CS has been the worst IB in the industry for years. Really embarrassing for the Swiss.
Credit Suisse confirms 50% bonus cut, Zero for Exec, amid terrible results
21–30 of 48 posts
Re: Credit Suisse confirms 50% bonus cut, Zero for Exec, amid terrible results
#22“ It has, however, increased salaries.” These guys can’t lose. They either win or win big time even while running their company into the ground. Time for some government bailouts so they can go on a luxury retreat like AIG execs did in 2008.
Most of their compensation does not come from salaries - especially at the exec level. Nor is Credit Suisse going down going to affect normal people or the greater economy. This is not a win for execs, this is a way to placate employees despite half their bonuses disappearing.
> Nor is Credit Suisse going down going to affect normal people or the greater economy.
Really? They have 50,000 employees and two million clients.
Re: Credit Suisse confirms 50% bonus cut, Zero for Exec, amid terrible results
#23“ It has, however, increased salaries.” These guys can’t lose. They either win or win big time even while running their company into the ground. Time for some government bailouts so they can go on a luxury retreat like AIG execs did in 2008.
“I’ve been at this bank for 10 years and I’ve seen some things you wouldn’t believe. But when all is said and done these guys do not lose money.
They don’t care if everyone else does but they don’t lose.”
Re: Credit Suisse confirms 50% bonus cut, Zero for Exec, amid terrible results
#24“ It has, however, increased salaries.” These guys can’t lose. They either win or win big time even while running their company into the ground. Time for some government bailouts so they can go on a luxury retreat like AIG execs did in 2008.
I hate this simplistic attitude so much. Okay how do you expect the bank to "pull itself by the bootstraps" and not rely on a govermnet bailout? Do you expect bright employees to stay on board or flock in and fix things out of the kindness of their hearts? They have to pay people to keep things from getting worse. And yes they could get worse.
Re: Credit Suisse confirms 50% bonus cut, Zero for Exec, amid terrible results
#25Credit Suisse is in free-fall. Down 83% in fixed income sales and trading. Down 95% in equities sales and trading. Down by half in M&A. On trial for cocaine dealing. A bank losing all its income and going down in a criminal probe into a coke dealer. It'd be a good SNL skit if there weren't so many lives on the line. It's amazing a bonus pool exists at all.
> On trial for cocaine dealing.
#1 rule of banking: never get high off your own supply.
Re: Credit Suisse confirms 50% bonus cut, Zero for Exec, amid terrible results
#26Earlier quoted context omitted.
Could they potentially collapse? Or are they too big to fail as well? Not sure how it works when it comes to non-US megabanks.
Too Big To Fail. Swiss government will prop them up. https://www.reuters.com/business/finance/swiss-govt-proposes...
> Swiss government will prop them up
Unlikely. The article describes a lender-of-last-resort mechanism more than a bail-out [1]. It comports with the EU's ELA [2]. It's an exorbitant privilege, for sure, but not TBTF.
[1] https://www.efd.admin.ch/efd/en/home/the-fdf/nsb-news_list.m...
[2] https://www.ecb.europa.eu/pub/pdf/other/ecb.agreementemergen...
Re: Credit Suisse confirms 50% bonus cut, Zero for Exec, amid terrible results
#27Credit Suisse is in free-fall. Down 83% in fixed income sales and trading. Down 95% in equities sales and trading. Down by half in M&A. On trial for cocaine dealing. A bank losing all its income and going down in a criminal probe into a coke dealer. It'd be a good SNL skit if there weren't so many lives on the line. It's amazing a bonus pool exists at all.
Could they potentially collapse? Or are they too big to fail as well? Not sure how it works when it comes to non-US megabanks.
Collapse as a business, sure, but its portfolio probably won't go underwater. It's failing in a different way from a bank that takes on too many bad loans and can't fund its liabilities.
A merger with UBS was mooted once. Now it looks more likely UBS is waiting for it to fall completely and pick up the good bits on the cheap.
Re: Credit Suisse confirms 50% bonus cut, Zero for Exec, amid terrible results
#28They're talking in percentage terms because you'd be shocked if they were talking cash. Traders get million pound bonuses. or more. Goodness knows what a bonus is worth, but I'd be extremely happy with 50% of whatever it is. It might seem odd to be paying bonuses at all, but to be fair, mega bonuses are part of the culture of share trading and if you have no bonuses then you have no traders, they'll go elsewhere.
Shouldn't other companies be wary of hiring traders from a firm with such terrible results?
Re: Credit Suisse confirms 50% bonus cut, Zero for Exec, amid terrible results
#29“ It has, however, increased salaries.” These guys can’t lose. They either win or win big time even while running their company into the ground. Time for some government bailouts so they can go on a luxury retreat like AIG execs did in 2008.
Yeah, .gov to the rescue. I am still kicking myself to this day I didn't throw money into AIG when it was trading around $1-2 per share. I did make out decently off BoA stock in the same time period though.
I bought a little at the low (but didn't have much money to play with at the time, so we're talking extremely small potatoes all around) but also put quite a bit (relatively) into Freddie, reckoning they'd also pop back plenty fast with government intervention.
Whoops.
Re: Credit Suisse confirms 50% bonus cut, Zero for Exec, amid terrible results
#30CS has been the worst IB in the industry for years. Really embarrassing for the Swiss.
Worked with them, know a bunch of people who worked there. Never heard anything positive. Absolutely every person I talk to thinks it's an awful institution.