Interesting Reads in February
Passing along unique (in my opinion) articles that are in finance, tech, or of general interest to me.
1. Goldman has swapped traders for engineers
- 600 equity traders in 2000 -> 2 today in GSNY
- 200 computer engineers for automated trading
- avg comp for ST and research among BB — $500k
- 4 FX traders = 1 computer engineer
- M&A bankers average $700k
2. Now, they are coming for the GS Bankers
NEW YORK Technology whizzes who helped Goldman Sachs (GS.N) eliminate hundreds of trading jobs over the past few years…uk.reuters.com
- 75 programmers, called “strats”
- doubled since 2014
- Working on LBOs, equity underwritings, M&A in fin svs and RE
- AI firm, Kognetics, could automate 1/4 of banking routine
3. Will the payment (cloud) layer be abstracted away?
The checkbook (or rather the checking account) used to be the springboard for banks to continue, well, banking on their…a16z.com
- 25 minute video by Alex Rampell
- Banks and lenders have an opportunity to overcome the disintermediation they have faced recently.
- The method of payment may not be as significant if banks can incentivize customers with similar benefits.
WSJ is tightening up its paywall
The Wall Street Journal continues to tighten up its paywall as it strives to hit 3 million subscribers to the Journal…digiday.com
- Starts Monday — no longer able to copy and past headlines in Google and read a WSJ article without a subscription
- WSJ witnessed a meaningful jump when it A/B tested it on parts of the site.
- Video is still outside of the paywall due to the higher ad rates .
- Subscribers can still share via social media for non-subs to read for free.
How did Bank Street get its name?
Historical Echoes: Are There Any Banks on Bank Street? Amy Farber Liberty Street Economics, JANUARY 20, 2017 Bank…ritholtz.com
- Located 2.7 miles north of Wall Street and situated in Greenwich Village.
- In 1798, there was a yellow fever outbreak.
- Named after Bank of New York.
- It opened an office and several other followed after a 2nd outbreak in 1822.
- Bank of United States acquired a lot for $500 and later sold it for $30k in 1843.
I celebrated my 40th birthday this weekend. "How does it feel?" my friends have been asking me. They're mostly about to…thereformedbroker.com
Josh Brown continues to write some of the most relevant and relating material in the finance blogsphere. There are so many commonalities with this summary of his past ten years.
What a difference a decade can make.
Thanks for reading,