Thu, Jun. 2, 7:20 AM
- In the latest effort by an investment bank to improve the quality of work/life balance for its staff, Credit Suisse (NYSE:CS) launches "Protecting Friday Night," an effort to get workers out of the office by 7 PM and not return until at least lunchtime on Saturday ... unless, of course, a big deal is in the works (a humble editor now remembers clearly why he rejected offers to join IB training programs when graduating from college).
- Previously: UBS to its bankers: "Take two" (June 1)
Wed, May 25, 10:28 AM
- About half of all share sales by public companies this year have been block trades, writes Corrie Driebusch, versus an average of about one-third over the past five years, and just one-fifth over the past decade.
- To review, a block trade involves a bank buying a large chunk of stock from a company or its P-E backers at a discount, in the hopes of unloading it piece-by-piece later that day at a markup.
- The increase in block trades, of course, comes as business slows at any number of other bank profit centers, particularly fixed-income trading.
- For the most part, block deals have mostly proved profitable this year, with an average one-day return of 0.5%, according to Dealogic. The leaders in U.S. block trades this year are Credit Suisse (NYSE:CS) and JPMorgan (NYSE:JPM), with Deutsche Bank (NYSE:DB), Bank of America (NYSE:BAC), and Citigroup (NYSE:C) also notable participants.
Mon, May 23, 3:10 PM
- The ruling from the Court of Appeals for the Second Circuit reinstates previously thrown out private antirust lawsuits against 16 banks for allegedly rigging Libor.
- There are a number of groups of plaintiffs, including Baltimore, Houston, and San Diego.
- For now, the case goes back to lower court for further proceedings. If the suits are successful, the bill to banks could be several billion dollars.
- Roughly a dozen financial companies have already settled official charges of rate manipulation, with some pleading guilty to criminal charges.
- The defendants in line from today's ruling include: Bank of America (NYSE:BAC), Barclays (NYSE:BCS), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), HSBC, JPMorgan (NYSE:JPM), Lloyds (NYSE:LYG), Royal Bank of Canada (NYSE:RY), SocGen (OTCPK:SCGLY), UBS, and Royal Bank of Scotland (NYSE:RBS).
Tue, May 10, 11:29 AM
- Revenues were even lighter than expected and management's outlook was cautious, but stable capital ratios and good progress on expense cuts and overall downsizing are positives, say analysts.
- There's also the stock price - down more than 50% since late last summer suggests a lot of bad news has been priced in.
- Vontobel's Andreas Venditti says the outlook - though not unexpected - is unusually cautious, and may just be new management setting a low bar. After such a bad start, it's likely to turn out to be a very bad year for the bank.
- CS is higher by 3.5% today.
- Previously: Credit Suisse Group AG reports Q1 results (May 10)
Tue, May 10, 8:27 AM
Tue, May 10, 2:39 AM
- Credit Suisse (NYSE:CS) swung to a 302M Swiss franc net loss, as it plowed ahead with restructuring its investment bank, and cautioned that subdued market conditions could continue into Q2.
- Hit by a lower demand in mobile networks, Nokia (NYSE:NOK) reported a net loss of €513M, warning of further cuts and layoffs after the €15.6B acquisition of Alcatel-Lucent.
- SoftBank's (OTCPK:SFTBY) quarterly profit plummeted more than 36%, as turnaround efforts continued at Sprint, the struggling wireless carrier it bought in 2013.
- ING posted a 29% fall in Q1 profit, blaming the drop on higher regulatory costs in Europe and weakness in its financial markets unit.
Mon, May 9, 5:30 PM| Mon, May 9, 5:30 PM | 1 Comment
Fri, May 6, 5:37 PM
Fri, May 6, 11:24 AM
- Another three former employees have been identified as suspects in a Swiss probe into unauthorized trades by Credit Suisse (CS -1.5%) in accounts of rich eastern Europeans, reports Bloomberg.
- The growing scandal is yet another headache for the bank as tries to get on the other side of a major restructuring without turning off all of its investors.
