Hi. I’m Aaron Weinman. The speed at which technology is changing every Wall Streeter’s job is staggering.
Data hoardings have allowed companies from banks to withhold funds to exchange, process and store data. But knowing when to use that information and packaging it in a way that works for employees and customers is a big challenge.
To meet the challenge, some prominent firms such as Goldman Sachs and Morgan Stanley are piling billions of dollars into high-priority technology projects.
It’s a really exciting time for technology on Wall Street, embracing cloud and quantum computing. The growth of third-party software services like M&A Tracking DataSite has simplified the entire deal process, and new initiatives like Versana — a technology platform to support a unified credit market — are moving into the next generation of once-archaic industries dependent on endless spreadsheets. Level.
Let’s see.
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1. Harnessing data is one of the top tech projects in banks, hedge funds and asset managers. Other areas of focus include quantum computing, augmented reality and system communication.
Another hot topic is the cloud. Wall Street firms are focusing their efforts on cloud technology, marrying tech giants like Amazon’s AWS with their own internal analytics and research tools.
New technologies – like the aforementioned quantum computing or virtual reality – are gaining more attention as financial services companies seek to stay ahead of their peers by adopting new technology.
JPMorgan, for example, is playing on quantum-computing technology to run algorithms and perform calculations at fluid speeds. Quantum computing uses mechanics known as qubits. Classical computing bits can only store ones or zeros, but qubits can store multiple values at once.
To help make sense of this tech gobbledygook, insiders Bianca Chan and Carter Johnson spoke with 10 of Wall Street’s top companies about their biggest and most ambitious tech projects.
Read the full story here.
And ICYMI – Insider has assembled nearly 50 pitch decks that have helped fintechs disrupt the trading, investing and banking landscape.
In other news:
Ken Griffin shares his career advice with a group of 150 interns.
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2. Ken Griffin’s Citadel outperforms other multi-strategy hedge funds. The firm’s Wellington fund was up 3.7 percent at the end of August, and is now up 26 percent year-to-date. Performance against rivals such as Millennium, DE Shaw and Balyasny lagged behind.
3. Justice Greg Costa overruled the conservative Fifth Circuit Court of Appeals. Joining the law firm Gibson Dunn. Costa’s departure was a surprise, and comes after Gibson Dunn recently lost high-powered striker Randy Mastro.
4. Tech-related initial public offerings have driven capital markets to record highs over the past two years, but activity has slowed as investors shun unprofitable companies. Several bankers spoke with Insider about how the next batch of IPOs will stand out, and here are three tech companies they believe could end the 2022 IPO streak.
5. US companies such as Walmart and McDonald’s led the biggest day for the corporate bond market in 12 months, according to Bloomberg. On Tuesday, 19 companies started deals to sell bonds, with screens expected to be worth $30 to $40 billion. Borrowing costs are rising, but companies want to lock in deals before the next inflation data comes out.
6. Digital World Acquisitions Corp., which agreed to merge with Donald Trump’s social media company, did not get an extension to complete the deal. At stake is a $1.3 billion cash injection from former President Trump’s Truth social app from its SPAC sponsor, Reuters reports. On Tuesday, DWAC said in a filing that if shareholders do not approve a one-year extension, the sponsor will put up the required $2.8 million to extend the time frame by three months until Dec. 8.
7. Citi is close to signing a deal for its new European headquarters in Dublin, Ireland, the Financial Times reports. The lender could sign off on a nearly $100 million deal for new office space, and in the process boost its presence across the EU after Brexit.
8. Warren Hogarth, a former Sequoia investor, left his job and then raised $150 million to build a powerhouse. The startup raises cash for people with poor credit. In six years, Empower has grown to nearly one million subscribers with a team of fewer than 60 people.
9. Bed Bath & Beyond named Laura Crosson as interim chief financial officer after former CFO Gustavo Arnal was found dead after falling from a New York City building last Friday. Crosson previously worked at the retailer as senior vice president and chief accounting officer.
10. Those who participated in the Great Resignation received huge raises and huge benefits. But then cracks began to appear. Companies from Netflix to JPMorgan have cut headcounts. Here are four types of employees who may be laid off this fall.
People move;
- Lazard has hired Timothy Donahue as vice chairman of its American investment bank. Donahue leads Lazard’s personal loan business. Previously, Donahue was vice chairman of capital markets at JPMorgan.
- Kathryn Koch has joined asset management firm TCW Group as president and CEO. She joined the firm after 20 years as a partner and most recently chief investment officer with Goldman Sachs’ asset management arm.
- Deutsche Bank has hired Jonathan Moore as head of European flow credit sales and trading, IFR reports. Moore was most recently co-head of credit trading at Credit Suisse.
Produced by Aaron Weinman in New York. Tips? email aweinman@insider.com or tweet @aronw11. Edited by Hallam Bullock (Tweet @hallam_bullock) in London.
