JPM Coronavirus Conduct WSJ Article
"An employee who wasn’t feeling well came to the office. JPMorgan traded more shares that Monday than any day in the bank’s history. The sick employee turned out to have Covid-19, and over the past three weeks, about 20 employees on a single floor at the bank’s headquarters have tested positive for the virus, with another 65 quarantined as a result.""Traders and salespeople said they feel pressure to come in. Managers, many of whom have stayed in the office themselves, have reminded staff that their compensation may be tied to their performance in recent weeks."
"Employees questioned why it had taken several days to spread the word. The bank followed up with another memo that weekend to the whole building, confirming two cases. People who worked on the same floor as a sick colleague would be informed, the memo said, but should continue to report to work."
"All the while, global markets were haywire. That Thursday, March 12, the S&P 500 posted one of its biggest one-day drops in history. Friday brought one of its largest-ever gains. JPMorgan’s trading volume was hitting records. A group focused on volatility trading made about $1.5 billion in revenue as of late March, employees said."
"Custodial staff installed hand-sanitizer dispensers on the trading floors. Several employees who asked to work from home said they were told that not enough remote computer equipment had arrived yet. Some broke into tears when told they were expected to report in-person, employees said.
The bank’s human-resources department put together a document outlining when employees could return to work. Those who tested positive were told they could return to the office one week afterward, so long as symptoms had subsided, according to a copy of the document reviewed by The Wall Street Journal. The policy matched the recommendations of the Centers for Disease Control and Prevention.
“A persistent cough alone does not mean you must continue to self-isolate,” the document said."
"But the trading floor has remained open, and some managers continued to press staff to come in, according to employees.
On Thursday, Mr. Sippel, the bank’s global head of equities, said JPMorgan’s business would suffer if too many employees called out. JPMorgan’s rivals were lagging, he said, presenting an opportunity for the bank to win business."
Source: https://www.wsj.com/articles/anatomy-of-an-outbre…
What do those in S&T think about this? JPM seems very clearly in the wrong but what would happen if 90% of JPM traders let alone 90% of S&T worked from home? Also, 1.5 billion already made on one vol desk? Perhaps they are thinking that they can shore up a lot of the losses in other areas of the bank. I guess they need to figure out how to outfit everyone essential with the necessary infrastructure in their homes. Definitely seems like a difficult issue. Also, what do those in S&T think about the future of the industry with the economic effects of the outbreak? Thanks and stay healthy out there monkeys!
There are some savages out there at JPM haha- classic wall street firm. Not a great look, but then again when have the best banks really been a safe place to work?
There's a difference...
not really man, it's the same thing as the staffer at Moelis sending out an email to analysts at 3AM... Wall St is a tough place, and given JPMs importance to the US economic system, they have to come in to work- the markets would collapse otherwise
savage
There's a reason they're at the top, fellas
They'll certainly claw back a lot of the marginal revenue in lawsuits, so it was actually a pretty stupid decision all things considered.
You're high if you think there will be lawsuits from this...
1.5billion PnL in a single month... fucking absolutely insane...
yeah, and the traders get paid on that... I’ll put a bet on the fact that there probably were a good number of them who were plenty happy to take that risk and probably hit their annual numbers in a week on the desk... I probably would too
Sadly it’s not as simple as that as I’m sure you are aware. Internal politics will get in the way as usual and the firm will find a way to screw the traders come bonus time... something along the lines of “lucky to still have a job” or maybe the classic verbal promise that “we will make It up to you in the next few years bonuses”, even better the old “if you’re unhappy with your bonus feel free to leave to the competitor” That said i’m sure they won’t be hurting
Nice to see the WSJ highlighting these stories of front line employees and the difficult working conditions they face. Often these workers have low base wages, and limited abilities to find other work (non-competes). Then factor in it is a shrinking industry, skills are not transferable, and money could be tight.
The end result is this tragic situation: JPM S&T workers forced to come in with C19, to sit next to people with C19, while the boss comfortably recovers from an emergency medical procedure in safety.
Hard to see this not having an impact on recruiting for people that have the option to do tech.
Doesn't get much more classic than a consultant with a "traders care too much about money" take.
You got me Doctor! I’m just DYING to get back into S&T.
This is pretty messed honestly. I do think the fall out of this will happen much later aka which banks did well for their employees vs. which did not. It's a pretty bad look for them.
