Trading floors are like morgues at present

UBS Trade Floor

'For new CEOs looking to cut and kitchen-sink costs, it’s an easy call to reduce headcount'.

Bloomberg News reports that for the new leaders of Deutsche Bank and Credit Suisse, a debt-trading slump in the third quarter could provide fresh incentive to shrink their bond businesses as they reshape the firms to boost profitability.

'Trading floors are like morgues at present', Bill Blain, a strategist in London with brokerage Mint Partners, said in an e-mail. 'For new CEOs looking to cut and kitchen-sink costs, it’s an easy call to reduce headcount'.

John Cryan, Deutsche Bank’s co-CEO, and Credit Suisse CEO Tidjane Thiam both took over at mid-year with mandates to rebuild investor trust after their firms’ shares trailed investment-banking peers.

Both will present plans this month for overhauls to adapt to stricter capital rules and interest rates stuck at record lows.

Hit the link below to access the complete Bloomberg article:

Debt Slump Leaves Traders Exposed as European Bank CEOs Eye Cuts

Bond Traders Face Incredible Shrinking Bonus as Revenue Tumbles

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