The countdown has begun. In 16 days' time, Brady Dougan will no longer be CEO at Credit Suisse. Until then, he thinks people have got it in for his investment bankers.
"There are some people who say we would rather not have you in the investment banking business," says Dougan in an interview with the Financial Times. Those 'people' are fickle. - After the crisis, he points out that Credit Suisse won plaudits for its strong management. Today, Dougan says Credit Suisse does have a strategy - to strike,"a unique balance between the private banking business and the investment banking business, [while] clearly continuing to shift towards private banking and wealth management.” In the circumstances, Dougan feels the bank's poor share price is bemusing: "people are only convinced when they see it [the strategy] over a longer period of time."
Unfortunately for Credit Suisse's investment bankers, that time is running out. Not only is Dougan leaving in a matter of weeks, but Reuters points out that the bank's share price has risen 12% since it became apparent that Dougan is being replaced by Tidjane Thiam. Thiam is expected to shrink the investment bank and fortify the private bank in Asia. He starts on July 1st. Analysts suggest 3,000 investment banking jobs could go under the new regime. Dougan will not be the only one at Credit Suisse to be feeling a little paranoid.
Separately, an 'elite student' has challenged the notion that banks' legendary working hours are all that they seem. Business Insider has been speaking to an unnamed Wharton student who turned down an internship at Goldman Sachs in favour of an internship at a hedge fund. He says young bankers' claims to work crazy hours are pure bravado: ""Most people exaggerate when they say that, and a lot of the time it’s not really working, per se, but just waiting for work or waiting for work to be reviewed."
Leading fund management firms are making contingency plans to shift their operations to Luxembourg and Dublin if Britain leaves the EU. (SundayTimes)
Jim O'Neill says talk about the decline in the quality of people at the UK Treasury is "bollocks" and that working there is like being back at Goldman Sachs. (Sunday Times)
Anshu Jain will not get any severance pay. He did not want to financially burden Deutsche with his own, personal decision to quit. (Business Insider)
Anshu Jain never adapted to the post-crisis investment banking world and was still going in all of his businesses for market share, revenue maximisation and league tables, while all other banks were trying to restrict their resources to the businesses that could generate good returns in the new regulation while exiting all the others.” (IFRE)
Anshu Jain is personally criticized in a new report by the German banking regulator. (Handelsblatt)
Bank of America Merrill Lynch has hired Alex Setness, head of the EMEA transportation investment banking group at Citi. Citi promoted Setness to MD in January. (Financial News)
Peter Higgins, former head of long only credit strategies at BlueBay, has gone on gardening leave. (Global Capital)
HSBC just made Russell Crompton global head of ECM. Crompton joined from UKFI in 2010. (Financial News)
What Wall Street recommends you read this summer. (Bloomberg)
David Furlong, a 52-year-old financier, recently purchased a property in the south of France and commutes weekly to the City of London. (BBC)