came under fi re for missing the
corporate scandals at Enron
and WorldCom. Th e result was
a slew of investigations into the FUNDING AND
practice of research and
increasing pressure to unbundle
the function from execution.
Fast forward to today and
FINANCE BY: LYNN STRONGIN DODDS
practices and process have been
tightened while Chinese Walls
have been reinforced. Th ere was
a belief that there would be an A
lthough it may not be as high the fi rm’s regulatory relations, accounting
profi le as some other jobs in policy and public reporting.
investment banking, the funding
exodus to the independent and fi nance roles play a crucial part in TREASURY
research fi rms, but in fact the oiling the wheels and managing the risk. As for the corporate treasury function,
investment banks still have a Th e pace perhaps is not as fast as trading it has gained prominence in the post
lock on the market. Th is is and sales or corporate fi nance, but the credit crunch world as its main
mainly because they cover the work is just as challenging. responsibilities include maintaining the
large, liquid stocks that are Although each bank is set up fi rm’s liquidity and optimising its
popular with many diff erently, the fi nance control group capital base. According to Stephanie
institutional investors. (FCG) acts as the chief fi nancial offi cer Ahrens, head of graduate recruiting at
Moreover, the heavyweights to the various divisions, providing Morgan Stanley, the group also
have spent the past few years profi tability analyses, business plans provides corporate fi nance advice to
bolstering their specialist and budgets that support current and senior managers, accesses multi-
expertise whether it is in future business initiatives. Th e group is currency as well as long and short
emerging markets, small to mid typically divided into treasury, tax, fi nancing and coordinates the
cap stocks or sustainability controllers, and strategy and planning. relationship with the rating agencies,
investing. At Morgan Stanley, for example, lenders and creditors. Moreover, the
FCG manages the fi rm’s risk by corporate treasurers manage the fi rm’s
SKILL SET implementing fi nancial controls across foreign exchange requirements as well
As for the skills required, the its business activities. It is responsible as interest rate exposures.
CFA is considered essential to for the bank’s fi nancial records, Ahrens says, “Th e fi nance functions
understanding both the nitty ensuring that the assets and liabilities of are responsible for providing technical
gritty technical details as well as the fi rm are properly controlled. In and strategic support across the
the bigger sweeping picture. addition, the group provides accurate organisation and they can be a way good
Financial and accounting and timely fi nancial information to way to move into the front offi ce. As for
experience is also helpful as senior management as well as to skills, I do not think there is a one size
fi nancial modelling is often statutory and regulatory bodies. Tax fi ts all in this particular area. Th e person
required for company and and accounting compliance are also will have to be able to work in a team,
industry analysis. In addition, under FCG’s remit, which means be numerate and analytical and have a
candidates are expected to have members of the team have to liaise with hunger to work in the fi nancial area. In
sound analytical and accounting bodies and regulators on terms of personal attributes, they must
mathematical acumen, specifi c future standards. be entrepreneurial, innovative as well as
knowledge of markets and Breaking it down further, the fi rst a strong communicator because they
segments, and a keen interest in rung at Morgan Stanley’s FCG is the will be in regular contact with senior
the investment process. analyst who is placed in the planning and managers.”
On a personal level, strong analysis group, global controller’s Recruiters also admit this discipline
communication – both written organisation or global wealth or asset may suit people who do not like to
and oral are a must. Analysts management, Th ose in the fi rst hub will work under the intense pressure of a
will not only be expected to be expected to manage internal reporting, trading fl oor or corporate fi nance
make presentations and write prepare competitive analysis and lead the environment. Th e deadlines are tight
reports but also to have regular forecasting, planning and allocations but they are not the same as working
contact with their colleagues processes. Th e global controller’s on a trading fl oor which is in a
and fund managers.
Cg
organisation, on the other hand, manages constant state of fl ux.
Cg
70
558-78 investment banking.indd 708-78 investment banking.indd 70 222/11/08 12:23:052/11/08 12:23:05
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