Lunchtime Links: 1,600 job cuts coming at Credit Suisse? Public email humiliation at Goldman Sachs
This is the week in which Swiss banks are expected to reveal their enormous cost cutting initiatives.
UBS, is predicted to slash earnings targets and cut up to 5,000 jobs across divisions (albeit mostly in the back office).
According to Swiss publication Finnews, Credit Suisse is expected to cut another 1,600 jobs across investment banking, private banking and operations. Only 500 of the cuts are expected to come in Switzerland and a disproportionate number may come in trading, where CS has allegedly had a particularly bad second quarter.
Separately, the New York Magazine has published a long interview with and profile of Lloyd Blankfein, in which he is described as a misunderstood Woody Allen-esque creature unable to resist the (occasionally inappropriate) one- liner.
The profile, which also includes an interview with Gary Cohn, says Goldman hasn't dismissed anyone over its deteriorating public profile because it feels the situation is beyond any individual's control. And it reveals that:
'...compliance officers stage annual dramatic readings of their employees' most embarrassing e-mails to drive the point home.
These emails apparently include 'stuff like': 'Are you wearing lingerie?''
European banks are going to announce some big redundancies this week. (Financial Times)
Up to one in four staff at the UK's mid-cap brokers could lose their jobs over the summer months, according to senior industry figures. (Financial News)
A new European directive is saying that institutions should publish the number of staff paid more than €1m each financial year and break the pay deals down into bands of €500k. (Guardian)
A portrait of Gary Cohn. (Bloomberg)
In late June, dealers say Morgan Stanley took a short position in 30-year Tips estimated at between $3 billion and $4 billion, coupled with a long position in five-year and 10-year Tips. For the trade to work, the June 23 auction had to fall flat. In fact, it was a roaring success. (Risk)
Guy Shahar, the former co-head of equity derivatives trading at Goldman Sachs, is setting up a hedge fund called DSAM Partners. (Financial News)
The European Banking Authority is to study how banks should balance the level of bonuses versus salaries, reviving the spectre of an imposed. (Reuters)
80-90% of the moves in bank share prices this year can be explained by reference to sovereign bond spreads. (Financial Times)
Obama is being briefed by senior officials on the consequences of default on Wall Street, and major banks and institutions are laying the groundwork for survival investment strategies. (Guardian)
The real elephant in the room is BAC precarious close to completely breaking down. (Zerohedge)
George Osborne hinted that he might prioritise the abolition of the "temporary" 50p top rate of income tax. (Financial Times)
