The rate exit, Credit Suisse edition
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Word reaches us that the Credit Suisse axe will swing on Wednesday, with 50 heads to roll in the rates division as it bears the greatest brunt of cuts to fixed income, credit and commodities trading.
The Swiss bank has followed the lead of UBS in deciding that core fixed income trading is just too expensive, now that the whole flight to safety trade is over and lucrative over the counter business is dwindling.As the FT reported last month:
Regulators around the world have raised capital requirements in the wake of the financial crisis and this, combined with subdued markets and a move towards central clearing, has prompted banks to rethink how they run their debt trading.
The 50 jobs are out of 65 overall, and as Reuters wrote last week, fall mainly in sales and trading.
With Goldman forcing FICC compensation ever lower as revenues stagnate, we suspect this is not the last round of cuts. An interesting bonus season lies ahead.
Related Link:
As good as Goldman? – FT Alphaville
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