Credit Suisse released its first quarter results today and they weren’t bad. Driven by a strong performance ‘in areas including global rates and foreign exchange, US residential mortgage-backed securities secondary trading, cash equities, prime services, and flow and corporate derivatives,’ the investment bank went from a CHF3.4bn loss in Q108 to a CHF2.4bn profit.
Notably, Credit Suisse also appears to be being rather liberal with compensation – despite the recent introduction of its scheme to pay bonuses out of toxic assets. Compensation accruals per head rose 90% year on year in the first quarter, to CHF155 (€101k). Credit Suisse investment bankers are unlikely to reap the benefits of this for some time though: bonus payouts under the toxic asset scheme are delayed for five years.
Credit Suisse said it had cut 120 relationship managers but was still hiring selectively in key areas. (Reuters)
Credit Suisse is advertising for Asian private bankers. (Wealth Bulletin)
Swiss trader says it’s like the good old days. (CNBC)
UBS cutting 50 private bankers in London. (CNBC)
From next year, anybody earning between 100,000 and 112,950 will be hit by a marginal income tax rate of 60 per cent as their personal allowance is wiped away the real rate will hit 61.5 per cent with national insurance. (Spectator)
750,000 people earn more than 100,000. (The Times)
Someone earning 500,000 a year will see their tax rise by 37,498 in 2010/11, while the 1m-a-year earner will pay 87,498 more. (Guardian)
“Taxation is the only easy way to restore a very small measure of sanity to the unjust rewards of the rich.” (Guardian)
Last time the IMF bailed out the UK when its debt was 6% of GDP. Today it is 12%. (Fintag)
Remember the Laffer curve? (Fintag)
UK financial bailout reaches 1.4 trillion. (Bloomberg)
Northern Rock says it will be substantially loss making in 2009. (Bloomberg)
Paulson and Bernanke instructed Lewis to keep quiet about Merrill’s financial difficulties. (Reuters)