PLC on Thursday said he had fully recovered from a prolonged bout of insomnia that prompted a leave of absence and was ready to return to work in early January.

Disclosing more details about the unexpected leave, the bank said that António Horta-Osório would return Jan. 9 and the decision for his return was unanimous after the board had received independent medical evidence that he is in the clear.

"I am 100% recovered. I take my responsibility very seriously and if I weren't 100% recovered, I wouldn't have told the board I was ready to return," he said in an interview.

Horta-Osório sent shock waves through London's financial community last month when the bank said he was taking a leave of absence due to "exhaustion." Time off for fatigue is a virtually unheard-of move for the chief executive of a major bank, and it was especially surprising for Horta-Osório, who had been on the job less than a year and has been seen as a rising star in the financial world in London.

He had been in such a state of overdrive that he couldn't sleep, culminating in a recent stretch of five consecutive nights without sleep, triggering his leave of absence, according to people familiar with the matter. Horta-Osório spent several weeks at a U.K. clinic, The Priory, known for treating celebrities for exhaustion, stress and other issues.

His departure set off a scramble at Lloyds. At first, the bank appointed Finance Director Tim Tookey as interim CEO—but only as a short-term measure as Tookey already had said in September that he was leaving in 2012 to become chief financial officer of Friends Life, a pension and insurance firm.

Lloyds subsequently said nonexecutive director David Roberts would take over from Tookey as interim CEO if Horta-Osório didn't return by January.

Lloyds, the U.K.'s third-largest bank by assets, recruited Horta-Osório last year to succeed then-CEO Eric Daniels. Horta-Osório had earned a reputation as a savvy banker and charismatic leader during his time at the helm of Banco Santander SA's U.K. unit. Upon becoming CEO last March, Horta-Osório quickly replaced most of Daniels's senior management team with new executives, many imported from Santander.

Known in the business as a micromanager, Horta-Osório launched an ambitious overhaul of the bank when he took up his post in March this year. He expedited the sale of the bank's 632-branch network as part of a wide-ranging asset disposal program and instituted a broad costs-savings strategy.

On his return, Horta-Osório will have his workload lightened by the rest of management who will have more power, Lloyds said, adding that the move was at Horta-Osório's suggestion. This will prevent any recurrence of his exhaustion, said Win Bischoff, Lloyds chairman. "We believe, and he believes, that he is fully recovered and that there will be no relapse," Bischoff said on a conference call Wednesday.

This story first appeared on WSJ.com.

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

The year 2012 is just around the corner but some don't think it's going to get better on Wall Street.

Bank analyst Dick Bove of Rochdale Securities said in a note to clients that banks will see another 150,000 layoffs next year. To be clear, those are in addition to the 200,000 that went down in 2011. Yikes.

Government regulation and plummeting share prices will be responsible for the layoffs, Bove said. He also warned that the layoffs wouldn't affect big banks exclusively; smaller ones, he says, will "hurt far more than the large ones" because of government restrictions on balance sheet size, among other things.

The industry will face further rules in 2012 that will "increase the cost of financial services and reduce the industry's revenues," thereby also shrinking the number of Wall Street workers.

Asian Expectations (WSJ)

Europe's debt crisis is spreading quickly and other continents are feeling the burn. Banks in Asia are expected to cut 20% of their staff in January, and many of the remaining lot won't get a bonus this year.

Saved by the Bell (American Banker)

Congress got its act together and passed a spending bill so agencies don't have to shut down. More importantly, the CFTC won't have to fire anyone because it was able to reallocate $10 million from the tech budget to salaries and expenses.

Declining Credit (DealBook)

Credit Suisse is doubling down on its support staff. The firm is combining the back-office functions for its investment and private banking divisions so as to save on costs. In related news, it announced plans to let go roughly 50 employees in the New York office.

Personal Accountability (SEC)

Here's where the U.S. Securities and Exchange Commission stops being polite and starts getting real. The agency is charging six former bigwigs at Fannie Mae and Freddie Mac with securities fraud. The agency believes they misled the government and public about how much subprime exposure they had.

Sorrows at Soros (Reuters)

Layoffs have been going down at Soros Fund Management, the investment fund of billionaire marijuana-enthusiast George Soros. Stock analysts have been laid off as new Chief Investment Officer Scott Bessent reshapes the company.

How to Network (AOL Jobs)

Networking isn't just about hoping to run into someone who might be able to hire you one day. It's about being able to strike up a conversation with anyone about where you want to go in your career and how you might be able to help the other person do the same thing.

