Morning Coffee: The upside to Credit Suisse's harsh pre-bonus redundancies. Equities men take charge at Morgan Stanley

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Credit Suisse is due to disclose its fourth quarter results on February 4th 2016. Sometime on or slightly before that date, the Swiss bank will announce the bonuses it's paying investment banking staff for all their hard work in 2015. Unfortunately, nearly 2,000 Credit Suisse staff won't be around to share the good news.

Following suggestions that Credit Suisse was planning another round of fixed income redundancies before bonuses, the Financial Times now claims that Tidjane Thiam is planning to go the whole hog: nearly all the 2,000 jobs which the Swiss bank plans to cut in London, could go almost immediately. In the next week, the FT says Credit Suisse will "tell up to 1,800 London staff their jobs are at risk."

If true, then this is harsh. Thiam had suggested it could take Credit Suisse until 2018 to reach an acceptable return on equity, suggesting London staff might have been gradually phased out instead of culled all at once. The only good news is that with all these people disappearing, the 2015 bonus pool will be less thinly dispersed. This might be just as well following rumblings that the CS bonus pool is down 60% on last year.

Separately, Morgan Stanley becomes the next US bank to report quarterly results tomorrow. All eyes will be on the fixed income business, from which 25% of staff or 1,200 people were let go before Christmas. The New York Times points out that Morgan Stanley's fixed income professionals are in a particularly weak position after a 'takeover' by the bank's equities people. Ted Pick, former head of Morgan Stanley's equities trading business, was made global head of all trading last October. Last Thursday Pick appointed Sam Kellie-Smith, formerly head of global equities trading, as head of fixed income. It's abundantly clear who wears the trousers in Morgan Stanley's trading business - and it's not the fixed income professionals.


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