How Wall Street giants made the transition to run their sprawling operations remotely — and why it could transform the future of work
The coronavirus sent Wall Street banks scrambling to put in place work from home policies to protect workers and clients and make sure business can carry on with as little disruption as possible. The US is grappling with the economic consequences of the pandemic, which has roiled global markets and shut down much of the country. Firms are starting to realize that their contingency plans might be in place longer than they anticipated, causing them to rethink tech and office space. Here's a look at how financial institutions that dominate dealmaking, trading, and consumer banking are being shaped by the pandemic. Visit BI Prime for more Wall Street stories.
The global spread of coronavirus has pushed Wall Street into a new era with little warning. Bank executives, fund managers, and traders had to figure out how to keep employees and clients safe while also keeping their sprawling operations running with as little disruption as possible. Now, early into the transition to working from home, some already considering how coronavirus will change the way they work in the long run. Amid all this, financial firms are as busy as ever. The US went from an economic expansion with low unemployment rates and stock market highs to what is likely a recession with unprecedented numbers of Americans filing for unemployment and trillions of dollars of wealth evaporating. The Federal Reserve and Congress have pulled all the levers at their disposal to quell the unprecedented shock to the economy as the majority of Americans stay home to stem the spread of the virus. Business Insider is tracking how Wall Street is handling this new reality. See below to read the latest. Banking and private equity
Blackstone CEO Steve Schwarzman says some big investors are 'cool' with Zoom calls replacing in-person meetings, and that the PE giant nabbed $500 million remotely earlier this week The CEO of Training The Street, which coaches 30,000 bankers each year, explains how Wall Street is gearing up for virtual summer internships Morgan Stanley CEO James Gorman, who had coronavirus, explains how he's thinking about getting people back into the office safely Inside a 38,000-person remote work rollout at Goldman Sachs: sleepless nights, assembly lines, and an Amazon-like hub on a Manhattan trading floor Citi's head of campus recruiting explains why the bank just guaranteed full-time offers for interns, and shares its latest thinking on going virtual this summer The CEO of a cloud-based trading tech startup that saw a 30% surge in business last month says the coronavirus is a catalyst for overhauling how Wall Street works How Bank of America found itself facing repeated backlash for its coronavirus response even as banks try to paint themselves as heroes of the crisis 'The best run I've ever had': Inside Wall Street's coronavirus-fueled trading frenzy, where historic shocks of volatility are creating massive paydays. Wall Street's disaster playbook never included work-from-home trading. Insiders explain how banks rapidly adjusted during one of the most chaotic markets in history. Bank of America is pausing financial adviser training for 650 people and reassigning them to handle surging calls from consumer and small-business customers. How a massive New York hospital secured 130,000 N95 masks from China with help from a senior partner at Goldman Sachs, private jets, and a call to Warren Buffett. Goldman Sachs CEO David Solomon just sent a firm-wide voicemail about the coronavirus crisis. Here's what he told employees. Toddler meltdowns and spilled milk. Here's how Wall Street's high-flying — now grounded — bankers are working from home.
How UBS's massive US wealth business made the switch to remote work — and which changes could stick around in the long run Here's exactly what the world's biggest wealth managers are doing to keep their richest clients happy during the pandemic 'People are freaking out': 6 wealth managers told us how they're handling client meltdowns as the markets tank
'We are in an unprecedented moment of global distress': Read the full memo billionaire Ken Griffin sent to Citadel employees on the coronavirus crisis A liquidity crunch for the hedge-fund industry's biggest backers could force redemptions on even top-performing funds Read the 2-page note billionaire Ray Dalio sent investors laying out his coronavirus game plan
Exchanges & fintech firms
Here's which fintechs will soar and which will flop as funding dries up, according to 6 investors and dealmakers 'We are not going to go back': Tradeweb's CEO explains why working from home is a game changer for the $1 trillion-a-day marketplace NYSE's COO explains why the exchange is committed to reopening its iconic trading floor even as Wall Street quickly adapts to remote work A UBS exec lays out the benefits and pain points of all-electronic trading after coronavirus concerns cleared the floor at NYSE CME and Cboe are clearing trading floors as coronavirus spreads, and one veteran trader thinks the millions they'll save will be too good to ever reopen the iconic pits 11 fintech investors share advice they are giving startups to help them get through a market downturn and funding drought. 'This isn't measure 10 times and cut once. This is just make the cut.' Join the conversation about this story » NOW WATCH: How waste is dealt with on the world's largest cruise ship
