C Suisse, Deutsche Bank need to factor in keeping staff morale high

Happy

The market slowdown has led some investors to question whether restructuring plans go far enough, while others warn that cutting expenses too deeply will plunge the firms further into crisis by squelching the motivation of key earners.

Investors, regulators and employees hailed John Cryan and Tidjane Thiam as leaders who could turn around Europe’s two biggest investment banks. Less than a year into their jobs, the joy is gone.

Bloomberg News reports that the CEOs of Deutsche Bank and Credit Suisse are squeezed between investors pushing them to boost profitability and employees demoralized by job cuts, lower pay and their bosses’ blunt criticism. Shares for both banks are down more than 30% this year, touching their lowest prices in decades.

The two men took over with mandates to tackle costly debt-trading businesses, outdated technology and weak controls that helped cause the mounting legal bills eating into their capital. Since then, a market slowdown has led some investors to question whether the plans go far enough, while others warn that cutting expenses too deeply will plunge the firms further into crisis by squelching the motivation of key earners.

To access the complete Bloomberg News article hit the link below:

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