Credit Suisse's New CEO Lets Investment Bank Down Easy

It's not you, it's regulation.
Author:
Updated:
Original:

Sure, Tidjane Thiam is going to shrink the thing significantly but it's not because of anything you did. You're a great investment bank, really. One of the best he's ever been with, however briefly. There's nothing you could've or should've done differently. This is just how it has to be.

“We’re dealing with a really very well-performing investment bank, but where sometimes regulation has developed in an unsupportive or unfavorable way,” Thiam, who took over in July, told analysts on a conference call Thursday after the bank published earnings. Elaborating at a news conference later in the day, he said that “part of the thinking in the investment bank is to shrink, to be able to focus on really the most value-creating businesses.” Thiam, 52, formerly the CEO of insurer Prudential Plc, said Switzerland’s second-biggest bank will allocate more capital to wealth management and seek to grow in Asia and developed markets such as its home country.

Say what you want about him, the man's a good breaker-upper.

Credit Suisse to Shrink Investment Bank, Focus on Wealthy [Bloomberg]

Related

Layoffs Watch '15: Credit Suisse Wants You! (To Help It Cut Costs By 3.5 Billion Francs)

This is not so much a request as a requirement you're unlikely to get around, unless anyone is considering chaining themselves to their desks.

Layoffs Watch '15: Credit Suisse

Analysts think the appointment of Tidjane Thiam is probably a sign big cuts are coming to IBD.

Bonus Watch '16: Credit Suisse CEOs

Like many a Credit Suisse employee, Thiam will see his bonus chopped (though in his case the slashing is voluntary).