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Summary List Placement The Department of Justice filed its long-awaited antitrust case on Tuesday against Google...Summary List Placement The Department of Justice filed its long-awaited antitrust case on Tuesday against Google for what it alleges are unfair advantages in search and online advertising. At first glance, this has little to do with Wall Street, beyond those who have made investments made in the tech space. However, it's worth considering how this might impact the overall push by Big Tech to get deeper into banking. Whether it's helping to facilitate payments or operating marketplaces, the past few years have seen tech companies increasingly add features and tools that make them look more like a financial companies. But, with this latest case, it seems unlikely that anyone in Big Tech will make a considerable push into banking in the near term, lest they also catch the eye of regulators. If you're not yet a subscriber, you can sign up here to get your daily dose of the stories dominating banking, business, and big deals. Tune in on Tuesday, October 27 at 12:00 pm ET for a virtual event sponsored by Salesforce, looking at how Professional Services firms are navigating and driving growth during the COVID-19 era. Register here. Like the newsletter? Hate the newsletter? Feel free to drop me a line at firstname.lastname@example.org or on Twitter @DanDeFrancesco. Morgan Stanley's mad over messages Big news of the day was a report, first out of SparkSpread, about Morgan Stanley parting ways with two of its most senior commodities executives. Morgan Stanley's Nancy King, its global head of commodities, and Jay Rubenstein, its head of commodities trading, have both left the bank over their use of WhatsApp. Reed Alexander has the full rundown, along with some context around why messaging platforms have become such an issue for Wall Street. Click here to read the entire story. Security experts at Goldman Sachs and Intel lay out why tech supply chains are a critical but often overlooked part of beefing up defenses Everyone knows you need to keep you tech and software safe. But what happens if it's already compromised before it's delivered to you? I spoke to security experts from Goldman Sachs and Intel about the importance of supply-chain security. Read the whole story here. Victor Perez served in the Navy before entering the world of finance. Here's how the credit-derivatives trader is helping other veterans find their footing on Wall Street. Here's a great piece from Reed Alexander on a veteran who's giving back to help fellow vets transition to Wall Street. Victor Perez is a vice president in credit derivative trading at Wells Fargo that is a cofounder of the Charlotte chapter of the Veterans on Wall Street initiative. Read more about the program here. This company is building 3-D printed, small homes on existing residential properties to fight back against California's housing shortage. Look inside a unit that was move-in ready in one week. Ever wondered what a 3D-printed home looks like? Alex Nicoll takes you inside a house built by Mighty Buildings, a construction tech startup. Take a peak inside one of their homes here. Nasdaq's CEO says the cloud is the 'future of the industry' and the tech could be used to conduct actual trading within the next decade Nasdaq CEO Adena Friedman minced no words when speaking at Business Insider's Global Trends Festival: The future is in the cloud. Read more about how Friedman sees exchanges using cloud computing. Odd lots: How to get hired into private-equity in 2020: Insiders reveal everything from navigating shifting recruiting timelines to how you can break into top firms like Blackstone and TPG (BI) Bain's CEO unpacks the 3 biggest challenges companies are facing during the coronavirus pandemic (BI)The 8th Wonder of the World* (The Verge) BlackRock Says Scale of Restructuring May Exceed 2008 Crisis (Bloomberg) Goldman Poised to Pay More Than $2 Billion in DOJ's 1MDB Probe (Bloomberg) Commercial REITs for Small Investors See Increasing Demand (WSJ) Join the conversation about this story » NOW WATCH: Why it's okay to eat the brown part of an avocado
Citi wages war with hedge funds — Pimco takes on BlackRock's Aladdin — Balyasny's PM training program
Summary List Placement Happy hump day. Wall Street's attempt at returning to some form of normalcy...Summary List Placement Happy hump day. Wall Street's attempt at returning to some form of normalcy has already hit its first roadblock. JPMorgan had to send some employees home after someone on its equities trading team tested positive for the coronavirus, as reported by Bloomberg. It was difficult timing for Wall Street's biggest bank, as its chief executive, Jamie Dimon, had just finished speaking at a conference about the importance of returning to work and reopening cities. If you're not yet a subscriber, you can sign up here to get your daily dose of the stories dominating banking, business, and big deals. Like the newsletter? Hate the newsletter? Feel free to drop me a line at email@example.com or on Twitter @DanDeFrancesco. Citi wages war with hedge funds Back again with another great story out of Dakin Campbell, who has a scoop about Citigroup freezing out the firms it's locked in a legal battle with over the $900 million wire it mistakenly sent. In case you missed it, Citi is currently at odds with about a dozen hedge funds and investment firms that refuse to return money the bank mistakenly sent to them last month on behalf of Revlon. Most financial firms in that position would look to the legal system to try and claw their money back, something Citi has already done