Wall Street mobilizes to rally junior bankers, jobless claims hit pandemic low, and Robinhood whets IPO watchers: This Week in Finance

Welcome to This Week in Finance, your weekly roundup of the conversations trending among financial professionals on LinkedIn. Click Subscribe to be notified of each edition. This week:

A good year for Wall Street bonuses

While 2020 was disastrous for the overall labor market, financial professionals had a banner year. The average bonus paid to employees in the New York City securities industry jumped 10% to $184,000, New York state's comptroller said, adding that "Wall Street's near-record year shattered all expectations." He pointed to a flurry of activity that followed the COVID-19 outbreak — including a boom in stock and bond issuance, historically low interest rates, and trading surges fueled by market volatility — as drivers behind the industry's second-most profitable year on record.

• Wall Street is now "showering" junior bankers with special bonuses and perks, Business Insider reported, amid rising reports of burnout. Private equity firm Apollo is offering payouts of up to $200,000 if associates stay for at least another 18 months; Credit Suisse is extending $20,000 bonuses; Jefferies is doling out Peloton bikes and Apple products; and Citigroup has banned Friday video meetings.
• Shareholders are also set to benefit: The Federal Reserve said banks can resume normal levels of dividend payouts and stock buybacks starting June 30, provided that the lenders pass the latest stress tests.
• Here's what people are saying.

• Goldman's Solomon vows improvements: In a note to staffers, Goldman Sachs CEO David Solomon pledged to better protect workers from burnout, including by enforcing a rule that junior bankers not be expected in the office on Saturdays.
• How banking workplaces could change: Singapore bankers will return to offices and trading floors with more no-touch technology, more space between employees, and the option to work from satellite offices. These were among a slew of recommendations by the country's financial regulator for the future of workplaces.
• Sunak urges return to office: The UK's Chancellor of the Exchequer urged companies to bring employees back to the office as soon as lockdowns end, saying physical workplaces foster "spontaneity," "team building," and a culture of "meetings that happen by chance."

Can $3T jumpstart the economy?

Economic advisers to President Joe Biden are planning a $3 trillion spending bill aimed at "boosting the economy, reducing carbon emissions, and narrowing economic inequality." The proposal will be split up into two plans, The New York Times reported, citing unnamed sources, and will focus heavily on improvements to U.S. infrastructure — from enhancing broadband in rural areas to constructing roads and bridges to boosting the nation's electric grid. The sweeping economic agenda faces an uphill battle on Capitol Hill, as it likely will rely on increased taxes on corporations and the wealthiest Americans. 💲 Here's what people are saying.

• Jobless claims at pandemic-era low: New unemployment claims fell to their lowest level since the start of the pandemic more than a year ago. Initial filings for state jobless benefits dropped by almost an adjusted 100,000 to 684,000.
• College students saving 'stimmies': Most college students receiving stimulus payments plan to save or invest, according to a new Generation Lab/Axios poll, and that could be a near-term drag on a robust economic rebound.
• Gen Z faces wealth conundrum: The generation can expect just 2% average annual real returns on their investment portfolios, according to The Economist. By comparison, baby boomers, Gen X, and millennials have enjoyed real returns of 5% or greater.

Race to unblock global trade artery

Salvage crews hoped to take advantage of Sunday's full moon and rising tides to free a container ship blocking Egypt's Suez Canal since Tuesday, holding up $10 billion in trade a day. The Ever Given's rudder has been freed and dredging is complete, reported The New York Times. Egypt's president ordered preparations be made to remove cargo to help the Ever Given refloat. The chief executive of the salvaging firm onsite told Reuters that he hopes to have it freed early this week, "but everything will have to work out exactly right for that."

• Hundreds of ships are stuck in the traffic jam, though some are being rerouted as the crisis drags on. The 120-mile canal sees about 15% of the world's shipping traffic.
• The blockage is stopping supplies of oil and natural gas, toilet paper, coffee, and other items.
• Here's what people are saying.
• Shipping hits especially rough seas: Since November, shipping giants have lost at least 2,980 containers packed with goods, according to Wired — more than double the annual losses endured between 2008 and 2019.
• 'Blue economy' sees rising tide: A number of companies have set out to prove that conservation and capitalism don't have to live at odds when it comes to protecting the ocean.

Soon: Trade Robinhood on Robinhood

Fans of stock-trading platform Robinhood will soon be able to use the app to buy shares of ... Robinhood. The 8-year-old startup said it filed for an initial public offering, which could see its shares debut on the Nasdaq stock exchange by June, unnamed sources told Bloomberg. Despite being swept up in the recent frenzy of "meme stock" trading that saw lawmakers' scrutiny rise as quickly as GameStop's share price, Robinhood has continued to attract new, primarily millennial, users — including hundreds of thousands a day during the GameStop saga. 💲 Here's what people are saying.

SPACs busting the boys club

The number of companies going public through blank-check mergers with special purpose acquisitions companies has exploded in recent months — and it's creating a unique opportunity for women. Rather than sitting back and allowing men to dominate the rising trend, more women are launching their own SPACs to bring their experience and purpose to the table. The burgeoning blank-check business is leveling the playing field by allowing women to "start fresh and lead rather than follow," positioning SPACs to potentially emerge as "the new Title IX of Wall Street," wrote Forbes's Jane Hanson. 💲 Here's what people are saying.

• WeWork opts for SPAC route to market: The co-working company is merging with BowX Acquisition, a SPAC, in a $7.9 billion deal that would finally vault it into the public market. WeWork slashed costs since its failed public offering in 2019 and expects a post-pandemic surge in business.

U.S. catching up on digital payments

The U.S. used to lag China, Europe, and even parts of Africa in digital payments. Not anymore, says The Economist. U.S. companies such as PayPal, Stripe, and Square have exploded in value in recent years, propelled by e-commerce, a shift to digital by brick-and-mortar businesses, and increasing market share vis-a-vis incumbent rivals such as Visa and Mastercard. The Economist noted that the fiercest competition may actually come from big tech companies through products such as Apple Pay. 💲 Here's what people are saying.

Apple steals Aramco's crown

Formerly the world's most profitable company, Aramco has lost its crown to Apple. While the Saudi oil giant recorded a $49 billion profit for its 2020 fiscal year, the tech giant reported $57.4 billion. And while oil prices may be rebounding after a year marked by pandemic lockdowns, Apple "hardly registered a blip in its steady, high margins," with homebound consumers buying up iPhones, iPads, and Macs, said Quartz. 💲 Here's what people are saying.

Myanmar economy may shrink 10%

Myanmar's economy will shrink by 10% this year as widespread strikes and workplace shutdowns continue, the World Bank predicted. People have been demonstrating for weeks against February's military-backed coup, with banking and internet access often disrupted in the frontier economy. The U.S. and UK also imposed sanctions on two firms that control broad swaths of Myanmar's economy and financially support the military. 💲 Here's what people are saying.

With Alexander Besant, Yunita Ong, Emma Hudson, Monica Fike, Cate Chapman, Jake Perez, Scott Olster, Kelli Nguyen, and Jessica Hartogs.

What's your take on the week's news and other developments impacting you or your business? Join the conversation in the comments below.