Unfounded Rumor Of The Afternoon: Cuts A-Comin' At Credit Suisse?

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Prop trading at Credit Suisse plans to cut around 30% of traders in the near term.

Most of the prop accounts are flat or down for the year, except for the trade "front-running" index rebalance. At 2008 CS prop. was down around 2 billion, 2009 was better, but now apparently upper management realized that these guys don't really have an edge. CS prop. run by Bob Jain - nice, but clueless guy. Pnl of the accounts managed by him personally was consistently negative in the range -20m /-50m per year, before the year end he usually tried to spread around his losses to accounts that were up for the year, claiming he did macro hedging. Pretty entertaining.

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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).