But, Citi has another trick up its sleeve. Being one of the most powerful banks on Wall Street has its perks. And the bank has leveraged its position as a key trading partner to freeze out the firms it's at odds with. Click here to read the full story. Zumper, a home-listing site that has raised $150 million from backers like Blackstone and Kleiner Perkins, weeded out thousands of Section 8 renters in a practice some experts say may amount to discrimination Daniel Geiger has an absolute must-read story about home-listing site Zumper. Daniel got his hands on some data that shows how the startup, which has big-name backers like Blackstone and Kleiner Perkins, screens lower-income tenants who receive government assistance. This is one you want to give a read. Inside $8.3 billion Balyasny's Anthem training program, where aspiring portfolio managers are handed hundreds of millions of dollars to prove they can cut it Think you have what it takes to be a portfolio manager? Balyasny Asset Management has a program for you. Reed Alexander and Bradley Saacks have all the details on how the $8.3 billion hedge fund finds its next money managers. Here's the full story. $1.9 trillion PIMCO just launched a new tech team aimed at taking on BlackRock's massive Aladdin business — read the full memo here BlackRock's Aladdin is arguably one of the most successful tech platforms since the wake of the 2008 financial crisis. So, it's no wonder others would look to challenge its business. Enter $1.9 trillion PIMCO. Bradley Saacks and Rebecca Ungarino have a memo outlining the giant asset manager's plans. A majority of Goldman Sachs' summer interns prefer Instagram to TikTok, believe remote work hurts relationships, and think Biden will be elected president in November Biden over Trump. Instagram over TikTok. Dogs over cats. These are some of the takeaways from Goldman Sachs' annual intern survey. Reed Alexander has the entire story here. Odd lots: Davis Polk announces surprise associate bonuses of up to $40,000, becoming the latest firm to tout its financial strength amid the pandemic (BI) Silver Lake-Led Group Pours $650 Million Into Payments Company Klarna (WSJ) The rise of another Indian at Masayoshi Son's SoftBank (The Economic Times) After Wirecard, Ernst & Young Says Auditors Should Focus More on Fraud Prevention (WSJ) Viral videos of a 'UFO' in New Jersey really captured a Goodyear blimp (Insider) Join the conversation about this story » NOW WATCH: Here's what happens when two hurricanes collide
Welcome to the weekend! The competition for young talent is fierce and it's no secret that...Welcome to the weekend! The competition for young talent is fierce and it's no secret that investment bankers are among America's highest-paid earners out of college. This week Business Insider got the details behind the base salaries and annual bonuses top investment banks and boutiques pay. Reed Alexander combed through data from online forum Wall Street Oasis to round up what the 10 bulge-bracket banks pay their first-year analysts. Read the full story to see which bank pays the most total compensation. From Goldman Sachs to JPMorgan, here's what you can make at all the bulge-bracket banks as a first-year IB analyst But it's not only the Goldmans of the world that attract top talent. Boutique investment banks also pay top dollar to stay competitive. Meghan Morris and Alex Nicoll dove into government data to shed light on what firms like Moelis, Lazard, and Evercore paid employees at different seniority levels. How much investment bankers get paid as they rise the ranks at firms like Moelis and Evercore, from analyst up to VP Whether it's poaching from investment-banking analyst programs or more seasoned practitioners finishing up an MBA, private-equity firms, hedge funds, and other buy-side investors duke it out to ensure they're landing top prospects to replenish their ranks and shore up their future generation of partners and portfolio managers. Reed, Alex Morrell, and Casey Sullivan tapped their sources at investment firms, business schools, and the world of recruiters to identify the top headhunters that private equity and hedge funds rely on to identify future Wall Street all-stars. THE GATEKEEPERS: 12 top headhunting firms to know if you want to land a career in private equity or hedge funds Read on for more big stories, including the drama at Blackstone's credit division, the hottest public debuts, and why American Express bought small businesses lender Kabbage. If you're not yet a subscriber to our finance newsletters, you can sign up here. Have a great weekend, Michelle (Meredith is on a break and will be back next week.) Inside the drama at Blackstone's $129 billion credit division, where pay changes, PR black eyes, and disapproval of its internal hedge fund preceded an exodus in distressed trading Blackstone's acquisition in 2008 of credit-investing platform GSO has been a massive success, with assets growing from $10 billion to nearly $130 billion today. But, as Casey Sullivan and Alex Morrell reported, the absorption of GSO wasn't entirely smooth, with two distinctly separate cultures that sometimes clashed — especially as it pertained to its distressed-investing unit. The distressed-credit group in particular featured a slew of all-star investors, but it also created PR black eyes for the firm and mixed-performance over the years. Many of the firm's top distressed traders and analysts left amid the turmoil. Sullivan and Morell also tracked the firm's 11 top distressed-investing alumni who joined shops like Ares and Angelo Gordon and are now helping