Wall Street Hiring Again; Other Sectors Should Follow
Bank of America, JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley all increased their headcount in the first quarter, paying 30% to 40% more than what employees are expected to make.
Bloomberg is reporting that Wall Street firms are adding jobs for the first time in two years. Investment banks are rebuilding businesses that were cut during the financial crisis and are even offering guaranteed payouts to lure top bankers.
Big banks such as Citigroup (C) and Morgan Stanley (MS) are trying to replenish their ranks while companies like Nomura and Jefferies (JEF) are luring top talents to take on the larger banks. The New York State Department of Labor says that 6,800 finance jobs were added in New York City from the end of February through May. This was the largest three-month increase since 2008.
Bank of America (BAC), JPMorgan (JPM), Goldman Sachs (GS), Citigroup, and Morgan Stanley all increased their total headcount in the first quarter of 2010. According to Bloomberg, these banks are paying 30% to 40% more than what employees are expected to make. Because of strong demand for top talent, investment bankers and traders are getting generous compensation packages that include guaranteed bonuses. The two fastest growing areas are equity derivatives and commodities trading. These firms are also adding private bankers who give investment advice to wealthy clients.
There's no way around it, this is bullish news. Wall Street doesn't go on a hiring binge if it sees a serious double-dip recession coming. Over the next six months, as fears over a European-led debt slowdown start to subside, expect to see other industries following Wall Street's lead.
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