Swiss bank tells staff to tighten their belts
The investment bank Credit Suisse First Boston (CSFB) has reportedly ordered its bankers not to spend more than $10,000 per business dinner. The austerity measure follows a sharp decline in many investment banks' key businesses.
Bosses at CSFB were reported to have sent a memo to colleagues saying: “Given current market conditions, try to keep dinners below $10,000, particularly when no travel is involved.”
CSFB refused to comment on the report in Britain’s Financial Times newspaper, which says that the bank has also ordered employees to put a stop to the usual weekend-long celebrations to celebrate the sealing of important deals.
The new mood of austerity reflects the slowdown in the investment banking business, after the recent boom years of mergers and acquisitions.
CSFB is also tightening the purse strings when it comes to “lucites”, which are given away to mark successful deals. These Perspex pyramids and tombstones are the equivalent of trophies and bankers take great pride in displaying them prominently in their offices.
Employees have been ordered to keep the cost of these $2,500 and not to order them for senior bankers.
Investment banks have also begun retrenching staff, as the slowing economic climate starts to affect business. CSFB has announced that it is to lay off 350 support staff around the world.
Other banks have also introduced austerity measures. Goldmann has banned first class travel and refused to pay for taxis to take staff home, while Schroder Saloman Smith Barney has increased membership fees for the staff gym and raised the prices in the office canteen.
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