It turns out that commodities trading isn't a no-brainer, after all.
Barclays is making adjustments to its base-metals trading team after a number of bets the firm made on copper, nickel and aluminum resulted in losses, reports The Wall Street Journal. While the firm said that "there has been no abnormal trading in the commodities business," many investment banks are facing scrutiny for the risky trading practices that have had seismic effects on the global markets.
On the line are London-based Iain MacRae, who heads the base-metals trading team, and trader Christian "Nelson" Saunders. The bank won't shut the desk entirely, and it won't scale back in more active areas like metal financing, The WSJ cites people familiar with the situation as saying.
For Barclays Capital, the real culprit in the losses was copper, when its price hit a 52-week low in October after setting a record in February. It also lost money in nickel, and more recently, aluminum. The WSJ reports that broker estimates put the aluminum losses in the tens of millions of dollars.
Barclays, which has been boosting activity in the physical metal-movement arena, is not the only bank to scale back in commodities trading in recent weeks. In the last week, both Credit Agricole and Cargill Inc. announced changes or eliminations within their commodities teams.
The number of job openings for hedge-fund marketers is on the rise, and so is the amount they're getting paid. Average bonus pay for marketers rose 29% in 2010.
Private equity firms that are snatching up struggling loan portfolios in Europe are getting a good deal: Not only are they purchasing assets at lower prices, they're getting the bankers who worked on the portfolios with them.
The chief financial officer of French bank Credit Agricole, Bertrand Badre, has been poached by the bank's rival, Societe Generale.
An Unlikely Path (WSJ via FINS)
The career path of Kathy Patrick began in beauty pageants and wound up in the legal profession. She's made her name as a lawyer for bond investors looking to recover money lost on fraudulent mortgage-backed securities.
Those looking to join the business of managing millionaires' money are having a harder time than expected becoming millionaires themselves.
The Times are Changing (Fortune)
The week between Christmas and New Year's is typically a time people take off from work and use up the last few days of paid vacation time. This year, however, 64% of 12,000 employees surveyed said they'll be working a normal week.
The number of Americans filing new jobless-benefits claims was the lowest in three-and-a-half years.
Buzz Around the Office
Car Wash (YouTube)
Getting the job done as quick as possible.
List of the Day: The Average Joe's Career Lessons
Career lessons and advice, in the words of everyday professionals.
1. "I just give 100% to my employer and good things happen."
2. "Stay on your path and don't allow negative words and circumstances to knock you off course."
3. "Read any success manual, and it will tell you that a positive attitude will precede a positive outcome."
(Source: CareerBuilder)
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