You know it’s time to give up on banking when the people who walked away five months ago seem to be having a much better time than the people who stayed. This is the way of things at Tidjane Thiam’s Credit Suisse.
The Wall Street Journal suggests that life has been chaotic at the house of Thiam. Most chaotic of all has been the leadership of the fixed income division, where things have been a little vague. Upon arrival, Thiam got rid of the incumbent, Gaël de Boissard, and promoted Timothy O’Hara in his place. De Boissard left in December 2015, but says he had no real duties from the end of October. O’Hara, however, didn’t assume complete oversight of the trading unit until April 2016.
That left plenty of time for things to go wrong. They duly did. Credit Suisse, needless to say, made $1bn in losses in the first quarter. Thiam blamed these on his traders, whom he said hadn’t informed him of their exposures. However, the WSJ implies this was mostly due to his own poor management of the situation.
There are appears to be considerable ill-feeling inside Credit Suisse as a result. The Journal reports that some traders have been contemplating using their Credit Suisse shares to vote against the bank’s board at the AGM this Friday. Others were jubilant at the prospect of the Wells Fargo takeover which never materialized.
De Boissard, meanwhile, is fine. Since leaving Credit Suisse in December, he’s been on a five month skiing trip and has just returned from Greenland.
Separately, Business Insider has obtained a full list of J.P. Morgan’s 120 new MDs. It says one thing: IBD. 29 of J.P. Morgan’s new managing directors are in the investment banking division. This compares to five in global macro (rates and FX), three in global spread (credit) and seven in equities.
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Deutsche Bank has promised to cut costs more quickly. Global markets and technology jobs are likely to be worst affected. (Financial Times)
Goldman Sachs is slightly implicated in the BHS disaster. (Telegraph)
Bank of America appointed Glenn Koh head of global equities trading, a newly created role. (Reuters)
UBS plans to merge the middle and back office functions in its wealth management business. There could be layoffs as a result. (Financial Times)
Mike Bagguley COO of Barclays investment bank is denying that he was good friends with a banker on trial for manipulating LIBOR. – Even though Bagguley attended his colleague’s wedding and house-warming party and visited three or four times a month. (Bloomberg)
74% of millennials with over $100k of household income are borrowing from their parents. (Investment News)
If you’re the only woman in the pool of final candidates, you have no chance of getting hired. (Harvard Business Review)