Interesting times ahead for bankers, as firms lick their wounds in the wake of the recent market turmoil, and scratch their heads working out how they can retain key staff in the midst of firings, restructurings and smaller bonus pools. But the signs are that firms will play hardball on bonuses this year-end.
Credit Suisse posted its third-quarter profits Thursday. Like Deutsche, there were no real surprises, although in addition to $1.9bn of write-downs related to the firm's leveraged loan portfolio and structured products, Credit Suisse also took a $258m loss in quant trading in the period.
The Wall Street Journal reports that as part of his departure package, ABN AMRO boss Rijkman Groenink, who steps down today (Thursday), will receive 22 months salary and an on-target bonus of $6.22m.
No surprises at Deutsche Bank, as the firm announced that tax credits and asset sales help it to a third-quarter profit rise of 31% to $2.34bn. As we know, however, the investment bank posted its first quarterly loss ($258m) for five years.
There's been a lot of nonsense written recently about the fact that the media was mainly responsible for former Merrill CEO Stan O'Neal losing his job. What rot.
Forbes has just released its fourth annual list of the biggest earners among dead celebrities. Here's the Top 10, with a note of how much they 'made from the grave' in the last 12 months:
Merrill CEO Stan O'Neal is toast, and is expected to stand down any moment now. Citi boss Chuck Prince is stubbornly hanging on, and Bear Stearns CEO Jim Cayne appears to have survived. ABN AMRO boss Rijkman Groenink walks off into the sunset later this week, and former UBS CEO Peter Wuffli was forced to walk the plank a few weeks back. So, there's a lot been going on in the CEO space at the moment.
Here's a note of the statement today issued by Merrill Lynch, announcing that CEO Stan O'Neal is stepping down.
More bad news on the job front this week, as Bear Stearns has come out and confirmed it is to axe another 300 in the wake of the recent market turmoil.
Reuters reports that UBS has posted a $622m loss in the third-quarter, after $3.6bn in write-downs sustained on US subprime-related assets in the period. The bank said that, although all business units currently remain profitable in the fourth-quarter, the fixed income, currencies and commodities business 'remains exposed to further deterioration in the US housing and mortgage markets'. A Q4 loss over at the investment bank cannot therefore be ruled out.