Morning Coffee: Shock redundancies at Credit Suisse. Equity researcher who left to teach maths quietly returns

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If redundancies are going to occur anywhere in the final quarter they should surely hit banks' fixed income trading businesses, which haven't been doing too well. By the same logic, equities businesses should be fine - as Deutsche Bank pointed out yesterday, revenues in its equities sales and trading operation were up 30% in the first half of this year.

Credit Suisse, however, is going against the grain.

Bloomberg reports that Credit Suisse is preparing for job cuts in its European equities division. The Swiss bank has reportedly emailed staff in Europe to inform them that a redundancy consultation exercise is underway, the results to which will be available over the next few weeks. Surprising? Yes - to the extent that revenues in Credit Suisse's equities business rose by 24% year-on-year in the second quarter and by 8% in the first half. As at Deutsche, Credit Suisse's fixed income business performed far worse (revenues down 37% year-on-year in the second quarter). But Credit Suisse has already cleared out a lot of senior fixed income staff and the bank needs to save $4.8bn by the end of 2014. No one's safe.

Separately, a former Credit Suisse equity researcher who left the bank in 2011 to build a new life away from the City in the dusty world of secondary school maths teaching has quietly returned on a purely temporary basis. Financial News reports that Jonathan Pierce, the former head of the banks team at Credit Suisse is joining Exane "for a few years." When Pierce left equity research two years ago, he said he was looking forward to 15 week holidays in the teaching profession. Unfortunately, long holidays don't pay the bills. Pierce reportedly plans to go back to teaching. He just wants to spend a few years analyzing banks again first.


George Osborne is taking on the EU and mounting a legal challenge against the bonus cap. (Financial Times)

Citigroup is dumping expat bankers in Moscow and hiring some proper Russians. (Bloomberg)

It’s not just Credit Suisse: Barclays is pulling out of wealth management markets too. (Financial Times) 

Deutsche Bank is trying to excite interest in a multi-dealer U.S. bond trading platform. (Bloomberg) 

Lloyd Blankfein: "If we hadn't paid our people we wouldn't have had a stable population at the firm. I work at the company. I don't own it. I'm not entitled to blow it up" by not paying bonuses.” (CNBC)

Life is tough enough over here without having to guess the Libors every morning and get zipper-de-do-da. (Bloomberg) 

Any Libor that Lord Libor predicted would become the actual Libor. (Bloomberg) 

The unedited Libor transcripts. (New York Justice Department)  

I have seen bankers pass around photos of their car, of the upholstery, of the sound system. Having your own driver is a crucial status marker. (The Guardian) 

When aggravated pimping charges are no hindrance to a resurgent banking career. ( 



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