2/12/13

I have offers from both to join as an Analyst. I understand that Barclays is a stronger shop but that Citi also has extremely strong groups. Given the media situation about Barclays at the moment and speculation that its investment banking arm might be spun off, and also that Citi has incurred many one-time charges and is (supposedly) on the rise, I wanted to know people's thoughts.

Comments (13)

2/12/13

Barclays' IBD shop is not going to be spun-off. Only areas of concern (IBD-related) are its Asia operations - US will remain intact. You can't go wrong with either - and both had a change in C-suites this past year.
Full disclosure: not at Barc. Have many friends at both places.

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2/12/13

personally, I'd take Citi. Know a bunch of guys there and they're all great.

But my understanding is that Barclays does its M&A within its coverage groups (like GS), so if you are looking to get solid M&A exposure (and the Citi offer isn't M&A), that's something to keep in mind.

"Success means having the courage, the determination, and the will to become the person you believe you were meant to be"

In reply to nontargetPSD92
2/12/13

nontargetPSD92:
personally, I'd take Citi. Know a bunch of guys there and they're all great.

But my understanding is that Barclays does its M&A within its coverage groups (like GS), so if you are looking to get solid M&A exposure (and the Citi offer isn't M&A), that's something to keep in mind.

Talked to someone from Citi and my understanding was that much of the M&A work was done in-house, under supervision of a more senior M&A banker. That seems to be the new standard nowadays, or am I mistaken? Haven't started my SA yet, but going on what I've been told from others on the Street.

In reply to DiggsRTC
2/12/13

as with most things on this board, depends on the group

"Success means having the courage, the determination, and the will to become the person you believe you were meant to be"

2/12/13

Doesn't sound that good even if it should not affect US too much.
Anyway, I'd choose considering the groups.

Feb. 12 (Bloomberg) -- Barclays Plc, the first U.K. lender to report results for 2012, will eliminate 3,700 jobs to reduce annual costs by 1.7 billion pounds ($2.6 billion) after posting its first full-year loss in more than two decades.

The net loss of 1.04 billion pounds compares with a profit of 3 billion pounds in 2011, the London-based bank said in a statement today. Analysts had estimated a loss of 307 million pounds, according to the median estimate of nine surveyed by Bloomberg. The bank set aside an additional 1 billion pounds in the fourth quarter to compensate clients wrongly sold insurance on loan repayments and interest-rate swaps.

Antony Jenkins, who took over as chief executive officer in August, is seeking a return to profit and avoid repeating the regulatory missteps that led to the resignation of his predecessor, Robert Diamond. Jenkins stopped short of setting a profitability target, saying only he will target a return on equity that exceeds the lender's 11.5 percent cost of equity.

"Our plan is built on a rigorous review of 75 distinct business units to determine not only their ability to generate an appropriate and sustainable return on equity, but also their strategic attractiveness, including their impact on Barclays reputation," Jenkins, 51, said in today's statement. "We expect to make good progress towards our financial commitments by 2014 and deliver them fully during 2015."

Cost Reductions

Barclays plans to reduce costs to 16.5 billion pounds by 2015 to reduce them as a proportion of income to about 55 percent compared with 64 percent in 2012.

The lender will eliminate 3,700 jobs this year, with 1,800 coming from its investment bank and 1,900 in European consumer and business banking. About 1,600 have already been cut at the investment bank, Finance Director Chris Lucas told reporters on a conference call today. The firm employs about 24,000 people at its investment-banking unit, and about 140,000 worldwide.

The bank said it will focus on the U.K., U.S. and Africa and will direct its European consumer bank, which lost 239 million pounds last year, on what it called so-called mass- affluent market. The firm will shut its structured capital markets unit at its investment bank. It will take a 500 million- pound restructuring charge in the first quarter.

I'm grateful that I have two middle fingers, I only wish I had more.

2/12/13

As an analyst, this shouldn't be a concern. Agree with above poster - I believe industry groups are split into coverage and M&A, and you can choose to specialize in either at the analyst level. Certainly helps with placement afterwards. Also have strong sponsors and excl. sales (sell-side M&A) teams.

In reply to bankbanker101
2/12/13

bankbanker101:
As an analyst, this shouldn't be a concern. Agree with above poster - I believe industry groups are split into coverage and M&A, and you can choose to specialize in either at the analyst level. Certainly helps with placement afterwards. Also have strong sponsors and excl. sales (sell-side M&A) teams.

It does not affect you in terms of job security but can't it affect the execution experience you may have?
I mean, if Barclays is going to lose something on the financing side, can't it affect its ability to originate new business and be involved in capital intensive transactions? What about cross-border M&A activity (esp. with Asia and South Europe)?

I'm grateful that I have two middle fingers, I only wish I had more.

In reply to cruel3a
2/12/13

cruel3a:
bankbanker101:
As an analyst, this shouldn't be a concern. Agree with above poster - I believe industry groups are split into coverage and M&A, and you can choose to specialize in either at the analyst level. Certainly helps with placement afterwards. Also have strong sponsors and excl. sales (sell-side M&A) teams.

It does not affect you in terms of job security but can't it affect the execution experience you may have?
I mean, if Barclays is going to lose something on the financing side, can't it affect its ability to originate new business and be involved in capital intensive transactions? What about cross-border M&A activity (esp. with Asia and South Europe)?

This is a very astute point, but there are two arguments against this:
1. financing M&A didn't stop even after the LIBOR scandal (Dell is a clear example): Jenkins is aware that the IBD arm of Barc (at least the NY arm) is quite strong so he's not going to screw around with this. Proof is if you look at their deal volume for US vs. Worldwide, the US is a very large chunk of their total M&A volume.

2. Think I indirectly answered cross M&A using the above point. Cross-border (only international) was never really Barc's strong-suit. If it's cross-border involving a US target, then it may just be handled by US/UK offices.

Hope that helps.

In reply to DiggsRTC
2/12/13

DiggsRTC:
nontargetPSD92:
personally, I'd take Citi. Know a bunch of guys there and they're all great.

But my understanding is that Barclays does its M&A within its coverage groups (like GS), so if you are looking to get solid M&A exposure (and the Citi offer isn't M&A), that's something to keep in mind.

Talked to someone from Citi and my understanding was that much of the M&A work was done in-house, under supervision of a more senior M&A banker. That seems to be the new standard nowadays, or am I mistaken? Haven't started my SA yet, but going on what I've been told from others on the Street.

I've spoken with a couple of Citi coverage groups and was relayed this same information. The coverage groups generally only bring in a senior M&A or LevFin person to assist on deals. But, the majority of the deal is run out of the coverage group.

4/2/13

Choose Citi, you won't regret it.

4/2/13
4/2/13

Pick the group where you like the people the best. You can get to where you want to be from either bank. Other arguments simply service preconceived biases.

Dirk Dirkenson:
Shut up already. Your mindless, reflexive responses to any critical thought on this are tedious. You're also probably a woman, given the name and "xoxo" signoff, so maybe the lack of judgment is to be expected.
4/3/13

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