Credit Suisse also shows there's been absolutely no point hiring in sales and trading this year

Yesterday, Morgan Stanley revealed some nasty results in sales and trading.

Today, Credit Suisse, has done the same.

Like Morgan Stanley, Credit Suisse has been having a little hiring party. In March, it announced plans to recruit 130 people, mostly in front office FICC positions. That hiring's mostly complete. And Credit Suisse's sales and trading revenues are down 41% year-on-year.

Morgan Stanley and Credit Suisse are making surprisingly similar noises about their failure to deliver.

During yesterday's conference call, James Gorman said Morgan Stanley's FICC build out would, "take a little time to root itself," and that it was not something, "that's going to happen in any 13 week period."

And in today's Credit Suisse conference call, Brady Dougan said benefits from this year's hiring are only starting to, "flow now," and that they wouldn't really expect to see any benefit until 2011.

After a dire July, a seasonally weak August, and a vaguely improved September and October, the question is whether investors will be willing to wait.

In total, Credit Suisse has hired 1,900 people into its investment bank over the past 12 months; net income is down 77% year-on-year. At the same time, the cost income ratio in the business has risen to 89% for the past nine months, up from 65% a year previously. The bank has also taken more risk to achieve these dubious results: VaR was up 31% y-o-y in the third quarter.

It's already being suggested that Credit Suisse might want to lop off a few more staff. "It looks like business has simply over-expanded and needs to contract, and quickly given the low level of client activity," Peter Thorne, an analyst at Helvea told the Wall Street Journal. Morgan Stanley may also want to take note.