Yesterday, Credit Suisse extolled the virtues of its equities business. Today, we understand it's been making some big cuts.
Headhunters and Credit Suisse insiders say the bank has cut two of the most senior names in its equity derivatives business, along with several more junior people in cash equities and research.
Walter Rotondo, a long-serving Credit Suisse banker who joined in 2006 and was most recently head of European equity derivatives convertibles trading is said to have gone. So too is Andrea Negri, a managing director, co-head of equity sales and head of equity derivatives sales in Europe. Negri joined Credit Suisse in 2008 after spending 10 years at Lehman Brothers. He was promoted to head cross asset sales at a new Credit Suisse group in February.
Neither man answered his phone when called. Credit Suisse declined to comment.
Headhunters said Credit Suisse has also let go of people in equities cash sales, emerging markets sales, and research. Cameron Hedger, a managing director in European fund linked derivatives is also said to have gone. Market rumour has it that Credit Suisse wants to bring in Benoit Rauly, formerly global head of complex equity and hybrid trading at UBS.
The cuts come after the equities business had a dire third quarter, which it blamed partly on intentionally smaller prime broking revenues. Credit Suisse spent yesterday's investor day saying how integral equities is to its business model and claiming that restructuring in its markets division is over - even though it plans to take out an additional 8% of costs by 2018.
These are unlikely to be the last cuts in Credit Suisse's equities business: more are expected before bonus time. The danger is that the faster Credit Suisse cuts costs, the faster it loses revenues and market share.