Credit Suisse’s bankers’ exodus endures
Senior bankers continue to leave Credit Suisse, after the bank cut the amount of money set aside for employee bonuses.
Credit Suisse continues to experience the loss of a “slew” of senior bankers, says Nabila Ahmed on Bloomberg. The defections come as Credit Suisse has “slashed” the amount of money set aside for employee bonuses, using the savings to limit the “financial hit” from the recent implosion of the Archegos fund.
Other “debacles”, including its links to the collapsed supply-chain finance group Greensill Capital, have also hurt its reputation. Managers are
now considering offering “retention bonuses” for staff to “stem the bleeding”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Credit Suisse’s bankers are particularly “frustrated” that the failure of the bank’s prime-brokerage unit, which caters to investors such as Archegos, overshadowed an “otherwise strong” run for the investment bank, says Cara Lombardo in The Wall Street Journal. The bank has advised on several “high-profile transactions” lately, including chipmaker Advanced Micro Devices’ $35bn purchase of rival Xilinx and the $21bn acquisition of Speedway by the Japanese owner of the 7-Eleven convenience-store chain.
Still, there may be some light at the end of the tunnel, says Reuters. Credit Suisse is making “progress” in regaining assets from its suspended Greensill-linked supply chain finance funds. It has recovered $5.9bn out of a possible total of $10bn. This comes after Greensill, which lent money to firms by buying invoices at a discount, collapsed when one
of its main insurers declined
to renew its cover. That forced Credit Suisse to shut $10bn of supply-chain finance funds
that invested in bonds issued by Greensill.
Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Private school fees soar and VAT threat looms – what does it mean for you?
Rising private school fees could see more than one in five parents pull their children out of their current school. Before you remortgage, move house or look to grandparents for help, here’s what you need to know.
By Katie Williams Published
-
Best and worst UK banks for online banking revealed
When it comes to keeping your money safe, not all banks are equal. We reveal the best and worst banks for online banking when it comes to protecting your money from scams
By Oojal Dhanjal Published
-
AstraZeneca CEO’s £1.8mn pay rise approved despite shareholder opposition
AstraZeneca hiked its dividend to persuade shareholders to accept CEO Pascal Soriot’s pay rise. Is he worth his salary?
By Dr Matthew Partridge Published
-
Adidas, Nike or Jordans - could collectable trainers make you rich?
The right pair of trainers can fetch six figures. Here's how you can start collecting vintage Adidas, Nike or Jordans now
By Chris Carter Published
-
The industry at the heart of global technology
The semiconductor industry powers key trends such as artificial intelligence, says Rupert Hargreaves
By Rupert Hargreaves Published
-
Three emerging Asian markets to invest in
Professional investor Chetan Sehgal of Templeton Emerging Markets Investment Trust tells us where he’d put his money
By Chetan Sehgal Published
-
What to consider before investing in small-cap indexes
Small-cap index trackers show why your choice of benchmark can make a large difference to long-term returns
By Cris Sholto Heaton Published
-
Why space investments are the way to go for investors
Space investments will change our world beyond recognition, UK investors should take note
By Merryn Somerset Webb Published
-
Time to tap into Africa’s mobile money boom
Favourable demographics have put Africa on the path to growth when it comes to mobile money and digital banking
By Rupert Hargreaves Published
-
M&S is back in fashion: but how long can this success last?
M&S has exceeded expectations in the past few years, but can it keep up the momentum?
By Rupert Hargreaves Published