It's happening. We reported a few weeks ago that a new round of layoffs was imminent at Credit Suisse. The victims are slowly becoming apparent.
They include prime broking professionals. They include senior (and therefore expensive) staff. They include equity researchers. And they include people in EMEA markets beyond London.
Kieren McCormack, a managing director and head of prime brokerage sales for EMEA is said to be leaving Credit Suisse after twenty years as the Swiss bank continues to shake-up its prime broking unit and move jobs to Ireland. As we reported last week, Ashley Brown, COO for EMEA in Credit Suisse’s prime broking division is also leaving the bank (he has a job lined up at Kairos Investment Management). Dougal Brech, the popular head of prime services for Credit Suisse in Europe, was asked to leave at the start of this year.
Beyond prime broking, Credit Suisse is losing staff in research. Bloomberg reports that Stefano Natella, Credit Suisse's New York-based global head of markets research, quit after 27 years last week. So did Rick Deverell, the Swiss bank's global head of fixed income and economic research, who left after six years. The bank is also said to have cut two equity researchers in Dubai and cut research jobs in South Africa. Some South African and Gulf stocks will now be covered by staff situated, "elsewhere."
Credit Suisse's cull of senior staff comes after CEO Tidjane Thiam ramped up the cost cutting in the investment bank. Two weeks ago, Thiam said he wants to remove another 22% of costs from the global markets division on top of all the costs he's taken out already. He also said that senior staff are worth the money because they're so much more productive than juniors - but was speaking specifically in relation to senior wealth managers.
Separately, Asia is dead (witness the plummeting revenues and profitability at Goldman's Asian division) and Europe is in a state of chaos (witness Brexit). In financial services terms, this leaves only one market untouched: the Americas.
This state of affairs has not escaped the eye of James Gorman, CEO of Morgan Stanley. "The big winner [from Brexit] is going to be New York," Gorman told the Financial Times. Of course, this could all change if Trump wins the U.S. election - although now looks less likely than before.
Goldman Sachs will move 2,000 people out of London post hard Brexit [says vague story]. (Sunday Times)
Goldman Sachs has yet to make a decision on the location of European staff [says Goldman Sachs]. (Bloomberg)
Deutsche Bank has not reached an agreement with the DOJ. It intends to go after Anshu Jain and Josef Ackermann for damages. (Bloomberg)
Deutsche Bank's chief risk officer says: "The risks in our derivatives book are massively overestimated," that the €46 trillion of exposure €41bn when netting has taken place. (Reuters)
Once Deutsche has reduced its fine, it might IPO its asset management unit after all. (Financial Times)
Brexit: M&G, Britain’s fifth-largest fund company, with £255bn of assets, is seeking permission from the Luxembourg regulator to set up a new fund range in the country. (Financial Times)
French finance minister: "One thing is sure, no one in the Eurozone will accept that the main clearing place will be outside the European union." (Sky)
Leave your job in the style of a Blackrock Portfolio manager: make a spreadsheet recording what you like doing each day. (Quartz)
The new style hedge fund manager: 'Quantamental managers combine the bottom-up stock-picking skills of fundamental investors with the use of computing power and big data sets to test their hypotheses.' (Business Insider)
Was the UK's London School of Economics really told that no foreign academics could advise the government on Brexit negotiations? (Jack of Kent)