Lunchtime Links: Credit Suisse is hammering FICC in London and building investment banking in Brazil
In the second quarter, the cost income ratio at Credit Suisse's investment bank was 91%. Ahead of the bank's third quarter results tomorrow, another round of cost cutting has been leaked.
Credit Suisse announced 2,000 redundancies in July, most of which were expected to happen in investment banking in London and the US. According to Swiss publication TagesAnzeiger, it now plans to make another 1,000 people redundant, again mostly in the investment bank.
The new redundancies follow the elimination of CHF100bn of risk weighted assets and are likely to affect capital intensive fixed income businesses disproportionately.
However, even while it slashes its fixed income operation, Credit Suisse is reportedly building up its emerging markets franchise. In particular, Tages Anzeiger says it will announce a Brazilian offensive when it reveals its Q3 results tomorrow. Transferring from London to São Paulo is likely to be out of the question.
Of the 14 senior managers named in November 2008 to run BAML's markets division under Montag, six have left the firm, four have moved internally, and four are still in place. (Financial News)
84% of FSA staff got a bonus last year; 9 got more than 50k. (FT Advisor)
Traders at Royal Bank of Scotland's investment banking operation are being paid an estimated 75p for every 1 of sales they make for the company. In the 3rd quarter, this could be as high as 90p. (Sunday Times)
George Osborne, chancellor, needs the tax receipts on bonuses. He would bag 2.5bn of the estimated 4.2bn pot. (Financial Times)
Wolfgang Schäuble, Germany's finance minister, wants the European Union to take the global lead in introducing a financial transaction tax. (Financial Times)
An 'elegant and cheerful' equities broker in her 40s speaks very frankly to the Guardian. (Guardian)
Ken Costa: I have been in the City since before the Big Bang whose 25th anniversary came this week. I have been through several recessions but I cannot recall the underlying sustained anger across all social levels - from dinner parties to demonstrations - aimed at bankers and the market economy as a whole. (Financial Times)
Ring of prayer to protect Occupy Protestors at St Paul's. (Guardian)
Vikram Pandit and John Thain are in the bottom 90%. (New York Times)
