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.
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.
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.
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.
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