h4(%2%û)3û!ûMINIMUMûSIZEûYOUûCANûBEûIFûYOUûWANTûTOûBEû
RELEVANT vû#REDITû3UISSEû#%/û4IDJANEû4HIAMûTOLDûANûINVESTORû
CONFERENCEûLASTûWEEKû!NDûHEûSHOULDûKNOW
(EûCERTAINLYûMADEûAûBIGûIMPRESSIONûONû(ENRYû%NGELHARDT ûTHEû
CO
FOUNDERûOFû5+ûINSURERû!DMIRALû'ROUP ûWHENûTHEûPAIRûMETû
DOINGûTHEIRû-"!SûATû)NSEADûh7EûUSEDûTOûPLAYûBASKETBALLûTOGETHERû
(ESûAûTALLûGUY ûHEûWASûPRETTYûGOOD vû%NGELHARDTûONCEûSAID
"UTû4HIAMûWASNTûREFERRINGûTOûTHEûOPTIMUMûHEIGHTûFORû
BANKû#%/SûWHICHûACCORDINGûTOûAûûSTUDYûISûSIXûFOOT û
BUTûTOûHISûDECISIONûTOûRESISTûFURTHERûJOBûCUTSûAFTERûHEûHASû
SPENTûTHEûLASTûTHREEûYEARSûSHRINKINGû#REDITû3UISSEûTOû-RSû
0EPPERPOTûPROPORTIONS
!RCH
RIVALû5"3 ûWHICHûCOINCIDENTALLYûALSOûSUFFERSûFROMû
hSMALLûBANKûSYNDROMEv ûISûALSOûHAVINGûSECONDûTHOUGHTSû
ABOUTûWIELDINGûTHEûAXEûAFTERûITSû#&/ûSAIDûTHATûJOBûCUTSûWILLû
JUSTûADDûCOSTSûINûTERMSûOFûSEVERANCEûATûAûTIMEûWHENûITûISû
TRYINGûTOûREINûINûEXPENSES
5"3û#%/û3ERGIOû%RMOTTIûWENTûAûSTEPûFURTHERûANDûDEFENDEDû
THEûINVESTMENTûBANKSûBOSSESûINûTHEûFACEûOFûDIREûTRADINGû
CONDITIONSûh)ûTHINKû2OBû+AROFSKYûANDû0IEROû.OVELLIûAREû
DOINGûAûFANTASTICûJOB vûHEûSAIDûv0EOPLEûUNDERSTANDûTHATû;THEû
RECENTûPERFORMANCE=ûHASûNOTHINGûTOûDOûWITHûMANAGEMENTû
CHANGESû)TûHASûTOûDOûWITHûTHEûENVIRONMENTv
)TSûNOTûKNOWNûWHETHERû+AROFSKYûANDû.OVELLIûAREûFOOTBALLû
FANS ûBUTûSOMEONEûNEEDSûTOûTELLûTHEMûWHATûUSUALLYûHAPPENSû
AFTERûMANAGERSûRECEIVEûTHEûDREADEDûVOTEûOFûCONlDENCE
7)4(û!û.%7ûMANAGEMENTûTEAMûINûPLACEûINûTHEû#
SUITE û(3"#û
APPEARSûTOûHAVEûlNALLYûBROKENûITSûTIESûWITHû'OLDMANû3ACHS
4HEû53ûBANKûWASû(3"#SûCORPORATEûBROKERûFORûYEARSûANDû
FORMERû#%/û3TUARTû'ULLIVERûWASûSOûIMPRESSEDûBYûTHEûQUALITYû
OFûTHEûADVICEûHEûRECEIVEDûTHATûHEûHIREDûFORMERû'OLDMANû
PARTNERû-ATTHEWû7ESTERMANûASûHEADûOFûGLOBALûBANKING
7ESTERMANûCERTAINLYûMADEûHISûMARKûATû(3"# ûBUTûLEFTû
AHEADûOFûTHEûAPPOINTMENTûOFû(3"#SûNEWû#%/û*OHNû&LINTû
FOLLOWINGûAûTURBULENTûTENURE
&LINTSûARRIVALûTHENûUSHEREDûINûAûMOREûTOUCHY
FEELYûSTYLEû
ANDûHEûHASûVOWEDûTOûTURNû(3"#ûINTOûTHEûhHEALTHIESTûHUMANû
SYSTEMvû"ELLWETHERûHASûNOûIDEAûWHATûTHOSEûWORDSûMEANû
INûTHATûCOMBINATION ûBUTûISûPRETTYûSUREûTHEûPHRASEûDIDûNOTû
DESCRIBEû7ESTERMANûDURINGûHISûTIMEûATû(3"#
.OW ûNEWû#&/û%WENû3TEVENSONûAPPEARSûSETûTOûREPLACEû
'OLDMANûWITHû-ORGANû3TANLEYûASû(3#"SûCORPORATEûBROKERû
3TEVENSONûWORKEDûWITHû-ORGANû3TANLEYûASûCORPORATEûBROKERû
INûHISûPREVIOUSûJOBûASû#&/ûOFû2OYALû"ANKûOFû3COTLAND ûSOûTHEYû
MUSTûHAVEûDONEûSOMETHINGûRIGHTû!NDûINûTHEûSPIRITûOFûTHEû
HEALTHYûHUMANûSYSTEM û-ORGANû3TANLEYûWILLûDElNITELYûNOTû
BEûCLAIMINGûBRAGGINGûRIGHTSûOVERûITSûARCH
