Do Any Banks Still have Prop Desks?

Just wanted to start a discussion around bank prop desks and whether any parts have survived.

I've heard that some banks have moved parts of their prop desks into their treasury/liquidity/funding desks ie London Whale. Is this true across most of the BB's as a core function? or is it more adhoc? Did banks move ex-prop traders there?

I've also heard that some of the foreign banks are under different regulations so might still have desks outside of Volcker. (RBC had GAT, but I can't find any post 2014 articles. I've seen some people with the "Discretionary Capital Group" title on Linkedin, but nothing definitive).

If prop desks are 100% dead, what other desks offer the most similar experience (ie have greatest leeway on forming views and executing trades based on them)?

 
Best Response

I think there are some smaller prop books floating here and there, I believe there are some loopholes that still allows for some of these to exist, but there arent large prop teams that manage tons of capital anymore on the sell side.

Tbh the outright bans on prop/Volcker are just half the equation, because I think there will always be loopholes that you can work around, but just as big of an issue if not bigger is the capital requirements, banks just dont want to hold as much risk on their books these days even on the sellside flow books, and it has a very noticeable impact on liquidity and transaction costs.

 

Honestly the Volcker rule is so ambiguous that prop trading could never be banned directly from it. Bank will always be trading, but they will also be "hedging" risk that could also happen to be making profit. In other words, direct prop trading may be winding down now, but other types of trading such as flow trading will always exist. I also have a feeling prop trading will eventually come back

 

Id rerum sapiente reiciendis fuga rerum. Asperiores accusantium eveniet porro ipsa. Alias cupiditate veritatis praesentium voluptas.

Amet quia et praesentium consequuntur nam impedit aperiam. Provident laboriosam ullam saepe magni ut. Recusandae deleniti animi maiores quas.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”