Fri, May 6, 9:11 AM
Wed, May 4, 4:27 AM
- Credit Suisse (NYSE:CS) has agreed to sell a big chunk of distressed assets, helping to speed the Swiss bank's retreat from risky trading businesses.
- TSSP, an investing affiliate of private-equity firm TPG, will pay about $1.27B for a stake in the portfolio that includes 270 bonds, loans and other instruments.
- As part of the deal, Credit Suisse plans to take a charge of about $100M, most of which will be reflected in its first-quarter results.
Wed, May 4, 2:49 AM
- Seven of the world's largest banks have agreed to pay $324M to settle a U.S. lawsuit accusing them of rigging the "ISDAfix" benchmark for their own gain from 2009 to 2012.
- The illegal deals included the execution of rapid trades just before the rate was set each day, called "banging the close," to delay transactions and post rates that did not reflect market activity.
- The settlement resolves claims against BofA (NYSE:BAC), Barclays (NYSE:BCS), Citigroup (NYSE:C), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), JPMorgan (NYSE:JPM) and the Royal Bank of Scotland (NYSE:RBS).
Thu, Apr. 28, 3:35 PM
- According to the WSJ, current and former executives at Credit Suisse (CS +0.1%) are arguing over who was responsible for nearly $1B of recent trading losses.
- The dissension is further complicating the restructuring task of CEO Tidjane Thiam. He will face shareholders tomorrow at the bank's annual meeting, with the stock down 41% since he took over in July.
- The issue came public in March, when the bank announced big losses in its securitization unit. Former execs point to appointment of Timothy O'Hara to oversee the global markets unit, and the exit of Gaël de Boissard as the global head of fixed income.
- They note confusion over the precise chain of command as O'Hara reorganized his team. Meanwhile, Thiam and his team have whispered that the affair is the result of mistakes by previous management. Mr. de Boissard, tells the Journal that his power ended on Oct. 21, and his only role at the bank after was in handing off responsibilities to the new team.
Mon, Apr. 25, 1:13 PM
- "There's been some friction, but they're headed in the right direction," says Harris Associates CIO David Herro. He tells Bloomberg his firm has taken advantage of declines to boost its holdings in the bank.
- Credit Suisse (CS -2.7%) is lower by 30% YTD amid a sizable restructuring undertaken by newish CEO Tidjane Thiam.
- "When you have these changes it’s not often pretty,” cautions Herro. Harris Associates was the bank's largest shareholder at year-end, with just more than an 8.5% stake.
Thu, Apr. 14, 11:59 AM
- Credit Suisse's (CS -0.5%) chairman of the Americas and former bank board member Robert Shafir, 57, is planning to leave the bank at the end of June, reports the WSJ.
- Shafir joined Credit Suisse in August 2007 and was a member of the executive board until last October when the bank's new CEO unveiled his restructuring plans. Shafir had apparently confided to some even before then that he was planning to leave.
- Among the possibilities for his next stop is some sort of boutique financial firm with former Credit Suisse CEO Brady Dougan.
- Now read: European Investment Banking: A Hard Sell
Fri, Apr. 8, 2:45 PM
- According to a LinkedIn analysis done for the WSJ, analysts and associates who exited investment banks in 2015 had stayed an average of 17 months vs. 26 months a decade ago. Going back another ten years, the average tenure was 30 months.
- Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), Citigroup (NYSE:C), and Credit Suisse (NYSE:CS) are among the banks altering age-old traditions for young bankers - crazy-long hours of drudgery, slow advancement - to better suit the attitudes of this particular generation of worker bees.
- “We’re focused on trying to understand what’s important to the folks we hire right out of school,” says John Waldron, co-head of investment banking at Goldman.
- "Every day I can see the direct result of my action," says an ex-employee of Moelis (NYSE:MC), who gave up all-nighters preparing pitch books for the boutique investment bank to instead work for a mobile-gaming startup.
Credit Suisse Group AG operates as a financial services company, which provides investment banking and advisory services. The company operates through two segments: Private Banking & Wealth Management; and Investment Banking. The Private Banking & Wealth Management segment offers comprehensive... More
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