The 32-year-old Goldman Sachs VP reportedly risked career for $145k

If you were vice president at an investment bank with a brilliant career up front, would you risk it all for a fraction of your annual salary? Brijesh Goel says his name has been unfairly tarred, but the SEC is accusing him of insider trading.

Goel, who is now 37, worked for Goldman Sachs between the ages of 28 and 36. He finished as VP, a role that pays a salary of up to $275k in New York alone according to H1B visa data. Last year, Goel moved to Apollo Global Management as a principal in structured finance, and he probably made even more – Apollo paid his freshmen $550k in 2021.

Today, however, Goel is on indefinite leave from Apollo pending an investigation into the insider trading allegations. The SEC alleges that it passed information about potential mergers to an old friend who was a trader at Barclays Capital for two years, that the friend traded on this information and that they split their profits. The gains were small: the two men made a total of $292k, and that was mostly from a single trade; others have gotten them nothing at all or only $600. The two men played squash together and are accused of using code language such as “Have you booked the court?” to refer to their alleged nefarious activities.

A lawyer for Goel told the Financial Times he looks forward to proving his innocence: “Unfortunately, the government rushed to sue Brijesh over the apparent control of one person over something that supposedly happened years ago before Brijesh’s current job – without Brijesh the chance to talk to them, falsely mocking his name. .”

Regardless, after a year of high wages and bitter complaints about overtime that banks have had to give in, junior bankers may soon just have to suck it up. As capital market earnings show no sign of recovery and M&A earnings are better than expected, banking observers say the balance of power is shifting.

“Power has shifted from the employee to the employer,” Mike Mayo, a top banking analyst at Wells Fargo, told the Financial Times. “What happened in recent years to employees who said they were working too long and wanted extra benefits and that and that was an exception. . . that was a moment [that has] come and go.”

Calibrating cuts isn’t easy, however, Mayo added:Cut too deep and you’ll have to pay afterwards to get them back while you overtake. The other risk is that you don’t make the necessary moves and you’re stuck with an inflated overhead.”

In the meantime…

Junior bankers still want to work from home, and people who leave the Big Four for big banks come back because they don’t want to be in the office. “People don’t want to work like that anymore. We’ve had several people leave and come back to investment banks over the past 12 months. They said it was ridiculous how they had to work.” (Financial News)

Goldman Sachs bankers called their work overselling £5bn in bonds and loans to support the £10bn takeover of grocer Morrison’s “Project Magnum” by private equity firm Clayton, Dubilier & Rice, but it wasn’t very scintillating. Sixteen insurers working on the deal already have a £200m loss and there’s another £400m in losses when the debt is measured at market value. “It’s just very un-Goldman. They are usually ahead when the tide starts to turn.” (Financial times)

Drew Goudman, Deutsche Bank’s global head of investment banking coverage and advisory is stepping down after 23 years. Dealogic says Deutsche transaction costs have fallen 46% this year. (Financial news)

Drew Goldman joins the Abu Dhabi Investment Authority as Head of Real Estate Investments. (Bloomberg)

Moelis & Co establishes a new blockchain group under John Momtazee, the global head of media investment banking. “We like the timing. We think it feels less sincere to come in on good days and say, ‘Here we are, ready to help’ than when there’s a challenge. Any disruptive technology will have volatility.” (Bloomberg)

The Bank of Montreal’s wealth management division has hired 13 equity portfolio managers in Toronto about healthcare, technology, industry, finance and consumer stocks. (Bloomberg)

Julius Baer has made some major write-downs on his historic IT investments. (Inside Paradeplatz)

Julius Baer has implemented a hiring freeze for non-relationship manager positions. (Financial times)

Barclays starts buying back $17.6 billion in securities after accidentally selling too many of them. Redemptions will take place between August 1 and September 12. Barclays has already charged $651 million in relation to the case, and the costs are only set to rise. (Bloomberg)

Burnout comes from doing all the little chores you weren’t really hired to do. (WSJ)

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