The US banks may further extend their distance from Europeans as JPMorgan CEO Jamie Dimon, and Goldman Sachs CEO David Solomon hope to bring New York and London employees back to work at the latest this summer. On the other hand, Barclays, Deutsche Bank, and HSBC are laid back. The US bank bunkers have more time to meet with customers, increasing their market share.
Dimon admits that working from home is unsuitable for bunkers who want to work “aggressively and boldly.” JP Morgan plans to gradually bring employees back to the office in Manhattan, New York, and Canary Wharf, London, starting this summer, perhaps partly because of this. The maximum number of commuters is 50% of the capacity of the office. Goldman’s Solomon showed a similar schedule in the United States and Britain, saying telecommuting was an “exceptional measure.”
In response, Barclays and HSBC have not yet given instructions on the issue, and Deutsche Bank’s US investment banking division is expected to return to work in September. As a background, it is possible that European banks, which have low corporate valuations and high costs, are more willing to accept telecommuting because they will lead to cost reductions.
HSBC CEO Noel Quinn acknowledges that the bank could eventually reduce office floor space by 40%. Having 7,000 people working in an office building is almost gone, as per Jes Staley, CEO of Barclays, last year. Recently, however, he has emphasized the advantages of working in the office from the perspective of cooperation between employees and corporate culture.
Europeans may be reminded that cost savings come at a price. Bankers working in mergers and acquisitions and capital markets divisions did make a brilliant profit last year by winning deals while in the kitchen. But that was when everyone was fighting on the same ring. JP Morgan and Goldman employees may be in an advantageous position to return to work in the future.
Colleagues will be able to exchange ideas and gossip quickly, and more hands-on meetings with customers will help build trust.
The difference between Europe and the United States may be slight. But JP Morgan and Goldman are already gaining momentum. According to Citigroup data, the combined share of the two companies in global M & A fees has increased from 18% five years ago to 19% now. On the other hand, the total share of Barclays, Deutsche Bank, and HSBC has dropped from 7% to 5%. This gap could widen further if the US pushes even a little stronger.
JP Morgan is expected to resume “constant” office work for all UK employees starting June 21st. The number of employees is always limited to 50% of the capacity of the office.
Reuters reported on May 11. In April, the bank was preparing to return all US employees to work on a rotation basis from July. It was revealed in an internal memo confirmed by Reuters. JP Morgan’s CEO Dimon said on May 4 that working from home is not suitable for everyone, especially for those who want to work “aggressively and boldly.” In May, Goldman Sachs called on US employees to return to work from June 14th and UK employees from June 21st.