DealBreaker.com

Update 11:45 PM: DealBook is reporting that the investment bank is laying off about 150 workers from its mortgage-backed securities unit. Sourced to "a person with knowledge of the matter."

Earlier reports: Credit Suisse is rumored to have laid off a massive amount of New York employees today. The whisper number for the layoffs was 400 people in New York. Two people familiar with the situation say that within the bank that's the number people are talking about. DealBreaker has been given strong reason to believe that the actual number number is far lower. We're also told that no investment bankers have been laid off.

The layoffs are said to be a continuation of similar layoffs in mortgage related units at other investment banks, according to a knowledgeable source. The gossip had been that the structured products group took the hit. But we spoke to someone at the structured products desk at Credit Suisse who says that his group is still hiring.

This summer’s credit crunch and subsequent drying up of the leveraged buyout market, have sparked persistent rumors and predictions of job losses on Wall Street. It's clear that there are lots of jitters all across Wall Street.

Credit Suisse could not immediately be reached for comment. We'll update this space as we get more information.

Update 6:30: We're sending a reporter over there to see what's up. Will scout nearby bars for CSers drowning their sorrows.

Update 7:00 We're out of here. Check comments below for additional rumor-mongering. We'll check back in later tonight when we've had a chance to check our email again.

Comments

More like things that fall under the "structured finance" umbrella: ie, abs, mbs, etc. #1, that number is too high, at least for what happened today. #2, a good portion of it was in resi originations

Posted by: Anonymous | September 25, 2007 06:02 PM

bull

Posted by: Anonymous | September 25, 2007 06:19 PM

Merrill Lynch laid off a number of people 2-3 weeks ago across the organization but I don't know know how many.

Posted by: Anonymous | September 25, 2007 06:22 PM

I heard that it was the lev fin group--they haven't been busy in a long long time...

Posted by: Swiss Miss | September 25, 2007 06:37 PM

swiss miss they just did First Data.

Posted by: Anonymous | September 25, 2007 06:44 PM

actually i take that back. their financial sponsors group did FDC. what does lev fin in CS do? I've never seen their teams listed on any org book

Posted by: Anonymous | September 25, 2007 06:48 PM

i've got the full scoop, will update later

Posted by: Anonymous | September 25, 2007 06:53 PM

They do a good amount of high yield and syndicated loan work. I worked with them on a number of deals back when I did that sort of thing.

Posted by: John Carney | September 25, 2007 06:57 PM

Yes, understand from their league table standings but it is interesting that, i've never encountered them on any transaction. Their industry coverage groups in IBD must have lev fin capability as one hears only from those groups and their syndicate desks.

oh well. Hope they didn't get laid off.

Posted by: Anonymous | September 25, 2007 07:11 PM

it was mortgaged back/asset backed people.

Posted by: Anonymous | September 25, 2007 07:16 PM

Posted by: Anonymous | September 25, 2007 07:17 PM

true

its always fun meeting new coverage.

Posted by: Anonymous | September 25, 2007 07:19 PM

From Dealbook:

"The investment bank is laying off 150 workers from its mortgage-backed securities unit, a person with knowledge of the matter told DealBook on Tuesday."

Posted by: Anonymous | September 25, 2007 07:37 PM

about 250 in total. of that, probably at least 100 from their residential mortgage originations unit. of the rest, a number of mortgage traders, sales people, CMBS originators, ABS investment bankers (and at least two senior/md level people there), etc.

Posted by: Anonymous | September 25, 2007 07:50 PM

structured finance people this week, IB people next week is the rumor.

Posted by: Anonymous | September 25, 2007 07:57 PM

Why would they do it in two rounds, in quick sucession? PR nightmare.

Posted by: Anonymous | September 25, 2007 08:00 PM

this is good info.
Market is going to come back... this is bs.

Posted by: anonymous | September 25, 2007 08:01 PM

this is good info.
Market is going to come back... all these layoffs is bs.

Would love to know which source on CS's structured products desk said their group is still hiring.

It's late September, most firms don't hire after August in good years, and the structured products universe just took a collective six-month dump. Suuuuuuuure, you're still hiring.

Posted by: Anonymous | September 25, 2007 08:44 PM

^most firms don't start recruiting at the undergraduate level until september... in any year. It's entirely possible that they're hiring, though i doubt they're looking for a lot of people to join the structured products group.

Posted by: em | September 25, 2007 09:37 PM

This whole Credit Suisse story is cheesy and has a lot of holes in it.

Posted by: Le Coupier du Frommage | September 26, 2007 09:31 AM

Who cares. Get back to work. Whether they are hiring on not is not really a concern to any of us unless you are looking for a job and if that is the case, you shouldn't be wasting you time on this message board.

Fact-they are laying off people and it sucks for those people and their families.

Fact-if you are not the one being laid off respect the intergrity and privacy of those who were laid off and be classy enough not to gossip about it.

Posted by: The enforcer | September 26, 2007 10:03 AM

Any layoffs in London?

Posted by: Maarten | September 26, 2007 10:24 AM

anybody know how severence pkg looks like these days for ibanks that are laying off people?

What groups were affected by this and which iBANK is nxt?

Posted by: anonymous | September 26, 2007 10:57 AM

no clue.
no clue.
my bet is on BAC. big mtg. group relative to league tables.

Posted by: anon | September 26, 2007 11:09 AM

Severance package is 3 months salary/benefits for first wave leaving.

Posted by: Anonymous | September 26, 2007 11:35 AM