Recruitment Costs Hit BofA Unit, Credit Suisse Cuts

Mixed news over at Bank of America. The bank as a whole posted record profits in the third quarter, coming in at $5.42bn. Not so good news, however, at the corporate and investment banking unit.

Although profit at the unit rose 24% to $1.92bn, as Bloomberg points out, much of the revenue increase came from the one-off sale of the division's Brazilian unit for $720m. Excluding one-off gains, the unit's profits fell some 4%. Bank CEO Ken Lewis said that costs over at the corporate and investment bank increased due to additional hiring in the underwriting and M&A businesses.

Finally, Bloomberg also reports that Credit Suisse has cut around a third of its staff from the floor of The New York Stock Exchange, taking its presence there to around 20. According to the news agency, the company has fired 7 traders, and moved two more employees into other roles, as automated trading makes flesh and blood surplus to requirements.

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