DealBook: Credit Suisse Cuts 5,300 Jobs

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Edited by Andrew Ross Sorkin

TODAY'S TOP HEADLINES | Thursday, December 4, 2008 M & A: Capital One to Buy Chevy Chase Bank BANKING: Top Citi Execs Ready to Forego Bonuses, Report Says PRIVATE EQUITY: Carlyle Cutting Staff by 10%, or 100 Jobs HEDGE FUNDS: Fortress, the Hedge Fund, Is Crumbling OFFERINGS: Fed Report Shows Downturn After October VENTURE CAPITAL: iPerceptions Nabs $3.65 Million LEGAL: G.M. Is Trying to Ease a Crushing Debt Load TOP STORY Credit Suisse Cuts 5,300 Jobs Credit Suisse announced Thursday it would cut 5,300 jobs -- 11 percent of its global workforce -- and Nomura of Japan said that it planned 1,000 job cuts at its London office as the financial crisis and economic downturn intensifies. The cuts add to the tens of thousands of job losses in the global financial sector in recent months as the crisis that began with U.S. subprime mortgage meltdown last year worsened. Credit Suisse said in a statement in Zurich that it had losses of about 3 billion Swiss francs, or $2.5 billion, in October and November, and the job losses, most of which will be made in the first half of 2009, are designed to reduce costs by 2 billion francs. Most of the cuts will come at the struggling investment banking unit. Go to Article from The New York Times» Go to Press Release from Credit Suisse» Read More Add a comment ADVERTISEMENT Back to Top MERGERS & ACQUISITIONS Capital One Financial said it will buy Chevy Chase Bank for about $520 million in cash and stock, in the latest sign of consolidation among midsize American banks. Go to Article from The New York Times» Go to Capital One News Release via PRNewswire» Read More Add a comment General Motors's decision to explore alternatives for Saturn -- which come down to selling it or scaling back its role -- underscores how a promising brand quickly lost its shine. Go to Article from The New York Times» Read More Add a comment A group of managers and senior employees of Lehman Brothers' Neuberger Berman unit was selected as the winning bidder for the bankrupt investment bank's money management business on Wednesday, after an auction was held in federal bankruptcy court in Lower Manhattan. Go to Article from The New York Times» Go to Item from DealBook» Read More Add a comment Constellation Energy said Wednesday that its board would review the $4.5 billion proposal by Electricite de France for half of Constellation's nuclear power unit. Go to Article from The New York Times» Go to Press Release from Constellation» Read More Add a comment The billionaire financier Carl C. Icahn told CNBC on Wednesday that he would be opposed to a partial bid for Yahoo by the former chief executive of Yahoo, Jonathan Miller. "I don't think any of the shareholders would be interested in selling a partial 51 to 52 percent of the stock even at a premium," he said. Go to Video of Carl C. Icahn Interview from CNBC» Go to Item from DealBook» Read More Add a comment Asian companies have been snapping up choice overseas assets, mainly in Europe, with mergers and acquisitions hitting a record $58 billion so far this year, despite the financial crisis. Go to Article from The Associated Press via The New York Times» Read More Add a comment Goldman Sachs said on Thursday it has rejected an offer from Panasonic to buy its shares in Sanyo Electric because it believes the offer price is too low. Go to Article from Reuters via The New York Times» Read More Add a comment For now, a marriage between Twitter and Facebook is not meant to be -- but the courtship between the two Web 2.0 companies could be rekindled in the future, Twitter's chief executive said at a talk Tuesday night. Go to Item from Bits» Read More Add a comment Danish domestic airline Cimber Air said Thursday it has taken over key parts of bankrupt budget airline Sterling Airways for an undisclosed amount. Go to Article from The Associated Press via The New York Times» Go to Press Release from Cimber Air» Read More Add a comment Back to Top INVESTMENT BANKING Citigroup's top executives and Robert E. Rubin, a director and senior counselor at the firm, are ready to forgo their bonuses this year as the bank reels from the effects of the financial crisis, The Financial Times reported. Go to Article from The Financial Times (Subscription Required)» Go to Article from Reuters via The New York Times» Read More Add a comment During his interlude in the financial sector, Rahm Emanuel, who was chosen last month to become President-elect Barack Obama's White House chief of staff, went on to make more than $18 million in just two-and-a-half years. Go to Article from The New York Times» Read More Add a