Credit Suisse To Slash Commercial Mortgage Debt Group
-- Sarika Gangar
Credit Suisse is expected to make deep cuts to its commercial mortgage group in the coming days as part of larger firm-wide layoffs. According to market participants who have spoken to Credit Suisse executives, the firm will reportedly maintain a skeleton group in New York.
The cuts are expected to include the bulk of the bank's loan originators, both at Credit Suisse and at its origination arm, Column Financial. Calls to Rob Brennan, who heads the group at Credit Suisse, and Kieran Quinn, president of Column, were not returned by press time. A call to a Credit Suisse spokesman was referred a press release that stated that the firm is going to cut 11% of its global staff.
Credit Suisse, like many of its peers, believes that the commercial mortgage-backed securities market will remain dormant in 2009. "Credit Suisse was one of the last banks to lay off staff, and I think this move signifies that they don't think Wall Street will be originating any conduit loans in 2009," one investor added.
Last month, Morgan Stanley made similar cuts to its commercial real estate group.
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