Hi. I’m Aaron Weinman. The speed at which technology is changing every Wall Streeter’s job is dizzying.
Stockpiles of data have enabled firms from banks to hedge funds to share, process, and store information. But knowing when to use that information and package it in a way that is best for employees and clients is the big challenge.
To meet the challenge, some of the best-known firms like Goldman Sachs and Morgan Stanley are piling billions of dollars into high-priority tech projects.
It is truly an exciting time for tech on Wall Street with the adoption of the cloud and quantum computing. The growth of third-party software services like M&A tracker Datasite has eased the overall deal-making process, and new initiatives like Versana — a tech platform to support the syndicated loan market — are moving once-archaic industries reliant on endless spreadsheets to the next level.
Let’s take a look.
1. Harnessing data is one of the top tech projects at banks, hedge funds, and asset managers. Other areas of focus include quantum computing, augmented reality, and system connectivity.
Another hot topic is the cloud. Wall Street firms have centered their efforts on cloud technology, marrying offerings from tech giants like Amazon’s AWS, with their own internal analytics and research tools.
Emerging tech — like the aforementioned quantum computing or virtual reality — are getting more attention as financial services firms look to get ahead of their peers with the early adoption of new tech.
JPMorgan, for example, is betting on quantum-computing tech to process algorithms and make calculations at blistering speeds. Quantum computing uses mechanics known as qubits. Classic computing bits can store only a one or a zero, but qubits can store multiple values at the same time.
To help understand this tech gobbledegook, Insider’s Bianca Chan and Carter Johnson talked to 10 top Wall Street firms about their most ambitious tech projects.
Read the full story here.
And ICYMI – Insider compiled nearly 50 pitch decks that helped fintechs disrupt the trading, investing, and banking landscape.
In other news:
2. Ken Griffin’s Citadel is outpacing other multi-strategy hedge funds. The firm’s Wellington Fund was up 3.7% at the end of August, and is now up 26% year-to-date. Performance at rivals like Millenium, DE Shaw, and Balyasny fell behind.
3. Gregg Costa, a judge who quit the conservative Fifth Circuit appeals court, is joining law firm Gibson Dunn. Costa’s departure was a surprise, and comes after Gibson Dunn recently lost high-powered litigator Randy Mastro.
4. Tech-related initial public offerings helped the capital markets log record numbers in the last two years, but that activity has slumped as investors shunned unprofitable companies. Several bankers spoke with Insider about how the next IPO batch will differ, and here are three tech companies that they believe could end the 2022 IPO hiatus.
5. US companies like Walmart and McDonalds led what was the biggest day for the corporate bond market in 12 months, according to Bloomberg. Nineteen companies launched deals to sell bonds on Tuesday, with some $30 billion to $40 billion expected to hit screens. Borrowing costs are on the rise, but companies want to lock in deals before the next release of inflation data.
6. Digital World Acquisition Corp, the special purpose acquisition company that agreed to merge with Donald Trump’s social-media company, failed to get an extension to complete the deal. At stake is a $1.3 billion cash injection that former President Trump’s Truth Social app stands to receive from the SPAC sponsor, Reuters reported. Later 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 needed to extend the time frame by three months to December 8.
7. Citi is close to signing a deal for new European headquarters in Dublin, Ireland, the Financial Times reported. The lender could sign a roughly $100 million transaction for new office space, and in the process, boost its presence across the European Union after Brexit.
8. Warren Hogarth, a former Sequoia investor, left his job and then raised $150 million to build Empower. The startup advances cash to people with poor credit. In six years, Empower has reached nearly one million subscribers with a team of fewer than 60 people.
9. Bed Bath & Beyond has named Laura Crossen as its interim chief financial officer after former CFO Gustavo Arnal was found dead last Friday after he fell from a New York City building. Crossen previously worked at the retailer as a senior vice president and chief accounting officer.
10. Those who participated in the Great Resignation landed big raises and great benefits. But then cracks started to appear. Companies from Netflix to JPMorgan have slashed headcount. Here are the four kinds of employees most likely to get laid off in the current downturn.
- Lazard said it has hired Timothy Donahue as a vice chairman of US investment banking. Donahue will lead Lazard’s private-credit business. Previously, Donahue was a vice chairman of capital markets at JPMorgan.
- Kathryn Koch has joined asset-management firm TCW Group as president and chief executive officer. She joined the firm after 20 years with Goldman Sachs’ asset-management arm, where she was a partner and most recently chief investment officer.
- Deutsche Bank has hired Jonathan Moore as its head of European flow credit sales and trading, IFR reported. Moore was recently the co-head of credit trading at Credit Suisse.