Credit Suisse Layoffs - Dealbreaker?
Just hit dealbreaker, anyone have word on this?
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I just left work at a large universal bank (think JPM/BofA/Citi) in the asset backed securitization group. The rumor mill from my former co-workers is that layoffs will be coming over the next week or two. Even if this is pure speculation on their part, I think everyone in that part of the investment banking world expects significant downsizing and reorganization for a lot of capital markets groups, particularly ABS/MBS groups and any mortgage related desks. You will be seeing a lot of these announcements in the near future...
According to DealBreaker, JPM told people in the 2007 Leveraged Finance class that some people would be let go.
Credit Suisse Layoffs - Opinions? (Originally Posted: 07/28/2011)
Credit Suisse cutting 2000 jobs, what are your opinions on this and how it will affect banking hiring / firing in general?
rumours going around that a few BB and MM firms are about to implement hiring freezes in NY....im not sure if this has been done yet. All in all, this is a very scary signal. It almost seems like they are "battening down the hatches" for a significant downside in markets as well as the economy. Same thing ive been noticing with insider selling/buying ratio over the past few months. It looks as if smart money is heading for the exits.
One of my good friends has extensive connections at credit suisse, and he confirmed that it's going to get VERY ugly. The banks overhired after the financial collapse because they anticipated a quick strong recovery. But now we know that's unlikely, and the banks are beginning to slow things down considerably.
How about the future of FICC trading at the BBs? Apparently CS experienced 59% less revenue in their FICC departments compared to Q2 2010 and this was a big reason for their poor performance. Does trading have a major role in the future of banking or willl deals rule everything?
Credit Suisse is actually one of the most fucked companies on Wall Street. Don't be surprised if they cut 66% of their staff globally.
This. Based on my contact with their sell side analysts, they are horribly screwed.
I told this story on another thread but it's worth repeating:
An MD at a smaller sell side research shop, who was a former MD and head of sector research at Credit Suisse, told me when we had him into the offices a few weeks ago this anecdote:
"CS had two analysts leave one team in a single day, leaving the firm screwed from the point of view of that sector, because they issued bonuses. On a salary of $125k the analysts made SIX THOUSAND DOLLAR BONUSES."
Now, you might be thinking "6 grand isn't that bad when you're making $125k." True, but realize a 4.8% bonus is lower than most operations personnel at these companies. I know sell side analysts 1-2 years in that got 30-40% bonuses from much smaller shops in the last year.
4.8% is a joke and a clear sign that CS: 1) doesn't regard its research arm as very important and 2) is in some dire straits.
Graduating in 2012 is going suck :(
Not as bad as it was when i graduated in '08. Good luck bud.
what struck me about CS was excepting commodities were NO high points in their performance. Add in the CHF and I'm inclined to agree with lavak3.
I feel like since WSO really became a much larger community (2008 and on), all we've had is bad news -- will be interesting to see what happens if we ever return to the bonuses and hiring of 2004-2007...
Word to what the other people said about graduating in 2012. Will banking ever recover? haha
How could this affect someone graduating in 2013 who's looking for summer SA positions?
this is part of a long term trend in finance. the pendulum is swinging the other way and will in the short-medium term. i wouldn't really look at this as a year to year phenomenon.
Anyone know where the layoffs will be concentrated? Research has been mentioned, but how about IBD and trading?
you're all so fucked
Hate To Perpetuate Rumors But...Credit Suisse SAs? (Originally Posted: 08/16/2008)
Did you all in Sales and Trading really get screwed over as bad as I am being told by friends?
I've been told the FT offer rate was less than 50% with FI really getting kicked in the balls.
Crazy...
Yeah I heard less than 25% got offers in FI
I heard its the same with GS S&T... s&t is getting crushed everywhere
~25% is what I have heard as well
cs fixed income
5 out of 22 got offers... ...very competitive
"I heard its the same with GS S&T... s&t is getting crushed everywhere"
I thought GS didn't extend offers until Sept/Oct?
GS date is Sept. 5
GS hasn't extended offers yet, but I have a feeling their offer rate is also going to be less than 50%
my BB S&T class was roughly 50%, a little less. GS will probably be far lower since they hired many more SAs. I heard they had like 150 plus in S&T whereas my BB had 40ish. BTW CS FI is usually one of the more competitive summer programs anyway.
GS had 150+ interns? Um...wow...Why would they hire that many SAs for S&T? To just pick the strongest out of a wide group? Even then...if this is true, 150 seems excessive.
What bank were you at? Feel free not to answer. I understand if you want to maintain some privacy.
I know that UBS is going through a structuring phase. How many of their S&T SAs will be hired? Anyone have an insight on this?
GS had ~175 interns; about 150 of them competing for entry level analyst positions. Take a rotation like commodities... 12 interns, they took ONE kid. HR really screwed interns over. I guess they are just picking the best and brightest. Seriously though, I'm sure they had offers from multiple places and went to GS thinking they had a serious shot at a job, when in reality odds were heavily stacked to begin with.
So you're saying that GS has in fact given offers out already? I was under the impression it was some time in September.
EDIT: Ah Ok just saw the previous poster's comment. Interesting.
I was at GS this past summer in Sales and Trading and actually trying to get a job in Commodities. Its true that they had 12 kids rotate through and strong interest from probably 4-5 more so about 16-17 kids total. Its also true they're looking at hiring 1, maybe 2, but they haven't actually decided yet. But full disclosure, they let you know if you weren't in the running so you had elsewhere to look in the firm to get a job. They cut it down at the end to a top group of 3 who they were looking to hire 1-2 kids from.
Honestly though, with the exception of a few people in the rotational program and the placed desk people (obviously), I was really unimpressed by the pool of interns at GS. Most seemed to barely know what they were talking about and were just weak candidate in general. Even with a 25% rate in S&T they would still pull in some of unqualified hires.
for CS S&T, i heard:
about 1/3 got Yes, 1/3 got No, 1/3 got Hold.
Brutal...
My firm's S&T offer rate this year is around 60%.
Yeah that sounds about right, untitled.
Talked to my friend who was in S&T he said it was roughly 40%.
Where did you work, untitled? Feel free to not answer.
"Where did you work, untitled? Feel free to not answer."
lol, i have nothing to hide. you can track my posting history anyway. i did a trading gig at BarCap. the S&T guys got offers last friday and IBD guys the friday before that.
about 60% in each of the three divisions.
Does anyone know when and what percentage will be given offers to sa's at DB (New York)? Thanks
Not sure,
So who has not told SAs yet?
Morgan Stanley and Goldman Sachs, correct?
Who else?
JPM, Lazard, Blackstone, Citadel and KKR have given out offers.
Ouch folks - tough market for sure. ML has their freeze so wonder what's that's going to do.
S&T is tough with these types of markets.
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