RIVAL7(%.û9/5û4().+ûOFû,IBORûMANIPULATION ûYOUûTHINKûOFûSTUPIDû
NICKNAMESûANDûDODGYûDEALSûDONEûINûTHEûBACK
ROOMSûOFû#ITYû
PUBSû3OûITûWASûENTIRELYûAPPROPRIATEûTHATû$AVEû2AMSDEN ûTHEû
DEPUTYûGOVERNORûFORûMARKETSûANDûBANKINGûATûTHEû"ANKûOFû
%NGLAND ûSOUNDEDûLIKEûAûPUBûLANDLORDûWHENûHEûDELIVEREDûAû
KEYNOTEûSPEECHûENTITLEDûh,ASTûORDERSûCALLINGûTIMEûONû,IBORv
-UCHûTOû"ELLWETHERSûDISAPPOINTMENT ûHEûCHOSEûNOTûTOû
EXTENDûTHEûMETAPHORûFURTHERûANDûRESISTEDûTHEûTEMPTATIONûTOû
ENDûHISûADDRESSûWITHûTHEûLINEûhHAVENTûYOUûALLûGOTûHOMESûTOû
GOûTO v
)NSTEAD ûHEûWENTûONûTOûDELIVERûAûSTERNûWARNINGûTOûBANKSû
THATûTHEYûMUSTûACTûNOWûTOûPREPAREûFORûTHEûDEMISEûOFû,IBOR
"UTûDEEPûDOWNûHEûWILLûKNOWûTHATûLIKEûANYûSENSIBLEû
DRINKERûINûAûPUBûASûLASTûORDERSûISûCALLED ûBANKSûWILLûSTALLûFORû
TIME ûANDûJUSTûASûTHEûDEADLINEûISûABOUTûTOûPASS ûORDERûTHEû
BENCHMARKûEQUIVALENTûOFûTWOûPINTSûEACHûBellwether: n. From the practice of placing a bell around the
neck of a castrated ram so that it might lead its flock
"ELLWETHER
7HOSûMOVINGûWHEREx
MITSUBISHI UFJ
FINANCIAL GROUP
has hired Tre vor
Neilson from
Santander to head its
technology, media and
telecoms team in
EMEA. Neilson will be
based in London and
report to Holly Villiers,
head of UK, Ireland
and the Nordics.
Neilson will be the
senior relationship
manager for TMT
clients in the UK and
Ireland. He spent five
years at Santander,
most recently as head
of TMT coverage
across the UK and
Nordics, and previously
worked at RBS for nine
years and at ABN
AMRO and HSBC. JP MORGAN has
hired David Xu from
UBS to head its
equities team in China.
Xu, who held a number
of senior positions at
UBS including head of
China equities, will be
based in Shanghai and
report to Ryan
Holsheimer, head of
cash equity sales and
trading for Asia-Pacific. JP Morgan has
also promoted Nick Lai
to head of China equity
research. He will also
be based in Shanghai.
In March, JP Morgan
received approval to
set up a majority-
owned securities joint
venture in China. Emerging markets
credit trader Matthew
Dunker will join
NOMURA next month,
according to sources.
Dunker joined
Standard Chartered in
early 2017 and was
head of credit trading
for CEEMEA, but left
last year. He previously
spent 13 years at JP
Morgan. Jeff Tannenbaum is to
take on additional
oversight for BANK OF
AMERICA MERRILL
LYNCH’s leveraged
finance business for
EMEA. Tannenbaum,
who leads the US bank’s
EMEA investment-grade
capital markets
business, will work with
the existing origination
and syndicate teams.