Morgan Stanley shares have had a total return over 110% since the start of 2020, versus over 65% for Goldman. Why companies don't want to float in London anymore: “There are no domestic equity investors here - everything else is a symptom.” (Financial Times) Harris Associates, which was once one of Credit Suisse's largest and most loyal shareholders, has sold its stake, saying, ' Why go for something that is burning capital when the rest of the sector is now generating it?” It's also raised questions about the lack of transparency around CS First Boston and the price achieved for the sale of the securitized products group to Apollo. This only came to might after one tried to resign and discovered he was going to have to wait a long time to do so. The New York Post reports that they're working in algo trading technology and have six-month notice periods. Separately, JPMorgan's technology function includes 100 people that the bank particularly does not want to leave. Some may join as partners others can join with the lure of making partner one day - much like at Goldman Sachs. Klein is already said to be on the lookout for flagship CS First Boston hires. The departure of tens of highly paid but demotivated existing bankers would open an opportunity to recruit some new and energized people instead. It's always possible, though, that Michael Klein will welcome people leaving. The hope will be that last year's $300m in retention bonuses and the clawback of bonuses for anyone earning more than $250k will be sufficient to keep people in place, but this may underestimate their disgruntlement at being shunted down the hierarchy.

The question for CS First Boston now is how it keeps hold of all those people who don't make partner there. Last week's exit of Nohshad Shah, Goldman's EMEA head of rates sales for hedge fund Marshall Wace, illustrates what happens when someone who really wants to make partner finds themselves thwarted in a year when bonuses are also not great.

'Hundreds' of people attended last week's meeting, but only a subset of them will receive the new prize. It's the latter that's likely to be particular contentious. The New York meeting reportedly touched upon marketing CS First Boston, strategies for Asia and Europe, the fact that the 'boutique bank' will also be big into private equity and leveraged finance, and the formation of between 50 and 100 partners in the style of Goldman Sachs. Some have been talking to Bloomberg ahead of this communication. Now, they have been returned to their environments to report on what was said. Last week, senior Credit Suisse bankers travelled to New York for a week-long pep talk with Michael Klein, their new overlord and the man who will run CS First Boston if and when it becomes a separate entity.

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