Bonus round

2 November 2011 By Peter Thal Larsen, Margaret Doyle Follow @Peter_TL

Earnings fell sharply in the third quarter. Several banks are already axing jobs. Others will sit tight, worrying about missing a rebound. But the industry has too much capacity for an era of higher capital requirements and lower revenue. Reality is bound to sink in this winter.

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Credit Suisse on Nov. 1 said it planned to shrink the risk-weighted assets allocated to the Swiss bank’s fixed income, currencies and commodities division by around half by 2014. Credit Suisse also increased expected cost savings from 1 billion to 2 billion Swiss francs, and increased planned job cuts from 2,000 to 3,500.
Nomura on Nov. 1 said it would cut costs by $1.2 billion, or 94 billion yen. Around 60 percent of the cuts will fall in Europe, according to a person familiar with the situation. Around 70 percent of the costs would come from headcount reductions.

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