If you want a job in finance today, follow the blood trail. The most aggressive hiring is happening in business units charged with cleaning up other people’s mistakes, or making sure they don’t happen again.
Look at banks in the U.K., which created at least 20,000 new jobs last year to deal with claims over mis-sold payment protection insurance (PPI) and interest rate swaps, according to a new report from recruitment firm Manpower. The job gains generated by the scandals drove financial services to be the best performing sector in the study, despite the fact that front office staffers are getting let go each day.
“These scandals have spawned a new industry to deal with the fallout,” said ManpowerGroup U.K. Managing Director Mark Cahill.
The job gains are expected to continue through 2013, with firms like Barclays and Lloyds putting aside millions to deal with PPI claims, according to Cahill.
Recent scandals have also inspired hiring in risk and compliance on both sides of the pond as firms attempt to mitigate against future black eyes. Five of the top six most talent-starved positions are in risk and compliance, according to a recent study of our database. And the pay is pretty good. A senior compliance professional working in an investment bank in New York can expect to make between $250,000 and $525,000.
Jobs in compliance and risk are likely much safer than those tasked with handling the immediate fallout of the scandals themselves. They’re real jobs, but they likely aren’t sustainable.
Bold and Unrelenting (LA Times)
Mary Jo White, President Obama’s nominee for the head of the Securities and Exchange Commission, will take a tough stance on Wall Street if confirmed, telling senators that she will be “bold and unrelenting.” Wrongdoers “will be aggressively and successfully called to account by the SEC,” she said.
They’re Still Commodities (Bloomberg)
Former Citigroup oil trader Andrew Hall, who made headlines for receiving $100 million in compensation the same year Citigroup received a federal bailout, is putting his money to work in Vermont. Hall bought a farm that sells handmade lavender soap and grass- fed Angus beef.