Layoffs, Week of 2/26/09: GS, JPM, MS, BofA-- Will We Recover?

http://uk.reuters.com/article/bankingfinancial-SP/idUKBNG43800620090225

Credit Suisse Group AG (CSGN.VX) will need to take another $2.5 billion of writedowns on its residual exposure to fully complete its exit of troubled assets, an ING analyst said.

However, analyst Alain Tchibozo expects the Swiss bank's earnings capacity to recover by 2010.

With trading continuing to account for two thirds of the investment banking revenues, Credit Suisse's revenues are not expected torecover fully until next year, the analyst said.

Or...CS could just throw them into Partner Asset Facility and call them bonuses.

Damn that was the most brilliant move ever (paying Dirs/MDs in CDO)

Oh hey, just messin' with ya about those job cuts from the House of Dimon earlier. Though Bearpont Morgan Mutual said this morning that cuts from the WaMu acquisition would clock in at about 12,000 total, that number was apparently revised to 14,000 this afternoon.

Maybe this is the apocalypse the Mayan calendar was referring to

Credit Suisse is exiting some of the riskier and more capital-intensive investment-banking activities, for example mortgage lending and highly structured derivatives, and beefing up in equities, foreign exchange and advisory businesses.

What does this mean for the future of S&T? Does this imply that banks won't focus as much on S&T and cut back significantly the number of people employed in trading?

Absolutely not. For the banks that survive, the model won't change much except that there will be slightly less complexity, a few products will disappear, and some prop areas might be smaller. Other than that, the increase in spreads will make up for less leverage. At least i hope. . .

To address your side note, Banco Santander continues to print money despite the continuing global economic gong show.