I work for a top competitor (GS, Citi, MS, etc.) and was still going in up until a week or two ago by choice. As it got worse, the floor really started to empty out - there are probably now only a handful of people left on the floor I would imagine if any at all. Even when I was still there, I was probably one of 3-4 people in my row so "social distancing" was being adhered to. Basically people who could work in other locations or from home did just so as the firm got things together.
My firm was very good about it. They actually sent us all packages with new screens and PCs to WFH. For the most part, it's really been business as usual WFH wise. My job is very speed sensitive as well. I can still go in if I want to, but really don't see the need to anymore.
I think one positive about this is that the work culture is going to change drastically for the industry - WFH will become a real possibility going forward as well as other efficiencies being pushed forward (most likely job cuts as need less people as usual...
To be fair, most of the money was probably made just before things really got bad in NYC. I can assure you it's not just JPM lol. Not like anyone is going to get paid either considering the rest of the bank will be making 0 revenue throughout this. Having said that, markets are starting to quiet down again as investors have cut risk or done what they need to do.
works at Citi
Haha maybe :)
Can always DM me if want more info on industry, insights, info, etc. This website really helped me back in the day. Would like to do my part now to contribute.
Knew it was Citi when I saw "Citi" and "top competitor" in the same sentence
lol Citi is definitely top 3 in S&T way better than MS
I work for the same list of competitors you mention, who knows, we might work for the same one :).
You made a good post and I agree that the nature of work will be drastically different now going forward. My BB is now as WFH as it's ever been and theres no way that the cost/time savings will go unnoticed by the C-level execs. It would be completely insanity - a maybe just downright impossible - to just call everyone back in once this is all done.
Virtually all work setups can be replicated in most homes and as long as people show productivity, the workplace will never be the same ever again.
Haha totally agree. Everyone I know has been shocked how well it has worked out, myself included...
Talking to friends and from personal experience it seems European banks in NYC are the only humane operations as they have sent everyone home for the most part. Even got a buddy who is head of trading that got his office setup replicated at home and provided with updated internet connection which I found funny when JP says they don’t have enough monitors to give out. I was given a stipend to purchase all my equipment myself.
Yeah - I basically have my work set up at home now. I find it hard to believe they were not able to source monitors as I was able to get my order ready within a week that was requested and sent next day air.
Yeah it’s not that difficult at all. but you have morons like they guy below stating he prefers traders that want to make money rather than cry.
Honestly they deserved to be fired. Their traders. Not civilians. But im old school and prefer my traders to want to make money and have balls and not cry.
Traders not civilians lmao
You are a moron clearly. Traders have family and to go home and infect a family member who may not be able to fight off the infection is something you would live with for the rest of your life. morons like you is what is wrong with society because you think balls is standing in the line of fire rather than being strategic and finding cover.
I have a friend who made generational money in this shit while infected with corona. Pussification of America.
“Traders not civilians!” LMFAO Thank you for your service bro!!!!
Hey bud. Sorry I missed this. You are welcome. I did my part to make sure people who need capital were able to find someone to take risks they no longer could take themselves. I know it’s a small contribution but some small business owner was able to trade with me and turn it into cash allowing him to make payroll that week.
In times of corona we must all do our part. I am glad I was able to contribute.
At my firm (big tech), work from home has been mandatory across all offices for 3 weeks now. Many people do it 1 or 2 days a week anyway, although I usually go every day. Not sure how my old quant fund would handle this, where you had to be in the office to do anything and the systems were deliberately set up to be not accessible remotely. Even if they wanted to, I doubt they could set up the infrastructure so quickly.
It's worth pointing out that even for the firms that are proactive about this, the vast majority are not doing it out of any concern for employees. They are afraid of being sued by employees who get sick, and are going by advice from their legal counsel.
I'm sorry, Mr. Sippel, if one of your employees dies, you will feel very badly about it forever. Be selfish, Sir - think about your guilt, the sleepless nights.
Death is permanent. The families impacted - permanent. Maybe a couple of young children will lose their parent. Or have a parent with some form of permanent lung damage. This is not 9/11, looking to potentially pull any humans out of a steaming pile, risking one's health for such.
An opportunity to win business is not a good equivalent to risking lives.
Quotes like his are what make finance professionals look greedy, selfish, repulsive. It's bad for the whole industry. It may be the quote that defines your career - imagine that?
Agreed. JPM will wear this stain on their reputation forever.
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