them go bargain hunting during the downturn. The investment chief at $7 billion healthcare specialist Perceptive Advisors breaks down why the COVID-19 vaccine race will have many winners Longtime healthcare, pharmaceutical, and biotech investor Perceptive Advisors sees a future where a vaccine for the coronavirus is being mass-produced and distributed in the next 12 to 18 months. And Adam Stone — the CIO for the $7 billion manager — told Bradley Saacks that he believes many different companies will have a chance to make some serious money off of it. Blackstone has $46 billion of dry powder for commercial property deals. Its real estate head lays out why it's still betting big on logistics while the competition crowds the asset class. Blackstone, the world's largest corporate landlord, has $46 billion set aside for real estate deals, just as the pandemic commercial real estate shakeout begins. Alex Nicoll spoke to the firm's global co-head of real estate Ken Caplan about how the firm is thinking of investing its money in the post-lockdown landscape. Logistics, already the biggest part of Blackstone's portfolio, remains a major opportunity, even as others look to the already crowded asset class. The IPO market is on fire after a short-lived drought — here are the hottest public debuts to keep an eye on, and which banks are eyeing big fees for pulling them off. Airbnb confidently filed its paperwork for an IPO this week, giving its biggest indication yet that it plans to go through with an initial public offering this year. In this report, Meghan Morris broke down the eight companies that are poised for a public-markets exit, though how they do so – traditional IPO, direct listing, or special purpose acquisition vehicle (SPAC) – is often still up in the air. An alt-data firm says it's found a way to replace Robinhood trading data after a decision to shut if off left big investors scrambling. Here are 20 charts that show how it's tracking web traffic. Wall Street is eager to get data on Robinhood users' trading activity following the startup's decision to shut down access to the info. SimilarWeb, an alt-data provider that tracks web traffic for millions of websites, compared trading volume on individual US stocks with weekly visits to their respective pages on Robinhood.com. As Dan DeFrancesco and Dakin Campbell reported, its findings suggest traffic to Robinhood's website represents the app's actual order flow and can be used to better understand retail influence on the overall market's trading volumes. Amex is targeting SMBs even as the pandemic crushes business owners. An exec explains why acquiring Kabbage is a key part of that plan. American Express is acquiring Kabbage, the SoftBank-backed small-business lending fintech, in a bid to boost its small business customers. Shannen Balogh chatted to Anna Marrs, its president of global commercial services, about how it's building out its suite of products for businesses. Charles Schwab is taking on Betterment and Wealthfront by launching a free tool that helps you plan your retirement, and it shows how firms are aggressively competing to cut the cost of financial advice As Rebecca Ungarino reported, Charles Schwab launched a new digital tool that automates the financial planning process — a sign of the fierce competition among wealth managers offering low-cost advice. The new platform resembles approaches from robo-advisers Betterment and Wealthfront, which evaluate users' financial situations and create plans for them. On the move Fintech Plaid hired a former regulator as its new general counsel to help it work with banks that have become wary of giving the firm unlimited access to customers' accounts and data Business Insider Live Event Join us for a session on taking control of your financial future and learning how to develop an investment strategy that works for you by attending "How to Be a Smarter Investor Now" on Tuesday, September 15 at 12 p.m. ET. The event is part of Business Insider's Master Your Money Live Digital Bootcamp series, presented by Fidelity. Register here. Careers A day in the life of a Nasdaq exec whose job is to make sure the software systems that power over 120 markets stay up and running How lawyers can break into the $34.5 billion world of fintechs and land lucrative jobs at hot startups, from general counsel working at companies like Lemonade, Toast, and Stash Wealth Pain points around onboarding new clients and remote transactions are causing wealth firms to lose clients and talent. Here's how they can improve. Real estate A student housing developer is facing congressional scrutiny after it pressured colleges to bring kids back to campus in order to keep dorms full Struggling retailers are looking for relief on their rent. The CEO of a credit check company lays out the 6 steps landlords should take when judging commercial tenants' cases. Markets for retail and office space are under enormous pressure. A foreclosure in the works for a building on NYC's glitzy Fifth Avenue shopping corridor shows just how bad it's getting. Law More law firms are giving clients exclusive data that's not for sale to give them an edge. Here's how the 'you-just-whispered-something-in-my-ear approach' works. A legal-tech startup used by firms like Davis Polk is harnessing AI to analyze hundreds of police contracts in a bid to push for reform Meet the virtual law firm with Netflix-style subscription pricing that's looking to disrupt the US legal industry Join the conversation about this story » NOW WATCH: Why thoroughbred horse semen is the world's most expensive liquid