comment Financial institutions from Morgan Stanley to GE Capital are trying to beef up their deposit gathering, but they may find their dash for retail dollars isn't a panacea, Breakingviews says. Go to Article from Breakingviews via The New York Times» Read More Add a comment Analysts continue to cut estimates for Goldman Sachs and Morgan Stanley ahead of their fourth-quarter earnings reports. Go to Item from DealBook» Read More Add a comment An academic study found corporate boards are more likely to be influenced by the recommendations of equity analysts in deciding whether to dismiss chief executives following the 2002 rule change that separated the analysts from investment bankers. Go to Item from DealBook» Read More Add a comment New deal toys -- otherwise known as Lucites -- are rare these days. Investment Dealers' Digest looks at the history of these trinkets, while DealBook found a Lehman deal toy on eBay. Go to Article from Investment Dealers' Digest» Go to Item from DealBook» Read More Add a comment Back to Top PRIVATE EQUITY The Carlyle Group, the big private equity firm, said Wednesday that it was cutting about 100 jobs, or 10 percent of its work force, citing "extraordinary market conditions." Go to Item from DealBook» Read More Add a comment In a sign of the economic times, Harvard has sent a letter to its deans saying that the university's $36.9 billion endowment fund lost 22 percent of its value in the last four months, or about $8 billion, and could decline as much as 30 percent by the end of the fiscal year on June 30. Go to Article from The New York Times» Read More Add a comment TPG's troubles with Washington Mutual and other ill-fated deals have forced the private equity industry to rethink its role in the restructuring of the banking and financial services sector. Go to Article from The Deal» Read More Add a comment Relations between Carl C. Icahn and Leon Black, the founder of Apollo Management, may be strained by legal wrangling these days, but The Deal has found a YouTube video that shows how chummy the two deal-makers have been in the past. Go to Video via TheDeal.com» Go to Previous Item from DealBook» Read More Add a comment Back to Top HEDGE FUNDS Cracks are spreading throughout the Fortress Investment Group, once a leading player in the worlds of hedge funds and leveraged buyouts. The latest bad news: the firm was forced to temporarily halt redemptions at one of its biggest funds. Go to Article from The New York Times» Go to Item from DealBook» Go to Fortress Filing via the Securities and Exchange Commission» Read More Add a comment Legg Mason's Bill Miller, a celebrated value investor but whose stock picking is far off the mark this year, said on Wednesday the "bottom has been made" in U.S. equities, and forecast opportunities for strong gains once markets rally. Go to Article from Reuters via The New York Times» Read More Add a comment Investors in the Reserve Primary Fund, the giant money market fund that has been frozen for more than two months, are finally getting some details about how the beleaguered fund plans to handle its continuing liquidation. Go to Article from The New York Times» Go to Press Release from The Reserve Fund» Read More Add a comment To most, the markets' meltdown is painful. To a woman whom The New Yorker dubs the John Paulson of poetry, however, it is a subject worthy of verse. Go to Article from The New Yorker» Go to Item from DealBook» Read More Add a comment Back to Top I.P.O. / OFFERING The economic decline took a turn for the worse after the market shocks of October. In November, the problems only deepened. Go to Article from The New York Times» Read More Add a comment New York City Mayor Michael Bloomberg said he had advised President-elect Barack Obama's transition team to boost U.S. economic growth by fixing the credit markets so that cities and states can resume borrowing to build infrastructure projects. Go to Article from Reuters via The New York Times» Read More Add a comment Back to Top VENTURE CAPITAL iPerceptions, a Web site analytics start-up, has landed $3.65 million in a round of new financing. Go to Article from PaidContent.org» Go to News Release from iPerceptions» Read More Add a comment The nonprofit entity behind Wikipedia received a $890,000 grant from the Stanton Foundation to help inexperienced authors contribute articles and edit posts. Go to Article from Read Write Web via The New York Times» Read More Add a comment Back to Top LEGAL As the Big Three Detroit automakers campaign for a federal bailout, General Motors is pleading with its anxious bankers and bondholders to lighten its debt burden. Go to Article from The New York Times» Go to Related Item from DealBook» Meanwhile, the