Any minute now, Credit Suisse will apparently make a lot of senior level redundancies in London. Last week, City Am reported on a rumour that Credit Suisse is planning to eliminate 30% of its London-based MDs and directors. It’s a move that would appear to make sense: Credit Suisse’s costs are high, revenues per head have plummeted in the investment bank and the existing CHF2bn cost reduction plan is deemed inadequate (by analysts at UBS).
However, Credit Suisse’s front office investment banking MDs appear to be fighting back. The Wall Street Journal has spoken to some who are miffed that it seems to be mostly front office bankers who being cut and not IT and HR types who usually bear the brunt of such things.
‘One specific area of ire for the rank and file is Credit Suisse’s shared-services division,’ it claims. The shared services division at Credit Suisse includes: human resources, branding and communications and information technology.
Ominously, back office redundancies may be coming at Credit Suisse soon. The Journal claims to have spoken to one, ‘bank employee’ who ‘said the cost-cutting drive is just now starting to focus on such back-office areas, after initially targeting revenue-generating functions.’
Last year Oriel Securities hired 35 people. This year, it cut 18 jobs in March and an unspecified number this week. (Financial Times)
Bruno Iksil was not focused on personal style, would wear the same clothes several days running, and would obfuscate if anyone asked him about his positions. (WSJ)
Jamie Dimon says regulation isn’t lax in London and that banks would prefer to move to Singapore or China. (Telegraph)
“One of JPMorgan’s top goals is preventing the bank’s London derivatives operations being regulated by the CFTC.” (Financial Times)
Bad bonuses may be coming at Martin Currie. (Scotsman)
A millionaire today is merely “affluent” rather than super-rich. You now need £5m in the bank to have a, “large sum” of money. (Telegraph)
There should be a cooling off period when people move between City firms and the FSA. (Guardian)
Hector Sants is giving his bonus to a charity offering art therapy to children with emotional and behavioural difficulties. (Guardian)
People working in financial services are like hyper-intelligent perverts, says counsellor. (Guardian)
“Patience in this industry is about two years,” says Jane Buchan, chief executive and founder of Paamco, a $16bn fund of hedge funds that has been investing in hedge funds for 12 years. “People won’t take a bonus one year and they’ll wear it as a badge of pride, but when it comes to a second year – no way.” (Financial Times)