It’s not only front office bankers in areas like rates that are being laid off. It’s operations bankers too.
Hence, Morgan Stanley, which we revealed today is making 1,600 job cuts after Christmas, is also getting rid of 80 people in Singapore whilst shifting jobs to India. And Credit Suisse is combining its private banking and investment banking trade clearing operations in an effort to reduce costs.
Credit Suisse’s initiative, announced by memo yesterday, suggests a struggle between London and Switzerland. Swiss-focused Romeo Lacher, head of operations for Credit Suisse private bank and a member of the executive board, will work with Gary Bullock, formerly head of operations at the investment bank to implement the changes. Redundancies seem inevitable. Promisingly, Bullock will be the new overall head of ‘global operations’, reporting into the CFO. Investment banking operations staff may actually come out better off.
The Credit Suisse bonus pool will be ‘sharply lower’ this year. (Reuters)
UBS staff in Switzerland will receive a 0.7% pay rise. (Reuters)
The former desk head at UBS’s London wealth management business, accused of defrauding customers of millions of pounds through rogue trades, was a “golden boy,” held in awe and trusted by senior management to such an extent he was able to re-engineer the bank’s controls, says the QC, for his co-defendant. (The Times)
Fixed-income bonuses at BAML will be down 60%; equities bonuses will be down 40%. (Fox Business)
Crédit Agricole SA, France’s third-largest bank, said it will exit 21 of the 53 countries in which it operates. (WSJ)
Crédit Agricole’s London division employs 1,800 people. Not any more. (The Times)
Goldman Sachs’ financial sponsors head is leaving after 25 years. (Bloomberg)
RBC Capital Markets has made Josh Critchley, a former Goldman Sachs and Merrill Lynch banker, head of European investment banking. (Financial News)
If Jefferies employees chose to receive restricted cash in lieu of restricted stock, “that cash will be subject to a 20 month clawback. (Financial News)
Mr Horta-Osorio, Sir Win said, was not suffering from any form of mental illness. “It was physical: overwork, sleep deprivation and exhaustion… an inability to switch off.” (Telegraph)
Horta-Osorio had more than a month of insomnia in the run-up to his sick leave. “He’s 100% now,” one close associate said. “He’s maybe even 110%– he’s so full of energy.” (Financial Times)
The average hedge-fund salesperson was paid £366k a year in 2010 in pay and performance bonuses, according to Alpha Search, and the firm is predicting a 15-20% increase this year, to £439k. (Financial News)
Profits at Henderson have risen 50% this year. (Evening Standard)
If City workers really are so much more skilled, ingenious and industrious than idle civil servants and beer-swilling bolshy miners, shouldn’t they find it easier to get well-paid work elsewhere? (Stumblingandmumbling)