Morning Coffee: A Dreadful Cautionary Tale For Junior Analysts Who Are Out Of Their Depth, And Why Investment Bankers Are Taking Pay Cuts To Move Into Private Equity
A junior analyst just cost his employer $100m. : What do junior analysts want? Responsibility. The opportunity to make a difference. Real work, on real clients. Why are they not always given it? Because of cases like this. Transamerica Corp, the US asset manager, has agreed with the SEC that it will pay nearly a hundred million dollars to compensate investors for a suite of quantitative products it marketed. The SEC judgement contains all the gory details. They start with a junior analyst at Aegon USA Investment Management (Aegon NV of the Netherlands is Transmerica’s parent company).