What Credit Suisse chief executive Tidjane Thiam said was: “We have taken immediate action to reduce outsized positions in activities which are not consistent with our new strategy and systematically reduced our exposures,”
Translation: Job cuts.
The bank will axe another 2,000 roles in addition to the 4,000 already announced. That means about 4,000 will go from the Canary Wharf operation in total by 2018. It has about 48,000 staff overall.
The bank is heading for a loss in the first quarter with trading down as it reduces its exposure to the high-risk, big-bet investment banking market. Mr Thiam suggested he had been blindsided by the scale of the bank’s involvement in products like distressed debt.
What Credit Suisse chief executive Tidjane Thiam said was: “The combination of a high and inflexible cost base, exposure to illiquid inventory in fixed income, historically low levels of client activity and challenging market conditions has led to disappointing financial results.”
Translation: Bonuses slashed.
The budget for bonuses has been cut by 36%, far in excess of straitened measures imposed by its rivals, especially in the US. The bank is targeting savings of £1.2billion and has write-downs of hundreds of millions over the last two quarters. Mr Thiam is also looking to raise millions by selling off assets, such as buildings.