Bloomberg News reports that Thiam, 52, used his first memo to Credit Suisse employees on Wednesday to tell them the lender needs to be 'ruthlessly selective about what we do and, just as importantly, what we don’t do'. Cryan, the co-CEO of Deutsche Bank, said his securities and derivatives trading businesses can’t continue to soak up capital.
'We cannot afford that luxury', Cryan, 54, said in a letter to employees. 'Reducing this reliance should not place us at a competitive disadvantage as the market has anyway already moved in that direction'.
The two executives, neither of whom are former traders like their predecessors, are having to grapple with regulations that are making parts of their fixed-income operation less profitable while fines for misconduct have eroded capital.
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