Credit Suisse’s Dougan Plans to Cut About 2,000 Jobs as Profit Drops 52% Credit Suisse Group AG (CSGN), the second- biggest Swiss bank, plans to cut about 2,000 jobs after second- quarter profit fell 52 percent on lower earnings from trading.
Credit Suisse dropped as much as 4 percent in Swiss trading after reporting net income of 768 million Swiss francs ($956 million), less than the 1.06 billion-franc average estimate of 16 analysts surveyed by Bloomberg. Chief Executive Officer Brady Dougan is eliminating about 4 percent of the workforce to help the bank save 1 billion francs in annual costs beginning next year, after increasing staff in 2010 to win market share. Earnings at the investment bank tumbled 71 percent as Europe’s sovereign debt crisis and concerns over the global economic outlook increased risk- aversion among clients.
“The investment bank is a catastrophe,” said Dirk Becker, a Frankfurt-based analyst at Kepler Capital Markets who put the stock “under review” today. Unit Breakdown. JPMorgan Said to Face SEC Subpoena Along With Credit Suisse. JPMorgan Chase & Co.
(JPM) received a subpoena from the U.S. Securities and Exchange Commission over failed mortgages, a person familiar with the investigation said, as the agency probes banks including Credit Suisse Group AG (CS) for allegedly failing to share refunds from sellers of faulty debt. Credit Suisse received a subpoena from the SEC last week, bond insurer MBIA Insurance Corp. said in a filing yesterday in a lawsuit against three of that Zurich-based bank’s units. The agency asked New York-based JPMorgan for information after a court in January unsealed allegations made about Bear Stearns Cos.’ practices in another suit, said the person, who declined to be identified because the matter isn’t public.
U.S. investigators have been scrutinizing companies involved in the mortgage business after the worst collapse in home prices since the Great Depression. Media - Renren’s valuation for IPO questioned. Credit Suisse hiring binge pays off as Barclays wilts. Credit Suisse Net Drops 45% on Investment Bank, Debt Charge. Barclays Plc (BARC) and Credit Suisse Group AG (CSGN), two of Europe’s largest banks, posted lower profits in the first quarter as investment-banking earnings tumbled.
Barclays fell 4.8 percent in London trading, the biggest drop since August, after saying net income declined 5.2 percent to 1.01 billion pounds ($1.67 billion) from a year earlier, missing the 1.21 billion-pound estimate of analysts surveyed by Bloomberg. Capital Markets - Credit Suisse coco investors face challenges. Credit Suisse Cuts Chief's Pay.
Credit Suisse cut the pay of its chief executive, Brady W.
Dougan, by 34 percent last year, to $14.1 million, after earnings fell in 2010. Mr. Dougan earned 12.8 million Swiss francs, including a salary of 2.5 million francs and 10.3 million francs in bonuses, pension benefits and other compensation, according to the Credit Suisse annual report released on Thursday. While overall compensation was down, Mr. Dougan’s salary doubled from 2009. “Consistent with the lower performance of the group in 2010 compared to 2009, the average total compensation for executive board members, excluding individuals who joined or left during 2010, was 32 percent lower,” the bank said. FT Trading Room / Markets Regulation - Barclays at centre of Libor inquiry. Companies / Banks - Credit Suisse caps bonus ‘clawbacks’
Companies / Banks - Credit Suisse considers bid for US securities. Credit Suisse May Beat Asia Wealth Inflow Goal, Berchtold Says. Credit Suisse Group AG (CSGN) may exceed a 2012 target for asset inflows at its wealth business in Asia after an “encouraging” start to this year, the head of the company’s private bank said.
The Zurich-based bank said in September 2009 it’s targeting 35 billion Swiss francs ($38.9 billion) to 45 billion francs in net new client money in the Asia-Pacific region by 2012. The devastation caused by Japan’s strongest earthquake won’t derail inflows, said Walter Berchtold, chief executive officer of Credit Suisse’s private banking business.
“The region has a lot of growth, and growth in wealth management is coming predominantly outside of Japan,” Berchtold said in an interview in Singapore on March 18. Dougan Embraces CoCos Gruebel Deems ‘Dangerous’ in Swiss Clash. Companies / Banks - Grübel to forgo 2010 UBS bonus. BNP Paribas Said to Hire Former Credit Suisse Japan Equities Chief Okazawa. BNP Paribas (BNP) SA, Europe’s biggest bank, will hire Kyoya Okazawa, former head of Japan equities at Credit Suisse Group AG (CSGN), to expand its equity business, two people with knowledge of the matter said.
Okazawa, 40, who resigned as managing director at Credit Suisse late last year, will start at BNP Paribas in Tokyo as early as next week, said the people who declined to be identified because he hasn’t joined yet. The bank hasn’t decided his official position in the equities department, they said. Global Economy - Credit Suisse included in US tax evasion probe. Companies - Cocos and bail-in share common goal. Capital Markets - Credit Suisse cocos issue deluged. Companies / Banks - Credit Suisse launches $6.2bn CoCos offer. Companies / Banks - Credit Suisse lowers targets as profits fall. Credit Suisse Hires JPMorgan's Khan as Head of Internet Investment Banking.
Credit Suisse Group AG hired Imran Khan, an equity analyst from JPMorgan Chase & Co., to head Internet investment banking.
Khan will be a managing director based in San Francisco and start in May, according to an internal memo, which was confirmed by Duncan King, a spokesman for the Swiss bank. He will report to David Wah, global head of technology, and Bryce Lee, head of technology in the Americas, the memo said. As an analyst, Khan covered Google Inc., EBay Inc., Yahoo! Inc. and Amazon.com Inc. Wall Street firms are competing to win mandates for initial public offerings of Internet companies such as Groupon Inc. and Facebook Inc., amid increasing mergers and acquisitions in the industry.
Credit Suisse is beefing up its technology investment banking team after George Boutros, its former chairman of technology and health care groups in San Francisco, left in April to join Frank Quattrone’s Qatalyst Partners. Khan was the head of JPMorgan’s global Internet research since 2004. The Banker Awards 2010: The Best Banks by Country. The Banker magazine awarded the annual ranking of the best banks by country for 2010 this week.
The winners were selected from more than 500 entries. The best banks were selected based on their performances over the past 12 months. The global winner for this year is UK-based Standard Chartered Bank. The winners of The Banker Awards for 2010 are shown in the graphic below: Click to enlarge Source: The Banker Some of the notable winners are: Companies / Banks - C Suisse to enforce charitable donations.
Credit Suisse Tweaks Bonus Plan.