Credit Suisse is on a cost cutting mission. In the fourth quarter of 2013, expenses were 101% of revenues at its investment bank. That's not so hot on any measure, and particularly when you consider that CS has a cost-revenue target of 70%.
As we observed last month, Credit Suisse seemed to spend 2013 losing expensive existing staff and hiring in cheap graduates and MBAs. That trend appears to be continuing in 2014: the bank has just said goodbye to Neil Maddocks, a managing director in the rates business which is part of the bank's global macro products group. Maddocks, a graduate of Cambridge University, had been with CS since at least 2003 and had held senior positions in Asia.
Credit Suisse insiders confirmed his departure.
Maddocks isn't the only senior CS trader to have silently disappeared recently. The Financial Conduct Authority Register shows that Simon Horwood, co-head of trading for global FX and short term rates slipped out at the end of January. Horwood had been with Credit Suisse for over a decade.
The removal of senior rates bankers follows Credit Suisse's decision to pull back from rates trading, as presented in its latest strategic bubble chart in February.