Credit Suisse

  • News

    Layoffs Watch ’12: Credit Suisse

    Cuts were said to have gone down at the House of Dougan this week.

    “Layoffs at Credit Suisse this week, mostly Wednesday and Thursday. ASO / VP level in IBD groups in New York (TMT, Energy, Industrials, Sponsors).”

    / Jun 29, 2012 at 3:38 PM
  • News

    Layoffs Watch ’12: Credit Suisse

    While Brady Dougan is keeping his job, the same cannot be said for 1/3 of European investment bankers.

    Credit Suisse is to cut senior staff in its European investment banking department by up to a third, three sources familiar with the matter said, as tighter regulation and weak markets hit the sector. “In the European investment banking business, they are going to get rid of 60 directors and managing directors,” one source said on Monday. The investment banking department affected advises on mergers and acquisitions, stock market listings, financing and debt issues, as opposed to other areas of the broader investment bank that focus on securities trading. “It is about a third of the directors and 10-15 percent of the MDs,” the first source said, referring to what are typically two most senior job ranks in the banking world. The layoffs would happen in July, this person said. The formal redundancy process can last several months. A second source said the cuts could end up affecting 20-30 percent of senior investment banking staff in Europe.

    Credit Suisse To Make Heavy Job Cuts In Europe [Reuters]

    / Jun 25, 2012 at 3:23 PM
  • News

    Credit Suisse: Leave Brady Dougan Alone!

    In an unusual move, the board of Credit Suisse Group AG Friday issued a statement to back Chief Executive Brady Dougan, saying it is confident management’s plans to bolster capital will ensure Switzerland’s No. 2 bank meets and exceeds regulatory requirements. Mr. Dougan’s problems have been building in recent days. Last week, he was caught […]

    / Jun 22, 2012 at 2:21 PM
  • News

    Swiss National Bank Is On To This “Swiss Banks Are So Great” Scam

    The Swiss National Bank is not particularly thrilled with the state of the Swiss Not-Quite-National Banks and wants them to do something about it: The SNB is therefore of the view that both big banks should further expand their loss-absorbing capital. For UBS, this implies a continuation of its capital strengthening process; and for Credit […]

    / Jun 14, 2012 at 6:01 PM
  • News

    Paying Bankers In Derivatives Worked Out So Well For Credit Suisse, Let’s All Do It

    BreakingViews has a couple of posts up about one of my favorite things in the financial universe, Credit Suisse’s habit of paying its bankers in structured credit instruments that take pages to describe. How’s that going? Great: Three years ago, around 2,000 employees were forced to take some $5 billion of the riskiest assets from […]

    / Jun 12, 2012 at 3:53 PM
  • News

    Layoffs Watch ’12: Credit Suisse

    The Swiss bank is not done with its firings.

    Credit Suisse, the second- biggest Swiss bank, told New York state regulators it will eliminate 126 jobs in Manhattan over the coming months. The dismissals affect offices at 1 Madison Ave. and 11 Madison Ave. and will extend through Aug. 6, the bank wrote in a Department of Labor filing. The firm decided last year to scale down its investment bank and said it would cut 3,500 jobs.

    [Bloomberg]

    / May 15, 2012 at 7:18 PM
  • News

    Marvel At The Derivative On Its Derivatives That Credit Suisse Wrote To Itself

    Financial news is very serious business and you should probably fret more than you do about the economy and the banksters and the muppets and the homeowners and so forth. Some things, though, are best viewed as purely aesthetic triumphs, and your reaction should just be an appreciative whistle. This starts slow but stick with […]

    / Apr 25, 2012 at 4:33 PM
  • News

    Layoffs Watch ’12: Credit Suisse

    Cuts are going down at the House of Dougan today.

    From the front lines:

    “Layoffs started at Credit Suisse this morning, across the investment bank. All levels affected, including a good amount of senior guys.”

    Apparently these reductions are part of a round cuts announced last year and were to be expected (though the “let’s have a chat” from HR this morning may still have been a slight surprise for those being asked to take a seat).

    / Apr 24, 2012 at 11:44 AM
  • News

    Layoffs Watch ’12: Credit Suisse, Maybe

    The Swiss bank might cut 5,000 employees or it might not.

    / Apr 16, 2012 at 10:37 AM
  • Banks, News

    Today In Swiss Banks With Creepy But Defensible Structured Products

    I don’t really understand it but the TVIX thing is creepy fun. If you haven’t followed it, Credit Suisse issued this exchange-traded note called TVIX that was a 2x levered bet on the VIX. They suspended new issuance about a month ago due to position limits, and people were just so damn excited to own the thing that its price crept up to 189% of its fair value, where “fair value” is a reasonably easily measurable thing based on the formula in the TVIX prospectus. Then last week Credit Suisse announced that they would be creating more units, and the price plummeted to and then through fair value, which is what you’d expect to happen. Except that it started plummeting a few hours before that announcement, which is Suspicious.

    So of course people are sad and so there’s a Bloomberg Brief with sort of sad-funny quotes like:

    “When it started to fall, I bought more because I couldn’t believe how low it was going. I didn’t realize I was playing with a hand grenade.”
    – Michael Gamble [heh! – ed.], 67, who doubled down on his TVIX investment before the price collapsed.

    Investors “all think: ‘Oh, I’ll just buy these things, I’ll be hedged against volatility and everything will be wonderful.’ And now they’ve seen the market goes down and their volatility protection goes down too, and they’re going ‘Hmm, what happened here?’ These people are going to have to pay a really expensive lesson.”
    – Larry McMillan, who manages $30 million as president of McMillan Analysis Corp.