Getting Back on the Ramp (The Juggle)

A new study finds that working mothers are happier and healthier than stay-at-home mothers. You don't have to rush back to work right away, but once you do your stress will (somehow) be reduced.

Buzz Around the Office

Camel Attack! (YouTube)

When interviews go all wrong.

List of the Day: Things to Stop Doing in 2012

Or you could start now if you're feeling ambitious.

1. Don't feel the need to respond to EVERY email right away.

2. Don't take on projects or extra work that aren't worth it.

3. Give up mindless traditions if they're not helping you get ahead.

(Source: Harvard Business Review)

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

Tip: Banks in South Africa Need Talent

Time to get your safari on. Compared to Europe and America's situation, the South African banking industry is positively booming. The country added 53,000 jobs in finance, real estate, insurance and related businesses in the third quarter and will continue to grow. Banks big and small are hiring in the country for retail personnel as well as corporate bankers, investment bankers and currency traders.

Tools to get the job:

The Perfect Investment Banking Resume

Finding a Finance Job Abroad

The Perfect Sales and Trading Resume

Tip: CFOs Project More Hiring in the U.S. and Asia Next Year

Chief financial officers are feeling a little bit more optimistic about domestic employment growth for the next year than they were last quarter. They expect employment to increase 1.5% over the next 12 months, up from the 0.9% they predicted last quarter. They're also still enthusiastic about hiring in Asia, predicting 5% employment growth for the next year. Don't even mention Europe, though; CFOs aren't expecting any employment growth whatsoever.

Tools to get the job:

How to Follow Up After a Job Interview

Looking for Work Over the Holidays

Top Eight Rules of Networking

Tip: Firms Recruiting Financial Advisers

Broker wars will continue in earnest in 2012 as financial advisers break their retention contracts and receive signing bonuses from new firms. Wirehouse firms like Morgan Stanley Smith Barney, Merrill Lynch and UBS have already started courting teams and will continue to do so next year. Industry experts say that more brokers now than ever are willing to leave their firms.

Tools to get the job:

The Perfect Financial Adviser Resume

So You Want to Be a Financial Adviser

What to Wear to a Finance Interview

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

The winds of change are blowing in Europe, and they are not necessarily a great sign for 18,900 Royal Bank of Scotland employees.

Following a strategic review by global management consultancy McKinsey, the 83% taxpayer-owned bank is considering a major reorganization. At the epicenter is its Global Banking and Markets division, which was reported as recently as August to be "recruiting for all functions and in all regions."

Recent market turmoil and RBS's investment in an electronic platform, however, have been a game-changer. The Telegraph reported that the firm is now considering closing its entire equity operation, shuttering nearly half of its investment bank and offloading Hoare Govett, its stockbroking business. The bank is also expected to reduce its North American operations. The nearly 19,000 workers in the GBM division "have been warned to prepare for large-scale redundancies."

The reports coincided with Chancellor George Osborne's announcement that banks like RBS must "ring-fence" their retail banking divisions to protect them from the potential losses from risky investment strategies. The announcement is in line with RBS's third quarter earnings statement, which said the firm would shift its focus to retail and commercial banking and away from its i-bank.

Go East (Reuters)

Investment bank and hedge fund staffers in Hong Kong have seen pay increases of about 15% over the last year, while pay for comparable jobs in the City rose by 12%.

Frozen Over (FT)

In an attempt to assuage the mounting emotions surrounding banker pay in the U.K., Lloyds announced it would freeze salaries of top management.

A Weight Lifted (NYT)

If you're feeling pressured for time, try "sweatworking" – a new trend that mixes schmoozing with sit-ups.

Bonus Blues (Bloomberg)

Swiss newspaper Der Sonntag reported that bonuses at Credit Suisse will be cut by 40% this year.

Recruitment and Retention (AccountingToday)

A new survey from the American Institute of CPAs found that 91% of accountants surveyed consider career advancement opportunities the No. 1 reason why they want to work at a particular firm.

Making a Case (Bloomberg)

More than a decade after taking the top seat at Jefferies, Chief Executive Richard Handler finds himself sparring with investors.

Out of Options (WSJ)

Forget working into retirement. Many unemployed older workers are already out of cash.

Feedback-Free (WSJ)

A small percentage of companies have decided to scrap the annual performance review. A new survey found that most firms believe their performance management systems are average at best, and that post-review, the majority of employees don't actually make any improvements.

