Credit Suisse closing down IBD? More senior departures...
Just joined CS graduate programme as Analyst 1 this week. Having spoken to a few people within the firm, there is a rumour that Investment Banking will be dramatically shrunk and eventually closed down in certain geographies to focus on Wealth Management - can anyone confirm?
Dark future outlook coupled with another batch of senior departures and consequent decrease in deal flow got me thinking - was it a mistake to go to CS over another lower tier bb I had an offer from? Should I look to lateral elsewhere?
Will Archegos have a negative impact on CS' business? Yes. Will it threaten their status as a bulge bracket or cause them to dramatically shrink their advisory practice? No, at least not in the near term. Assuming your other options were DB/UBS I think CS is still a much stronger firm - even post Archegos. I think there will be longer term implications that would merit consideration if you were thinking about staying at CS for 5-10+ years but I don't think recent events will impact your experience as an analyst at CS. I work at CS and haven’t heard any such rumors.
I don’t have any nonpublic information. This is just my take based on what I’ve heard from others in my group at CS
who are the recent senior departures?
Also wondering this. There hasn’t been “another batch” of senior departures
Their top Sponsors rainmakers (e.g. Malcolm Price) are all still there, which accounts for the majority of their IB revenue. They’re also killing it this year overall in the IBD, and the CEO has communicated that there is no intention to sell the IB.
No, that’s not happening in major markets.
salaries just got bumped to 100k
Tech M&A is on pace for best year this decade.
(Neither of the big tech M&A MDs left - David Wah and Steven Geller)
Lev fin still in great shape (Cohen and David Miller)
sponsors, key franchise, doing great (Malcolm price still around)
ECM franchise is extremely strong and has been bringing in great revenue even excluding SPACs
Given the uncertainty, I would personally not go there and take any other BB over CS
No shotttt I’d take UBS or DB tho
I would probably take Barclays over CS tho depending on group, or any other mid or top tiers unless I was focused on a certain product/industry that CS is really good at
Think of it this way, if there's an airline that's rumoured to go bust / close down (which might not be true at all), you would still never buy a ticket with them. Might be difficult to win business
This is very naive and there are multiple threads on it.
There haven't been any departures for a few weeks, it appears exodus has been stemmed. After that, very key figures remain (as discussed above - Price, Wah, Geller, Cohen, Niron Stabinsky, David Hermer).
Why would these rainmakers who were receiving poaching offers from every bank across the street (including better ones) stay? Because the franchise will remain very strong in its key areas
This is actually a really good point. These guys must have turned down top $ to stay
I work at CS and doesn't seem like you work here. doubt anyone who would have material news would tell a random analyst about it. and if you actually worked here and paid attention, you would've seen that they've hired a few senior bankers from other banks to fill out the roles of departures. IB generates rev for the bank and it's highly unlikely they would scale down materially
Right??? Also CS analyst and morale in my group is very high. On pace for record year in M&A and equity.
Every bank is on pace for record year this year lol this says literally nothing
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CS analyst checking in. Reiterate everything said in this thread that the “demise of the IBD” is so wildly naive and overblown that it’s hard to put into words how dumb it is. The Investment Bank is having a record year, my group is blowing the doors off of our prior revenue records, we had a handful of crappy MDs and Ds leave that were generally the worst to work with and everyone is happy they’re gone. Bonuses were fat as hell and another pay raise is on the way, and deal flow has continued to be strong and the culture in the office has been very chill - most leave at dinner time and log on from home after hitting the gym - weekends have been very respected following the GS13 bonanaza. My friends at other BBs want to kill themselves with how bad they’re being grinded, couldn’t pay me to go work at a place like BAML right now especially when exit opps are very much the exact same. If you take a job at DB or UBS over CS you’ll get the 2 year prison sentence of nonstop pitching you deserve lol
SA here. This is largely in-line with how things were this summer, and certainly helps peace of mind for going into next year full-time
All. Facts.
the majority of the Ds and MDs that have left have been shitty and quickly jumped ship to take advantage of an opportune moment to lateral with incoming poaching interest.
the list of almost all key CS figures that remains is extremely encouraging and goes to show that the best turned down more money to stay: price, wah, stabinsky, hermer, geller, gudofsky, cohen, etc
my group is extremely busy executing and in great spirits after a 20k lifestyle bonus and an impending bump to 100 base
(I disagree with your point about lifestyle, my group is kinda getting worked but that’s always a good thing in a way. But in a busy way, not unhealthy way - senior bankers still respect Friday nights, Saturday, etc and are not tone deaf)
Strongly second this!
How's CS FIG looking with all the departures?
Got the worst of it unfortunately
Is the morale down / junior turnover really high?
I don't work there, but CS is still strong. Yeah, they had some bad headlines. Yes, some important bankers left and many unimportant bankers left. They are a big bank, this happens occasionally and there is no reason to think they will not continue to prioritize investment banking. There is zero evidence they are going to sell IB. They will likely de-risk their prime brokerage unit and de-prioritize their S&T business.
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