I hope you dont have to put lot of efforts to know who heads what?
The Credit Suisse Group is earning more than UBS for the first time in almost a decade after Chief Executive Officer Brady Dougan, age 48,avoided the write-downs that forced UBS to report the biggest-ever quarterly loss by a bank.
Credit Suisse Group, Switzerland's second-biggest bank, said fourth-quarter profit fell 72 percent on lower earnings at the securities unit after write-downs of 1.3 billion Swiss francs ($1.2 billion) on debt and leveraged loans. That missed the 1.43 billion-franc median estimate of 11 analysts surveyed by Bloomberg.
UBS, the world's biggest wealth manager, said on Jan. 30 it had a net loss of 4.4 billion francs in 2007. UBS, Switzerland's biggest bank marked down $14 billion on securities infected by U.S. subprime mortgages.
Managers at Credit Suisse's SPS mortgage-servicing unit alerted the executive board more than a year ago to concerns about subprime assets. By the end of 2006, the company had originated about 40 percent fewer subprime mortgages than in 2005, according to Dougan.
``The hardest thing in all of these is not just seeing the issue but taking action,'' Dougan, told business leaders in Zurich on Feb. 5. ``It's always very difficult to say no.''
Brady Dougan, a former derivatives trader who became Credit Suisse’s chief executive in May after making investment banking the company’s most profitable unit, scaled back debt holdings before the slump led to more than $145 billion in write-downs and loan losses at the world’s biggest banks.
The company got 54 percent of 2006 profit from operations before taxes from the investment-banking unit, which Dougan ran for three years before becoming CEO in May.
Credit Suisse said it is ``well-capitalized and conservatively funded'' and expects ``continuing turmoil in the credit markets'' in the short term.
``I'm confident our 2008 performance will be strong relative to the industry,'' Dougan, 48, said. ``The markets today are full of uncertainty.''
On other hand, Marcel Rohner, age 43, was named UBS's CEO in July has turned to sovereign funds to shore up its finances. The Swiss bank will seek shareholders' approval on Feb. 27 to sell 13 billion francs in bonds that will convert to shares to investors in Singapore and the Middle East.
Credit Suisse's net third-quarter debt write-downs amounted to 2.2 billion francs. The bank, which reported a profit on subprime, said in November it had ``de minimis'' holdings left. By contrast, UBS still held $29 billion of subprime-linked assets at the end of November. Rohner, and Chairman Marcel Ospel told investors in December the positions were created ``by a small group of people in one team.''
Credit Suisse's investment bank may be more resilient as demand for trading and financing slows. It spent 68 cents of every dollar of revenue in the first half of 2007, compared with UBS's 71 percent cost-to-income ratio.
Rohner has cut 1,500 jobs at UBS's securities division since taking over direct control in October. Dougan, who ran the unit at Credit Suisse for three years, is cutting about 500 jobs.
Credit Suisse is still behind in managing money for wealthy clients, attracting 38.2 billion francs in net new money in the first nine months, compared with UBS's 120.2 billion francs. The company plans to hire 1,000 more advisers through 2010 and is investing in the U.S., Singapore and Hong Kong.
My Views
Dougan is doing an excellent job, certainly better than his competitors. Congrats, finally.
UBS's investment bank is suffering a greater loss, against a backdrop of greatly increased headcount and management departures.
Credit Suisse has already pushed ahead of its large rival in terms of I–banking. Now Credit Suisse should concentrate on private banking and institutional asset management as I – banking is so volatile and it goes rotten every four years or so.
At a time when rivals like UBS are seeking to raise capital to plug holes in their balance sheets, Credit Suisse said it aimed to increase its cash dividend.
UBS, the world's biggest wealth manager, said on Jan. 30 it had a net loss of 4.4 billion francs in 2007. UBS, Switzerland's biggest bank marked down $14 billion on securities infected by U.S. subprime mortgages.
Managers at Credit Suisse's SPS mortgage-servicing unit alerted the executive board more than a year ago to concerns about subprime assets. By the end of 2006, the company had originated about 40 percent fewer subprime mortgages than in 2005, according to Dougan.
``The hardest thing in all of these is not just seeing the issue but taking action,'' Dougan, told business leaders in Zurich on Feb. 5. ``It's always very difficult to say no.''
Brady Dougan, a former derivatives trader who became Credit Suisse’s chief executive in May after making investment banking the company’s most profitable unit, scaled back debt holdings before the slump led to more than $145 billion in write-downs and loan losses at the world’s biggest banks.
The company got 54 percent of 2006 profit from operations before taxes from the investment-banking unit, which Dougan ran for three years before becoming CEO in May.
Credit Suisse said it is ``well-capitalized and conservatively funded'' and expects ``continuing turmoil in the credit markets'' in the short term.
``I'm confident our 2008 performance will be strong relative to the industry,'' Dougan, 48, said. ``The markets today are full of uncertainty.''
On other hand, Marcel Rohner, age 43, was named UBS's CEO in July has turned to sovereign funds to shore up its finances. The Swiss bank will seek shareholders' approval on Feb. 27 to sell 13 billion francs in bonds that will convert to shares to investors in Singapore and the Middle East.
Credit Suisse's net third-quarter debt write-downs amounted to 2.2 billion francs. The bank, which reported a profit on subprime, said in November it had ``de minimis'' holdings left. By contrast, UBS still held $29 billion of subprime-linked assets at the end of November. Rohner, and Chairman Marcel Ospel told investors in December the positions were created ``by a small group of people in one team.''
Credit Suisse's investment bank may be more resilient as demand for trading and financing slows. It spent 68 cents of every dollar of revenue in the first half of 2007, compared with UBS's 71 percent cost-to-income ratio.
Rohner has cut 1,500 jobs at UBS's securities division since taking over direct control in October. Dougan, who ran the unit at Credit Suisse for three years, is cutting about 500 jobs.
Credit Suisse is still behind in managing money for wealthy clients, attracting 38.2 billion francs in net new money in the first nine months, compared with UBS's 120.2 billion francs. The company plans to hire 1,000 more advisers through 2010 and is investing in the U.S., Singapore and Hong Kong.
My Views
Dougan is doing an excellent job, certainly better than his competitors. Congrats, finally.
UBS's investment bank is suffering a greater loss, against a backdrop of greatly increased headcount and management departures.
Credit Suisse has already pushed ahead of its large rival in terms of I–banking. Now Credit Suisse should concentrate on private banking and institutional asset management as I – banking is so volatile and it goes rotten every four years or so.
At a time when rivals like UBS are seeking to raise capital to plug holes in their balance sheets, Credit Suisse said it aimed to increase its cash dividend.
By the way did you get your answer - Who among the both looks like a person, who beat after 10 years .. Let me give a tip..Look at that smile..Hmmmm ?
Towards Left is Brady Dougan (CS) - Smile
Towards Rights is Marcel Rohner(UBS - Worried
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