Last year, Credit Suisse decided to get out of a business that wasn’t making it any money—and occasionally lost it a very great deal. The business was that of providing prime brokerage services to hedge funds and family offices and such, and since the Swiss wouldn’t or couldn’t find a new home for that business like Deutsche Bank did, well….
Credit Suisse is starting the year on a sour note, with the bank disclosing Monday that 69 New York staffers will be shown the door…. Layoffs at Credit Suisse will begin March 6, according to a filing with the New York state Department of Labor, and the prime services division will close by August.
Luckily for those unlucky 69, they’ve gotten their walking papers at perhaps the most fortuitous moment in history for the laid off, a time when people are voluntarily leaving their jobs in droves, new jobs are springing up everywhere, and even Jamie Dimon finds himself forced to accept that the snowflakes these days just need more time at home.
Banks are confronting the reality of a tight labor market and emboldened employees. Managers tasked with making sure employees are in the office are reluctant to go through the logistical trouble of firing and replacing hordes of workers. Companies such as Citigroup Inc. that have more flexible work-from-home policies are touting them as a way of attracting people from other banks…. In meetings, Mr. Dimon has questioned those executives who are logging in remotely about why they are home, some of the people said. But he accepts that some staff won’t work five days in the office going forward, one person said.
BNP Paribas has shifted 900 Deutsche Bank staff across to its business as it draws a line over the acquisition of the German lender's shuttered prime services and electronic equities business.
The French bank has now completed the transfer of technology, employees and clients related to Deutsche Bank's prime finance and electronic equities unit, the two banks said in a statement.
And, you know, they just might welcome some of those 69 soon-to-be-former-Credit Suissers, as well.
Credit Suisse has also agreed a deal to recommend its hedge fund clients to BNP Paribas in November.
Credit Suisse to lay off New York employees as it shuts hedge fund division [Crain’s New York Business]
BNP Paribas transfers 900 Deutsche Bank staff as prime services deal completes [FN]
Omicron Pushes Wall Street Toward Work-From-Home Future [WSJ]
Private job growth hit 807,000 in December, more than double expectations [NBC News]
More quit jobs than ever, but most turnover is in low-wage work. [NYT]