![]() However, if Deutsche Bank's macro revenues are declining, the same thing is probably occurring at macro-oriented banks like Barclays and BNP Paribas, and even at hedge funds with an historic macro focus (like Eisler, maybe). Chief Financial Officer James von Moltke said yesterday that the bank's macro desks are seeing a " trail-off" and that this is contributing to an expected 15%-20% decline in second quarter fixed income revenues compared to the previous year. Now, though, Deutsche's macro desk - which includes assorted traders added from the likes of Goldman Sachs and Morgan Stanley - is sputtering. They more than doubled in the third quarter of 2022. Separately, Deutsche Bank's macro traders' good run is at an end.įor a bit, it seemed that the revamped DB macro desk was on an unstoppable updraft of exponentially increasing revenues. Its managing directors have good reason to heed the warnings: their numbers are already being culled again in Asia, and there is talk of further headcount cuts later this year. There comes a point, though, at which bleeding costs bleeds morale, and this is the awkward path that Goldman Sachs must tread. Taxis home from the office can be pushed to midnight instead of 10pm. Meal stipends for working late can be cut. Five years ago, Deutsche Bank caused a furore by depriving its bankers of free fruit. ![]() There is always more that could be done, but it usually requires the squeeze to move down the hierarchy. Subscriptions that could previously be taken out almost at whim also now require prior justification. In the past, MDs could travel to meet a single client and expense a fancy meal now travel must be justified by meeting multiple clients and expenses must be signed off by senior staff. The squeeze applies to everything from client travel to meals out and subscriptions. New budget totals are being imposed the MDs will be held responsible for meeting them. Reuters reports that Goldman MDs have been invited to meetings at which they have been informed that it is their duty to squeeze costs even more than before. And if you are not worrying about your expenses, the firm will make sure you do. When you're not worrying about your bonus, or your job, you should now be worrying about your expenses. Being a managing director at Goldman Sachs is not as good as it used to be.
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