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Credit Suisse is in the news for a couple of reasons on Wednesday.
CEO Tidjane Thiam said the bank will report a weak first quarter, in part because traders loaded up on illiquid positions without telling anyone.
“This wasn’t clear to me — it wasn’t clear to my CFO and to many people inside the bank,” he said, which isn’t the sort of thing a bank CEO wants to admit to.
First quarter markets revenues will be down 40% to 45%, and the bank is cutting 2,000 jobs. It is exiting three business lines in sales and trading, and cutting back in another 11.
In other news, London-based hedge fund manager Crispin Odey, who runs $11 billion in assets, said this is “no longer an investment market but a battlefield.”
Odey has been taking a hammering the past few months, and in an investment letter said that his fund has been rising or falling 5% per day of late.
Elsewhere, Valeant bought a drug that helps terminally ill people die and doubled the price. In related news, an analyst did the maths and reckons that Valeant would make a loss if it operated like “
a traditional specialty pharma company,” with industry-average research and development spending and without the price hikes.
In markets news, Apple is once again copying a page from the Samsung playbook, and Virgin America is reportedly thinking about selling itself.
We followed two Goldman Sachs technology analysts in London around for the day. This is what they got up to.
The intense competition that determines ‘Wall Street’s Best Athlete’ is now going to be on TV.
Here are the top Wall Street headlines at midday:
The ‘flash crash’ trader is getting extradited to the US – A British judge approved on Wednesday a US request for the extradition of a London-based trader accused of contributing to the 2010 Wall Street “flash crash” by placing bogus orders to spoof the market.
Ford CEO: We buy every competitor’s car, tear them down, and rebuild them to see how they work – Ford CEO Mark Fields visited Business Insider’s office on Tuesday ahead of the New York Auto Show, and he said some interesting things about how the automaker learns from its competitors.
The new co-CEO of hedge fund giant Bridgewater worked for Steve Jobs for 16 years — here’s why Ray Dalio hired him – Bridgewater Associates — the world’s largest hedge fund, with $169 billion in assets — has recently undergone a shakeup.
Go inside the family-owned business where big shots like Frank Sinatra and Rudy Giuliani have gotten their cigars for decades – In the midst of Midtown Manhattan’s modern hubbub, you might stumble upon a place that’s a step back to an entirely different time.