    So, yes, Larry, they are going to pay a really expensive lesson. But what is it? Stephen Lubben has a little thing in DealBook today where he frets:

    / Mar 29, 2012 at 6:27 PM
  • News

    Double Volatility Product Double Volatile

    I blame spring break both for the lack of news this week and for the fact that what news there is revolves around trading glitches. Apparently spring break has cleared New York not only of responsible adult bankers and traders taking their kids to Disney, but also of responsible adult trading computers who are off […]

    / Mar 23, 2012 at 3:49 PM
  • bradydougancreditsuisse

    News

    Layoffs Watch ’12: Credit Suisse

    Cuts are coming to the House of Dougan next month.

    / Feb 24, 2012 at 11:58 AM
  • Banks, News

    Credit Suisse Traders Made The Unusual Mistake Of Committing CDO Fraud On Themselves

    I’ve been thinking a lot about financial industry compensation recently, and probably so have you, for different reasons. As a non-recipient of said compensation, I’ve been waxing philosophical about how your bonus can incentivize you either to put on low-risk trades that are unlikely to blow up your firm or to go instead with high-risk […]

    / Feb 1, 2012 at 4:05 PM
  • News

    Layoffs Watch ’12: Credit Suisse

    The cuts won’t go down until the spring, so just something to keep in mind.

    / Jan 31, 2012 at 6:55 PM
  • News

    Bonus Watch ’12: Credit Suisse

    “People are furious.”

    / Jan 27, 2012 at 11:57 AM
  • Banks, News

    Paying Bankers In Derivatives Worked Out So Well For Credit Suisse That They’re Going To Do It Again

    Dealbreaker has long admired Credit Suisse for being on the cutting edge of creative approaches to compensation. In 2008, they gave bankers bonuses consisting of “toxic assets” to (1) incentivize the risk-takers to stick around and (2) remind people that “toxic assets” is a meaningless term if you don’t consider price. That worked out okay. […]

    / Jan 23, 2012 at 3:23 PM
  • News

    Bonus Watch ’11: Credit Suisse

    A couple weeks back, a report circulated that Wall Street banks were considering freezing compensation for junior employees. The firms were hesitating, however, supposedly on account of the backlash they feared would occur from failing to keep “potential future stars…engaged and happy.” Yes, they were terrified at the consequences of how their junior mistmakers would […]

    / Jan 23, 2012 at 1:58 PM
  • News

    Brady Dougan Is Waiting For His Thank You

    Remember, back in December 2008, when Credit Suisse announced it would be paying out bonuses comprised of toxic assets? And Brady Dougan was staring at the business end of a hissy fit from many a miffed employee, who thought good and hard about threatening to leave before realizing it was cold out there? Apparently things […]

    / Jan 20, 2012 at 11:56 AM
  • News

    Report: Trembling In Fear, Wall Street Banks Want To Make Sure They’ve Got Each Others’ Backs Before Invoking The Wrath Of 22 Year-Old Junior Mistmakers

    As you may have heard, bonus season this year is going to be a bit tricky, on account of the fact that Wall Street banks didn’t make much in the way of cash in 2011. While paying some seniors staff zero dollars is being considered, it still may not be enough to pick up the […]

    / Jan 10, 2012 at 12:54 PM
  • News

    Bonus Watch ’11: Credit Suisse

    Speculation has been going around that some employees will be receiving a whole lot of nothing.

    / Dec 14, 2011 at 4:02 PM
  • News

    Layoffs Watch ’11: Credit Suisse

    Cuts have gone down at the House of Dougan.

    / Dec 2, 2011 at 10:49 AM
  • News

    Bonus/Hiring Watch ’11: Wash U. Waiting To Catch A Break

    The good news: bank bonuses are going to be down by a lot this year, upwards of 40 percent down. If you are on the receiving end of one of these slimmed-down packages, congratulations! It (probably) means management really likes you, as evidenced by letting you keep your job,** unlike your colleagues who were replaced […]

    / Nov 28, 2011 at 12:34 PM
  • News

    Layoffs Watch ’11: Credit Suisse

    The Swiss bank sent a handful of employees to a farm upstate earlier today.

    / Nov 21, 2011 at 12:58 PM
  • News

    Credit Suisse Bonus Watch ’11: Your Voices Have Been Heard

    During bonus season last year, Credit Suisse announced that the money employees earned in 2010 would be paid out over 2011, 2012, 2013 and 2014 (all of which was subject to clawback rules). People were not thrilled! This year, in an effort to show they’ve been listening, management has announced some big changes to the […]

    / Nov 15, 2011 at 10:45 AM
  • Banks

    Layoffs Watch ’11: Credit Suisse

    The (other) Swiss bank will be cutting people and assets, so don’t take it personally.

    / Oct 31, 2011 at 2:05 PM
  • News

    Securities And Exchange Commission Not Amused By Hedge Fund Manager’s “Web Of Lies”

    Yesterday afternoon, the Securities and Exchange Commission announced that it had frozen the assets of “purported” Boston-based quant named Andrey C. Hicks. Purported because, was he actually a quant? Not so much! Other small inaccuracies in his story with which the regulator took issue, describing the total as Hicks’ “brazen web of lies”:

    / Oct 27, 2011 at 7:11 PM
  • News

    Layoffs Watch ’11: Dick Bové Suggests Girding All Of Your Loins

    Sources believe that Europe’s banking giants, including Deutsche Bank, UBS and Credit Suisse, along with Societe Generale and Dexia, are preparing to wield the ax in a way not witnessed since the depths of the financial crisis in 2008. “People will be fired everywhere,” said Dick Bove, an outspoken bank analyst at Rochdale Securities. [NYP]

    / Oct 24, 2011 at 1:06 PM
  • Banks

    Layoffs Watch ’11: Credit Suisse

    Cut today at the other Swiss Bank.

    / Oct 17, 2011 at 1:39 PM

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