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Report: Credit Suisse cuts senior i-bank roles

Credit Suisse Group AG has cut about 26 senior investment banking roles since February amid a reorganization of its European advisory business, Bloomberg News reported, citing three people with knowledge of the matter.

The cuts, which impacted directors and managing directors responsible for M&A and industry coverage, were mostly focused on London, the sources said. One person told Bloomberg that the move is Credit Suisse's attempt to put pressure on its dealmakers to bring in new business for the bank.

Of Credit Suisse's two investment banking units, global markets, which focuses on trading, has been hit the hardest with the restructuring in recent years. Under CEO Tidjane Thiam, the lender has shifted its focus to wealth management instead of trading, resulting in thousands of job cuts in the global markets unit since the restructuring began in 2015, according to the June 12 report.

The other unit, investment banking and capital markets, which advises on deals and security issuance, has seen fewer job cuts. Thiam has also set aside additional capital for IBCM over time, despite the unit's pretax income declining by 60% in the first quarter to CHF59 million, Bloomberg said.

"We expect our headcount to increase year on year in IBCM [Europe, the Middle East and Africa] as we continue to invest," Credit Suisse reportedly said, adding that the departures so far have been for "a number of reasons, including voluntary."