Credit Suisse is cutting costs. The Swiss bank cut CHF800m of costs from its global markets division last year, and it says it wants to cut another CHF400m by 2018. Expensive senior staff at director level and above are being jettisoned in the process, but the good news is that – in fixed income at least – some of them have been hired elsewhere.
Mark Grilli, a former director in interest rate sales at Credit Suisse, has joined Odeon Capital Group, a New York-based broker dealer, as a senior vice president in sales. Joe Midmore, a former director in Credit Suisse’s London prime services business, is now head of sales and strategy at Open Gamma, a risk analytics firm. At the end of last year, Samer Oweida, a former Credit Suisse MD and New York-based head of Americas FX and emerging markets sales, joined Morgan Stanley as an MD in FX and emerging markets.
All three are experienced traders/salespeople and should therefore provide some hope to 40-something markets professionals with concerns about their employability. Grilli spent nearly 20 years at Credit Suisse in its various guises. Midmore spent nearly 15 years with the bank and Oweida was there over nine years.
As fixed income trading picks up after a six year slump, the appointments could be taken as an indication that demand for senior markets staff is making a comeback. If so, it will come as good news to the 7,000 front office fixed income markets staff who’ve lost their jobs across banks globally since 2010 according to Coalition.
Celebrations may be premature, however. As far as we can make out, none of the eight people who were let go from Credit Suisse’s rates business last May have found new jobs – even though rates trading is making a comeback. Nor is it certain that all rates businesses are benefiting equally: Bank of America said its rates business had a weak fourth quarter, even as J.P. Morgan said rates was a big contributor to its out-performance in the fourth quarter.
Photo credit: erhui1979/Getty