Morning Coffee: Secret chaos at Credit Suisse. J.P. Morgan's new MDs are saying something special

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You know it's time to give up on banking when the people who walked away five months ago seem to be having a much better time than the people who stayed. This is the way of things at Tidjane Thiam's Credit Suisse.

The Wall Street Journal suggests that life has been chaotic at the house of Thiam. Most chaotic of all has been the leadership of the fixed income division, where things have been a little vague. Upon arrival, Thiam got rid of the incumbent, Gaël de Boissard, and promoted Timothy O’Hara in his place. De Boissard left in December 2015, but says he had no real duties from the end of October. O'Hara, however, didn't assume complete oversight of the trading unit until April 2016.

That left plenty of time for things to go wrong. They duly did. Credit Suisse, needless to say, made $1bn in losses in the first quarter. Thiam blamed these on his traders, whom he said hadn't informed him of their exposures. However, the WSJ implies this was mostly due to his own poor management of the situation.

There are appears to be considerable ill-feeling inside Credit Suisse as a result. The Journal reports that some traders have been contemplating using their Credit Suisse shares to vote against the bank's board at the AGM this Friday. Others were jubilant at the prospect of the Wells Fargo takeover which never materialized.

De Boissard, meanwhile, is fine. Since leaving Credit Suisse in December, he's been on a five month skiing trip and has just returned from Greenland.

Separately, Business Insider has obtained a full list of J.P. Morgan's 120 new MDs. It says one thing: IBD. 29 of J.P. Morgan's new managing directors are in the investment banking division. This compares to five in global macro (rates and FX), three in global spread (credit) and seven in equities.


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