Morning Coffee: Sudden death for Credit Suisse FICC professionals? Four fired traders given their jobs back

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Soon, Credit Suisse’s London-based rates traders and salespeople will feel the wrath of the bank’s latest restructuring exercise. The bank has promised to selectively withdraw from rates trading. Tomorrow, FT Alphaville says Credit Suisse will be making 50 job cuts in rates trading and sales.

Unfortunately for Credit Suisse’s fixed income professionals, this may not prove the last of it. Over the weekend, Swiss Finance Minister Eveline Widmer-Schlumpf, declared unexpectedly that Swiss banks should be subject to leverage ratios of 6-10%, instead of the 3% due under Basel III. Yesterday, shares in both UBS and Credit Suisse fell as a result of her comment. “Any such potential move could lead to further shrinkage of the fixed income, currencies and commodities (FICC) division for the Swiss IBs, especially at CSG,” said analysts at JPMorgan Cazenove ominously.

Separately, the many traders being dismissed under the investigation into FX price manipulation were given reason for hope yesterday when four Deutsche Bank traders dismissed during the earlier LIBOR investigation were reinstated.

The four traders were reportedly fired in February as part of Deutsche’s LIBOR investigation. They sued the bank at the Frankfurt Labour Court and returned to work yesterday. Deutsche Bank had argued that the four men exchanged improper instant messages with derivatives traders about which data submit in order to maximize their profitability. However, the court said that the bank didn’t have proper processes in place to prevent this kind of conflict of interest.


HSBC says it will protect banker bonuses and salaries from the EU. (IB Times) 

Of the top 100 accountancy firms in Britain, 25% have upped their graduate intake on the same time last year and 10% have doubled it. (Telegraph) 

Very few Yale students go into finance. (YaleDailyNews) 

Marxist bankers feel capitalism’s yoke. (Bloomberg) 

BlueBay Asset Management hired Alex Khein from State Street as its new COO. (FinancialNews) 

Sberbank discrimination case: one of her colleagues told her she was hired “because of her tits”. (The Times)