United Automobile Workers union said Wednesday that it would make major concessions in its contracts with the three auto companies to help them lobby Congress for $34 billion in federal aid. Go to Article from The New York Times» G.M. and Chrysler are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a government bailout, Bloomberg News reported, citing a person familiar with internal discussions. Go to Article from Bloomberg News» Go to Article from Reuters via The New York Times» Read More Add a comment Federal regulators on Wednesday adopted new rules designed to stem conflicts of interest and provide more transparency for Wall Street's credit-rating industry, widely faulted for its role in the subprime mortgage debacle and ensuing credit crisis. Go to Article from The Associated Press via The New York Times» Go to Press Release from the S.E.C.» Read More Add a comment Carl Icahn's lawsuit against Realogy has some long and hyper-technical arguments, The Deal Professor says, but he may also have a point. Go to Item from The Deal Professor» Read More Add a comment Eliot Spitzer, who policed Wall Street as New York's attorney general and was later forced to resign as the state's governor, has a new calling as a financial commentator for Slate. His first column criticizes the government's approach to the bailout. Go to Column from Slate» Go to Item from City Room» Read More Add a comment Bally Total Fitness, the gym operator controlled by the hedge fund Harbinger Capital Partners, filed for bankruptcy protection on Wednesday for the second time in less than two years, hindered by debt and limited refinancing options amid the credit crunch. Go to Article from The Associated Press via The New York Times» Read More Add a comment For those seeking a piece of the federal bailout, Vanity Fair offers the (mock) application already made available to banks and automakers. Go to Item from Vanity Fair's Politics and Power Blog» Read More Add a comment Get home delivery of The New York Times for as low as $3.15 a week.

SEARCH DEALBOOK SITE DealBook | E-mail Preferences Help | Advertising Opportunities Credit Suisse finally wakes up to the new world December 4, 2008 EU shouldn't abandon principles on bank recaps December 4, 2008 Global stimulus should focus on jobs December 4, 2008 What's a Wall Street Chief Worth? With taxpayers' money on the line, creating packages that pay enough -- but not too much -- becomes an even thornier problem. More» Bracing for Bonus News London's financial workers expect their bonuses to drop as much as 70 percent from last year, according to a survey. More» Video: Fixing the Big Three Andrew Ross Sorkin talked about taking a tough-love approach to bailing out G.M., Ford and Chrysler in an appearance on "Charlie Rose". More» Tracking the Bailout The New York Times tracks how the $700 billion Troubled Asset Relief Program is being doled out to banks, insurance companies and more. More» What G.M. Really Needs Instead of getting a bridge loan that will just disappear, General Motors should be revamped in a government-sponsored bankruptcy filing. More» Video: Griffin on Capitol Hill Kenneth Griffin of Citadel testifies before a House committee on the role of hedge funds in the financial markets. More» Revolving Door The latest hires, promotions and departures at Kirkland & Ellis, Fannie Mae, BlackRock and more. More» The Rescue Squad DealBook's special section looks at the people reshaping Wall Street and what the new landscape might look like. More» The Deal Professor A blog-within-a-blog that looks at mergers, private equity and corporate governance through a legal lens, written by Steven M. Davidoff, a professor at the University of Connecticut School of Law and a former lawyer at Shearman & Sterling. More» Lehman's Fall Full coverage of Lehman Brothers' dramatic slide into bankruptcy protection. More» The Bear Bailout Full coverage of the proposed takeover of the troubled investment bank -- and the crisis that led to the sale. More» DealBook for BlackBerry Get one-click access to DealBook to read the latest deal news throughout the day. Visit mobile.nytimes.com/bbinstall directly from your BlackBerry or by sending the text message "db install" to 698698. More information on DealBook for BlackBerry. News By Industry Airlines / Autos Basic Industries Consumer Goods Energy / Utilities Financial Services Food & Beverage Healthcare Media Real Estate Retail / Leisure Technology Telecom Tools & Resources GET QUOTES Look Up Symbol RESEARCH SUITE Portfolio Company Research U.S. Markets International Markets Mutual Funds SEND A TIP OR FEEDBACK E-mail us at dealbook@nytimes.com Dealboard

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