GFMA: News on the global financial markets

Credit Suisse will rein in investment bank and cut workforce
Credit Suisse Group reported a drop in third-quarter revenues, leading the bank to cut its workforce and shrink its investment bank. The job cuts bring the Swiss bank's total to about 3,500 this year. Credit Suisse CEO Brady Dougan said the banking industry faces significant challenges. "The longer-term secular trends will likely be challenging for some time to come," he said. The Wall Street Journal (tiered subscription model)(02 Nov.), Bloomberg Businessweek(01 Nov.)

Horta-Osorio will temporarily step down as CEO of Lloyds
Doctors advised Antonio Horta-Osorio to step down as CEO of Lloyds Banking Group because of stress. Executives at the bank said Horta-Osorio's medical leave could last six months or more. Finance Director Tim Tookey might be asked to serve as acting CEO. Bloomberg(01 Nov.), Financial Times (tiered subscription model)(02 Nov.)

Additional capital requirements could be trouble, expert says
Jose Maria Roldan, former chairman of the standards-implementation group of the Basel Committee on Banking Supervision, said national regulators should be careful about subjecting banks to additional capital requirements. Roldan told participants at an industry conference that tougher capital requirements could negatively affect economic growth. "I think we have to stop this upward bargaining on the level of capital," he said. "There is a limit of how high capital requirements can go, and there are economic consequences on having a capital ratio that is far higher." Risk.net (subscription required)(01 Nov.)

Small investors don't benefit from MiFID reforms, group says
EuroInvestors, which represents shareholder groups, said the latest version of the Markets in Financial Instruments Directive has not helped retail investors. Financial Times(tiered subscription model)(01 Nov.)

FSA leaders agree regulators need to be more accountable
Officials at the UK Financial Services Authority support efforts to make the Financial Conduct Authority, due to launch in 2013, more accountable and transparent. Financial Times(tiered subscription model)(01 Nov.)

As head of ECB, Draghi's challenges start at home
Mario Draghi succeeded Jean-Claude Trichet as president of the European Central Bank. A the sovereign-debt crisis rages, some of Draghi's immediate concerns centre on Italy, his home country. The Wall Street Journal (tiered subscription model)(01 Nov.)