Morning Coffee: Rurik Jutting, the 'psychopathic' 29 year-old BAML trader who 'made as much as an MD.' Risk is back at Deutsche

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Is Rurik Jutting a psychopath? The question may be premature as the ex-Bank of America Merrill Lynch (BAML) derivatives trader hasn't had a psychiatric assessment. But it doesn't seem abstruse given that Jutting has just been charged for the brutal murder of two women in his Hong Kong flat.

Jutting reportedly called the police himself from the murder scene. He also left a chilling out of office message on his work emails suggesting clients contact someone else because he is an 'insane psychopath'.

Bank of America has since blocked access to Jutting's email account. However, his LinkedIn and Facebook accounts remain accessible and respectively depict an elite student who had few real friends. Jutting won a scholarship to Winchester College and went on to study history at Cambridge University. From there, he joined Barclay's graduate programme in London, before skipping to BAML two years later. He spent three years working for BAML in London before moving to Hong Kong with the U.S. bank in July 2013, The cover photo to Jutting's Facebook account states that 'Money DOES buy happiness.' He has no LinkedIn contacts (unusual for a young banker) and his Facebook interactions were restricted to young Asian women. An ex-colleague of Jutting's at BAML told the Telegraph that he, "talked very loud and made....loads of money." Another said that despite being only 29 years' old he was, "making as much as an MD."

Jutting's arrest has spread shockwaves through both BAML and Barclays in Hong Kong and London. J Residence, the building he lived in Hong Kong, is popular with young expat bankers in the city. Jutting seemingly resigned from BAML around a week ago. The Wall Street Journal reports that he posted a Facebook update on October 28th stating, stepping back from the ledge, burden lifted, new journey begins. Scared and anxious but also excited. The first step us always the hardest.”

Separately, in a coruscating piece on Deutsche Bank, the Economist suggests the German bank has got its strategy wrong. It says that Deutsche's attempt to maintain its large fixed income currencies and commodities (FICC) business is ill-advised because the bank's balance sheet is too weak. Competing in FICC today requires huge investments in technology and compliance and Deutsche - which is barely profitable and has already diluted its shareholders twice in two years - is poorly placed to make these investments, argues the Economist. Worse, the German bank is reportedly attempting to overcome its shortcomings by taking more risk. "They have a different view of risk than the rest of us,” one banker told the magazine, adding that Deutsche was doing things that his firm considered, 'too dicey.'


Maybe the UK won't be restricting immigration from the EU after all. - Angela Merkel has reportedly warned David Cameron that a cap on EU migration wouldn't be compatible with Britain's membership of the EU. (Guardian).

Trader Massimo Amati left Credit Suisse in 2011 and joined two hedge funds. Now he's gone back to the bank. (Financial News) 

Good news for Barclays' deferred stock bonuses: shares in the bank rose 8% on Friday following news that the Bank of England's leverage ratio will be less strict that expected. (Bloomberg) 

Morgan Stanley has offered dozens of its commodities traders retention bonuses if they stay with the bank until March 2015. Confusion about its commodities strategy means they're thinking of leaving anyway. (Reuters) 

UBS has only just prohibited its FX traders from placing personal traders alongside client transactions. Until recently, UBS traders were able to bring their mobile phones onto the trading floor and often had multiple personal accounts. (Wall Street Journal) 

900 people have left the Financial Conduct Authority since August 2013. It's not clear whether they quit voluntarily or were pushed. (FT Advisor) 

How much the 1% earn by age. In America. (Atlantic) 

The Bank of England's summer barbecues cost £100k. (Telegraph)

Interesting ways of beating interview nerves. (Guardian) 



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