Let’s talk about Credit Suisse today. The bank’s share price is down almost 60% this year, it has dealt with what feels like scandal after scandal in the last few years, and now the investment bank might be on the chopping block.
It’s a tense time for many insiders at Credit Suisse. Many are unsure if their jobs are safe, and they’re all sweating on the next earnings call, on October 27, for more clarity.
One person told me it’s a case of “rinse and repeat,” as Credit Suisse undergoes its second strategic review in less than a year.
Another person was “cynical” about leadership and questioned whether they knew what they were doing.
There’s a ton of speculation over Credit Suisse’s future, so I wrote a piece canvassing reactions from a few people at the firm. Check it out here.
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1. Credit Suisse’s investment bankers are stuck in limbo ahead of third-quarter earnings on October 27. They expressed frustration and resignation to me as they brace for a radical overhaul.
“We’re professional enough to keep working hard, but everybody is wondering what’s going on,” one managing director told me.
Among the plans reported to be under consideration are a three-way split of the investment bank, according to the Financial Times. Reviving the old Wall Street name of First Boston is another option, according to Bloomberg.
The bank, in response to the intense speculation, said in a press release on Monday that it was “on track” with its review and that it was considering potential divestitures and asset sales.
Under Chief Executive Ulrich Körner, Credit Suisse wants to transform its investment bank into a “capital-light, advisory-led banking business.”
That could potentially be curtains for thousands of jobs, Reuters reported.
“It’s the famous line: ‘Just business, not personal.’ I hate that, but such is life I guess. Some people are made for it,” another person told me.
“If I lose my job to ‘The Knife,’ at least it’s a good story,” this same banker said, in reference to Körner’s nickname ‘Uli the Knife’.
Here’s the full story.
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- TA Associates has appointed Jennifer Barbetta its chief operating officer. She will join the private-equity firm from Starwood Capital Group, where she was also COO. Before that, Barbetta was a partner at Goldman Sachs.
- Andrew Bednar has been appointed chief executive of advisory firm Perella Weinberg Partners. Peter Weinberg intends to step down as CEO, the firm said.