One possible measure of how bad things are getting is a compulsion for employees to step in and offer urgent strategy advice.
This appears to be what’s coming to pass at Credit Suisse. In a long article today, Bloomberg reports that CS bankers are demotivated and worried about the bank’s future in light of the SNB’s suggestion that it raise a little more capital.
Having spoken to an unidentified ‘executive’ at Credit Suisse, Bloomberg says: “Senior Credit Suisse bankers want Brady Dougan to raise new capital now and have begun sending suggestions directly to senior management.”
Separately, Morgan Stanley has issued a report reiterating the need for more redundancies and/or alternative cost cutting at Credit Suisse. Absent a recovery in the bank’s revenues, Morgan Stanley says CS needs to reduce costs by another 6-10% and reduce variable costs (bonuses) by 13-21%. Morgan Stanley’s analysts also suggest that Credit Suisse cuts cash compensation and allocates more pay through the unpopular PAF2 pay scheme (not to be confused with the popular PAF1) which doesn’t vest for up to 8 years.
Two Credit Suisse bankers in the US have left for Deutsche. (Businessweek)
Credit Suisse has doubled the size of its equities team in South Africa. (BusinessDay)
Commerzbank has launched a second attempt at overturning the ruling that it must pay Dresdner bankers’ bonuses. (Financial Times)
Cern is investing some of its $4bn pension fund in hedge fund, but has asked managers not to short anything for moral reasons. (Financial Times)
There are lots of credit recovery jobs in Scotland. (IFSD Glasgow)
Chinese analyst gets so burned out that parents must intervene. (BusinessInsider)