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Credit Suisse confirms 50% bonus cut, Zero for Exec, amid terrible results
- thwayunion 4y agoCredit 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.
- uejfiweun 4y agoCould they potentially collapse? Or are they too big to fail as well? Not sure how it works when it comes to non-US megabanks.
- toomuchtodo 4y agoToo Big To Fail. Swiss government will prop them up. https://www.reuters.com/business/finance/swiss-govt-proposes-public-liquidity-backstop-big-banks-2022-03-11/ https://www.reuters.com/business/finance/swiss-govt-proposes...
- JumpCrisscross 4y ago> 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.msg-id-87574.html https://www.efd.admin.ch/efd/en/home/the-fdf/nsb-news_list.m... [2] https://www.ecb.europa.eu/pub/pdf/other/ecb.agreementemergencyliquidityassistance202012~ba7c45c170.en.pdf?dca797da3212289956ac24df607eb168 https://www.ecb.europa.eu/pub/pdf/other/ecb.agreementemergen...
- toomuchtodo 4y agoI will bet you an adult beverage of your choice if push comes to shove, they will rescue CS.
- JumpCrisscross 4y ago> if push comes to shove, they will rescue CS Depends on the circumstances. If they manage to take someone else (read: UBS) down with them, probably. If they blow up on their lonesome, probably not.
- esotericimpl 4y ago[dead]
- nik736 4y agoThey will collapse sooner rather than later and the gov has to save them
- deleted 4y ago[deleted]
- dmurray 4y agoCollapse 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.
- akiselev 4y ago> On trial for cocaine dealing. #1 rule of banking: never get high off your own supply.
- moralestapia 4y ago>On trial for cocaine dealing. https://www.reuters.com/business/finance/court-convicts-credit-suisse-money-laundering-case-2022-06-27/ https://www.reuters.com/business/finance/court-convicts-cred... "A former employee was found guilty of money-laundering in the trial, which included testimony on murders and cash stuffed into suitcases [...]" Whew!
- roundandround 4y agoThis article needs layoffs, is there a TLDR?
- thwayunion 4y ago"The 80s are back, baby: bank loses all income, gets arrested for cocaine dealing, staff forced to choose between porsche and slip fees"
- andrewstuart 4y agoThey'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.
- nxm 4y agoColleague worked in the London office at Credit Suisse and all exotic car dealerships had cars lined up for sale outside the office on bonus day in early 2000s.
- deleted 4y ago[deleted]
- conductr 4y agoTrickle down economics at its best
- mrguyorama 4y agoShouldn't other companies be wary of hiring traders from a firm with such terrible results?
- nxm 4y agoHow much is it the trader and how much is it the company? Hard to gauge
- SeanAnderson 4y agoSo, is Credit Suisse considered "too big to fail?" If no, are there any ramifications if it were to collapse? It seems like the writing has been on the wall for a while now, so I would hope preparations have been made and it would not be catastrophic, but it's honestly a little crazy to see a ~170 year old institution getting this close to shuttering.
- nxm 4y agoIt’s a source of pride for the Swiss, and hence Swiss government won’t let it fail no matter how poorly it’s managed.
- tdrz 4y agoSo true, I just wonder how will they package it for the voters.
- microtherion 4y agoThere may be Swiss people proud of Swiss banking as an abstract concept, but I'd be surprised if much of that extended to Credit Suisse in particular as a concrete bank. Given that the overall economy is quite good, there might be a certain appetite even in business friendly circles to let a badly run bank fail pour encourager les autres, but its size would make such a failure fairly difficult to handle.
- sschueller 4y agoI don't think so. Maybe some banks but not CS and not UBS. In fact you may as well rename "Credit Suisse" to "Credit Saud" at this point.[1] [1] https://www.swissinfo.ch/eng/business/-just-another-cheque---saudi-national-bank-s-move-into-credit-suisse/48130728 https://www.swissinfo.ch/eng/business/-just-another-cheque--...
- c7b 4y agoIn theory, there exist firm plans to do an orderly resolution that can result in a market exit should the bank not be able to survive: https://www.finma.ch/en/enforcement/recovery-and-resolution/too-big-to-fail-and-financial-stability/banks%E2%80%99-recovery-and-resolution-planning/ https://www.finma.ch/en/enforcement/recovery-and-resolution/... In practice, it'll be interesting to see.
- rqtwteye 4y ago“ 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.
- sharkweek 4y ago“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.” https://youtu.be/xW1CrQu_H6E https://youtu.be/xW1CrQu_H6E
- alyandon 4y agoYeah, .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.
- yamtaddle 4y agoI 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.
- huntertwo 4y agoMost 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.
- GalenErso 4y ago> 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.
- _2d30 4y agoCS has been the worst IB in the industry for years. Really embarrassing for the Swiss.
- lordnacho 4y agoWorked 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.
- Wonnk13 4y agoI did some consulting work for them in the Canary Wharf office back in maybe 2016?-ish. Even then it was clear the firm was in free fall- I've never seen anything like it and that's all I'll say.
- bogomipz 4y agoRelatedly: "Crooks, kleptocrats and crises: a timeline of Credit Suisse scandals" https://www.theguardian.com/news/2022/feb/21/tax-timeline-credit-suisse-scandals https://www.theguardian.com/news/2022/feb/21/tax-timeline-cr...
- honkler 4y agomany commenters say CS is too big to fail. I wonder if the Swiss government would do a referendum on this.