Buzz Around the Office

The Long and Winding October Road to Ensenada (Fast Company)

One British design collective created a map made up entirely of the streets, parks, rivers and locales mentioned in song titles.

List of the Day: Understanding Your Personal Brand

Contrary to popular opinion, your personal brand isn't all about you. When developing your brand, ask yourself:

1. Who is your audience.

2. How can you help them.

3. What makes you different.

(Source: Glassdoor.com)

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal

It's that time of year again: Many workers and managers are preparing for the dreaded performance review.

But some companies are deciding not to do them.

While most continue to perform the awkward rite of passage once or twice a year, a few companies—about 1%—are scrapping the formality altogether, according to the Corporate Executive Board. The thinking is that performance reviews are angst-provoking and even ineffective in actually motivating workers.

Performance reviews have long received poor grades, even from those who conduct them. Nearly 60% of human-resources executives graded their own performance-management systems a C or below, according to a 2010 survey by Sibson Consulting Inc. and WorldatWork, a professional association. And one academic review of more than 600 employee-feedback studies found that two-thirds of appraisals had zero or even negative effects on employee performance after the feedback was given.

Last year, Atlassian Inc., a software company based in Sydney, Australia, embarked on a publicly blogged experiment, still in place today, in which it got rid of traditional performance reviews for its 450 workers.

Previously, employees were reviewed twice a year on a five-point scale, plotted on a distribution curve, which determined workers' bonuses. But "instead of discussion about how to enhance people's performance, the reviews caused disruptions, anxiety and demotivated team members and managers," says Joris Luijke, the company's vice president of talent.

In place of reviews, the company asked managers and subordinates to discuss performance and goals at pre-existing weekly one-on-one meetings. Feedback now goes both ways.

As a springboard for discussion, participants, using an online app, are asked to drag a dot along an axis to answer questions like, "How often have you stretched yourself?" Instead of writing up lengthy assessments, they note a few pointers on why they dragged the dot to a certain place.

The company also got rid of the distribution curve and individual performance bonuses, instead giving everyone an 8% salary bump, as well as group performance bonuses and stock options.

Traditional top-down performance reviews can also cause intimidation among employees and make them fearful of acknowledging weaknesses, says Samuel A. Culbert, a management professor at the University of California, Los Angeles and co-author of the book "Get Rid of the Performance Review!"

Still, some experts caution that scrapped performance reviews must be replaced with some form of feedback mechanism.

Without required, documented reviews, some employees may be able to slack off without repercussion. Others may fail to be recognized for their achievements.

Additionally, companies that bypass reviews say it places a lot of responsibility on both managers and employees to have those difficult conversations that can fall through the cracks when not mandated.

Other companies worry that failing to officially document performance can pose problems if an employee is let go.

For the University of Wisconsin Credit Union, giving up performance reviews didn't work. When the company eliminated formal reviews in the 1990s, it didn't replace them with another clear-cut feedback system. "There was a void," says Lee Wiersma, chief human resources officer, who joined the Madison, Wis., company in 2000.

Since then, the company has gradually instituted semiannual performance reviews that are tied to pay and promotions. The performance criteria are based on the requirements found in a job description, which are updated regularly to stay current and realistic.

But other companies that have given up reviews have had more positive experiences. A yet-to-be published study, by researchers Vicki M. Scherwin, Jean-Francois Coget and Randall J. Kirner, examined 17 firms without formal performance appraisal systems. Those organizations all reported low turnover, high employee morale and strong relationships between managers and employees, among other benefits, found the study.

When feedback is "not going to be used to judge you or your fate in the company, you are more likely to be open about where you need to grow and it's going to be far more effective," says Dr. Coget of California Polytechnic State University, San Luis Obispo.

Glenroy Inc., a Menomonee Falls, Wis., packaging-film manufacturer with 178 employees, has successfully operated without formal performance reviews for about 20 years.

"No one liked giving them. No one liked receiving them. We looked at each other and said, 'Why are we doing this?' " says Nancy Seeger, Glenroy's director of human resources.

Rich Buss, the company's president, acknowledges that the informal appraisal system places a lot of responsibility on workers to be proactive about offering advice.

But the company has implemented management training sessions to help workers become more comfortable with giving and receiving feedback.

The company uses an outside salary consultant to determine pay based on the duties of the job and years of service. If managers and employees think they are ready for new responsibilities, workers are promoted to new positions at higher pay.

This story originally appeared on WSJ.com.

• Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
• Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
• Morning Coffee: Sign up for the latest in finance career news
• FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal