Credit Suisse is moving some jobs out of London and into Dublin. Cue excitement and predictions that thousands of other jobs will go the same way if the UK votes to leave the European Union.
Actually, however, Credit Suisse’s Irish-job-shunt is a bit of a damp squib. Back in January, the word was that CS would be moving, ‘as many as 200 jobs to Ireland from London‘ across prime services, clearing, settlements, IT and ‘financial support.’
In the event, it’s reportedly moving a mere 40 traders and 60 back office staff to the Irish city, all of them in prime brokerage, prime financing and securities-lending.
There’s no timeline for the move, but CS seems to be planning on relocating existing staff rather than hiring new ones: it’s currently advertising one job in the Irish Republic, for an experienced senior software developer. Not exactly a hiring spree then.
Nor are other international banks doing much in the way of Irish hiring either. Goldman’s investment banking business in the Republic is run by Hugo MacNeill, an MD who spent 18 years in London before moving home, but MacNeill’s team seems pretty small. The last time the firm declared its Irish results, (in 2011), it employed 55 people there. Goldman sold its Irish fund administration business to State Street three years ago, so its employees in the Republic are likely to have dwindled further since. Deutsche has a global technology and operations office in Dublin, and is currently building its infrastructure big data team in the city, but that’s about it.
This isn’t to say Credit Suisse’s decision isn’t significant. What’s notable is the transplantation of trading jobs. Historically, most banks have preferred to keep traders together in London – of Goldman’s 55 Dublin staff in 2011, only two were in sales and trading, with the rest working in ‘support finance, operations and technology,’ for example. If Credit Suisse shifts traders to Dublin, will other banks will follow?
Maybe, but it could be argued that Credit Suisse’s securities lending sales people and traders aren’t ‘real’ traders anyway. They’re more admin professionals who exist to line up securities and collateral for hedge funds who want to go short. Yes, traders are coming to Dublin, but it’s nothing to get excited about – yet.