Morning Coffee: Credit Suisse's weird use for ex-FX traders. Barclays' execution issue

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Credit Suisse FX traders

Credit Suisse is making another 2,000 people in its global markets business redundant. If you're trader who loses your job, what do you? Until recently, you could've always have reinvented yourself as an "intelligence" specialist at the Swiss bank.

The Financial Times reports that Credit Suisse has an "intelligence unit of former foreign exchange traders." What do the intelligent FX specialists do? Your guess is as good as ours - but it almost certainly has something to do with keeping an eye on traders' messages and personal trading activity.

The bad news is that this exciting opportunity has passed. Seemingly dissatisfied with the intelligence provided by its FX trading team, Credit Suisse has instead teamed up with Palantir, "a secretive Paolo Alto-based group" sponsored by the CIA. Working with Palantir, the bank plans to develop a new product that will track aberrant activities, such as trading using internal accounts or the use of "cancel and correct” trades. Matched with data on things like cell phone usage and door key-card swipes, this will help Credit Suisse detect staff engaged in anything untoward. In this way, the bank will monitor the behaviour of 1,000 traders and 4,000 relationship managers globally.  Ex-FX traders are truly redundant after all.

Separately, when Jes Staley announced his strategy for Barclays earlier this month, he said that he wanted the bank to "accelerate the elimination of the non-core unit" in 2016. It's a shame, therefore, that Marcus Schenck, CFO of Deutsche Bank, told German paper Boersen-Zeitung this week that winding down non-core units is proving tough at the moment. In a comment that doesn't bode well for Barclays, Schenck said unloading unwanted assets isn't easy as anticipated because there are few counter-parties. The wind-down of Deutsche's non-core unit is behind schedule as a result.


Credit Suisse is about to accelerate cuts to its trading business. (Bloomberg) 

Ex-head of US financial sponsors at Credit Suisse is joining Goldman Sachs. (Bloomberg) 

J.P. Morgan's got some new heads of emerging markets credit trading. (Bloomberg) 

New York-based Argon Capital Management, a hedge fund set up by former Barclays Capital fixed income structuring head Aurelia Lamorre-Cargill and ex-Graham Capital partner Marcos Bueno, has been hiring. (Financial News) 

It is not a good year to work in ECM in Hong Kong. (Financial Times) 

A graphic showing the jobs that pay well but don't make you happy and the jobs that pay little and maximize well-being. (Whatworkswellbeing) 

Corporate finance analyst at Bank of America quits to join boutique, quits boutique to make "freakcakes". (Evening Standard) 

Bad smell prompts evacuation at Bank of America office. (Delaware Online) 

"When I look back at my life, I want to know that I slayed.” (Fusion)

Photo credit: Credit Suisse 2012, luxorium by Luxorium luxury is licensed under CC BY 2.0.

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