32-year-old Goldman Sachs VP would have risked his career for $ 145,000

If you were a vice president at an investment bank with a brilliant career on the buying side ahead of you, would you risk everything for a fraction of your annual salary? Brijesh Goel says his name has been unfairly deleted, but the SEC is accusing him of insider trading.

Goel, now 37, worked for Goldman Sachs between the ages of 28 and 36. He ended up as Vice President, a role that pays a solo salary in New York up to $ 275k according to H1B visa data. Last year, Goel switched to Apollo Global Management as Dean in Structured Finance and he’s likely to have made even more: Apollo paid his first-year associates $ 550,000 in 2021.

Today, however, Goel is on indefinite leave from the Apollo pending an investigation into the allegations of insider trading. The SEC claims that for two years he passed information on potential mergers to an old friend who was a Barclays Capital trader, that the friend exchanged this information and that they split their winnings. The winnings were minimal: the two men earned $ 292k in total, and this was mostly from a single trade; others earned them nothing or only $ 600. The two men played squash together and are accused of using coded language such as “Have you booked the camp?” refer to their alleged nefarious activities.

A Goel lawyer told the Financial Times that he is looking forward to proving his innocence: “Unfortunately, the government was quick to blame Brijesh for a person’s apparent assertion about something that allegedly happened years ago before the Brijesh’s current job, without giving Brijesh a chance to talk to them, unfairly clipping his name. “

Separately, after a year of high pay and bitter complaints over the overwork that banks have been forced to indulge in, junior bankers may soon simply have to suck in. As revenues in capital markets show no signs of recovery and M&A revenues join the slide, longtime banking observers say the balance of power is shifting.

“The power has passed from employee to employer,” Mike Mayo, a leading banking analyst at Wells Fargo, told the Financial Times. “What has happened in the last couple of years with employees who said they worked too long and wanted extra perks and this and that, was an exception. . . that was a moment [that has] come and go “.

However, calibrating the cuts is not easy, Mayo added: “It cuts too deep and you have to pay later to get them back as you play fetch. The other risk is that you don’t make the necessary moves and get stuck with an overload. ”

Meanwhile…

Junior bankers still want to work from home, and people who leave the Big Four for the big banks are returning because they don’t want to be in the office. “People don’t want to work like that anymore. In the past 12 months, many people have left for investment banks and returned. They said it was ridiculous how they were expected to work. “(Financial News)

Goldman Sachs bankers called their job to sell £ 5 billion of bonds and loans to support private equity firm Clayton, Dubilier & Rice’s £ 10 billion acquisition of grocer Morrisons “Project Magnum”, but it wasn’t very bright. Sixteen underwriters working on the deal have already done a £ 200 million loss and there’s another one £ 400 million in losses when the debt is publicly traded. “It’s just very little Goldman. They are usually ahead when the tide starts to turn. (Financial Times)

Draw Goldman, Deutsche Bank’s global head of hedging and investment banking advice resigns after 23 years. Dealogic says Deutsche’s trading fees are down 46% this year. (Financial news)

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

Moelis & Co is creating a new blockchain group below John Momtazee, its global head of media investment banking. “We love the timing. We think that piling up on good days and saying, “Here we are, ready to help,” is less genuine than when there is a challenge. Any disruptive technology will have volatility. “(Bloomberg)

Bank of Montreal’s asset management arm has hired 13 equity portfolio managers in Toronto through healthcare, technology, industry, finance and consumer stocks. (Bloomberg)

Julius Baer made some big write-offs on his historic IT investments. (Inside Paradeplatz)

Julius Baer introduced a hiring freeze for non-relationship manager positions. (Financial Times)

Barclays will begin to buy back $ 17.6 billion worth of stocks after accidentally selling too many. The repurchases will take place between 1st August and 12th September. Barclays has already taken on $ 651 million related to the matter and the costs are only expected to increase. (Bloomberg)

Burnout comes from doing all the little jobs you haven’t really been hired for. (WSJ)

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