Credit Suisse Cuts 170 Investment Bank Jobs
Credit Suisse Group will cut 170 jobs in its investment banking division, or nearly 1% of the unit's employees.
"We have made targeted reductions to adjust our capacity to meet diminished client demand," said Credit Suisse spokeswoman Victoria Harmon. She cited "the current market environment" as the reason for the cutbacks.
About half the cuts will come from the bank's fixed-income business, including some commercial mortgage-backed securities jobs, and the other cuts in the investment banking division represent annual performance-related reductions, a source familiar with the situation said.
The move follows a cutback of 150 jobs in Credit Suisse's residential mortgage-backed securities business last week.
U.S. banks and financial service companies have been cutting tens of thousands of jobs as tightening credit conditions, particularly in mortgages, have made lending more difficult.
Earlier Tuesday, Morgan Stanley said it would restructure its residential mortgage business and cut about 600 employees.
The investment bank said it will cut approximately 500 employees in the United States and another 100 in Europe -- mostly in the U.K. -- and consolidate its mortgage businesses under a single platform.
The move comes amid a steep drop in mortgage lending, hammered in recent months by rising defaults in the subprime sector that caused widespread distress among lenders, home builders and other markets.
Lehman said it would slash 850 employees in the U.S. and U.K. on top of the 1,200 it cut when it shut down subprime lender BNC Mortgage. HSBC said it is closing its U.S. mortgage unit, cutting 750 jobs, while Credit Suisse said it plans to cut 150 jobs.
All told, about 88,000 jobs have been lost in the U.S. financial industry this year, about 75% more than in 2006, according to consulting firm Challenger, Gray & Christmas.