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Morning coffee: job cuts in the banking sector will take place after Christmas. A junior banker with a salary of $120,000 really appreciates all the free granola bars

The job cut season is upon us. As bonuses slip into the crosshairs, banks have a well-worn playbook of cutting people off so bonuses are bigger for those left behind. It’s happening this year, but not to the extent you might expect.

With investment banking revenues at many banks down around 50%, one would expect this to be one of the most brutal years for job cuts in some time. It’s not. Credit Suisse gets in on it, cuts 2,700 jobs before Christmas, but other banks are taking it easy. There will be a few cuts before Christmas. Most, however, will happen afterwards.

“Senior bankers expect another round of layoffs next year before bonuses are paid to cut costs to better match the deal environment,” the headhunter said. Stéphane Rambosson told Financial News. For the moment, no one (except Credit Suisse), wants to cut well beyond 5%, added a banker.

The people on the ground seem to appreciate that. Speaking last week, a Barclays junior said the few cuts happening right now won’t be the last. The cuts will continue “again and again”, he said. Likewise, even if Credit Suisse manages to jettison 2,700 people before Christmas, it won’t be the end – 9,000 cuts are planned before 2025 and more are expected before the bonuses are announced in February. None of the sellers in the securitized product group are likely to go Apollofor example.

The result is that people live a long period of worry. Even if you survive this round of layoffs, you may not survive the next one. And if deals don’t return soon in 2023, the floodgates could really open. Banks delay because they are afraid of cutting too hard: “It’s not like in 2009, if things accelerate, the banks will regret the severe cuts”, declared a banker. Financial news.

Separately, Business Intern spoke to an unnamed first-year analyst at a boutique company who sometimes works until 4 a.m., but believes the $120,000 salary, likely a hefty bonus, and various perks more than make up for that. In addition to spending $3,000 on team meals at restaurants, the company is offering free lunches and snacks. The first can include 100 pizzas. The latter is for free granola bars and unlimited drinks. “I know that sounds a bit ridiculous. Are free granola bars really a big deal? Maybe not. But I think it contributes to the quality of life in this bank,” enthused the analyst.

Meanwhile:

Sam Bankman Fried has spent the past few days playing the Storybook Brawl video game, albeit less than usual. “It helps me relax a bit,” he said. “It clears my mind.” He also tweets one letter at a time on Twitter and invents as he goes: “I improvise. I think it’s time. (New York Times)

Valkyrie, which provides crypto ETFs, has laid off 30% of its staff. (Bloomberg)
“FTX appeared completely unprepared for bankruptcy and the state of internal records appears chaotic.” (FinancialTimes)

Fundraising from Alameda Research was easy. – ‘A A team of faceless Telegram correspondents associated with FTX-related entities appeared in a group chat. One, identified only by the initials “JHL,” approved a grant with nothing more than a deck of slides, with no questions asked about what the money would fund. (Bloomberg)

You pay zero dollars for equity from a broken crypto lending platform, you transfer customers to become FTX customers, you cash out anyone who wants to cash out, you assume that most people will trust FTX ( their savior) and not cash out, then you use their deposits to finance your wild speculations. If FTX/Alameda were already using customer deposits for the wrong reasons and losing them, then acquiring more customer deposits would be one way to get things done. (Bloomberg)

Alameda had amassed tokens before FTX said it would list articles on the exchange. “What we see is that they have almost always, in the month leading up to it, bought a position that they didn’t have before. It is clear that there is something in the market that tells them that they should buy things that they did not have before. ” (WSJ)

Credit Suisse is cutting senior investment bankers in Asia, including Johnson Chui, head of equity capital markets for Asia-Pacific, Karen Yap from the finance group and Ee-lin Tan, head of ratings advisory. (Bloomberg)

Jason Whiting, the former head of strategy for Barclays in the Americas, is joining fintech company Mercury Financial. (Bloomberg)

Chairman Mark Tucker is in charge at HSBC, not CEO Noel Quinn. “He must control everything…” “Tucker makes the big decisions. Quinn is a lovely guy, but he doesn’t set the strategy or make the big calls. (The temperature)

An Excel spreadsheet problem forced Iceland to price the sale of its stake in Islandsbanki too low. The numbers were considered text because of the commas and the sheet did not include some high bids because they were not saved as numeric information. (Bloomberg)

Elon Musk says he’s overworked:“I have too much work on my plate, that’s for sure.” He tweeted: “I’ve been at Twitter SF HQ all night. I will work and sleep here until the organization is fixed. (WSJ)

Mark Wahlberg used to wake up at 2:30 a.m., now he wakes up at 3:30 a.m. He doesn’t eat anything for 18 hours. “I don’t need to do as much cardio, I don’t need to spend as much time in the gym and I feel like I’m getting better results.” (WSJ)

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