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Why did this obscure fixed income executive at Credit Suisse earn more than anyone else at the bank last year?

Morning Coffee: Mystery of the 38 year-old Credit Suisse trader on $14m. From secretary to head of hedge funds

São Paulo, Brazil - where Machado was based

Credit Suisse pays 'ok'. In 2015, the average material risk taker at the Swiss bank earned $1.7m - 23% less than at UBS, but an ample amount nonetheless. During the same year, Rob Shafir, the bank's America's chairman, earned $8.2m and CEO Tidjane Thiam, who only turned up in July, earned $4.7m for his inaugural six months. Why, therefore, did Sergio Machado, an unheard of fixed income executive in Credit Suisse's São Paulo office, earn $14m, making him the best paid person at Credit Suisse globally? Why indeed.

Machado's mega pay at Credit Suisse only became apparent this week after it was leaked in a set of court documents. Bloomberg reports that it's all bankers in Brazil are talking about.

What did Machado do to deserve such generosity? Tenure and seniority were both on his side: Machado spent 17 years working for Credit Suisse and was managing director and head of Credit Suisse's Brazilian fixed income business. His $14m included "deferred bonuses from previous years." It still seems very high though, especially as José Olympio Pereira, head of Credit Suisse's Brazilian business, recently described market conditions in the country as "the worst" he'd seen in 30 years. Nor can Machado have been that good:he was laid off in a round of redundancies in April this year. 

Machado's mysteriously large pay is made all the enigmatic by the fact that his father, a politician-turned-oil executive, has recently been in court testifying against some of Brazil's top lawmakers. The younger Machado says he has nothing to do with his father's finances. Helpfully, however, he was able to pay $8m of the $22m fine his father agreed to as part of a plea bargain.

Separately, who said you have to get an impossible-to-achieve internship if you want to work in banking? Dawn Fitzpatrick didn't: she started out as a secretary. And now she's head of hedge funds, equity and multi-asset strategies at UBS America. Well. how about that?


You want to be a 'high touch' sales trader: "They’re expected to know all about their customers, including what’s in their portfolios, how they like to transact and what kind of news is important to them." (Bloomberg) 

Euro-denominated trading will move out of London after a Brexit: “Some organisations moving screen-facing jobs might find Dublin very attractive, but people who need to be closer to clients or sources of assets will consider Amsterdam and Paris.” (Financial Times) 

George Osborne may suspend trading on the London Stock Exchange on Friday morning if Britain votes to leave. (Telegraph) 

Huy Nguyen Trieu, former head of macro structuring at Citigroup, is oft to launch a fintech venture. “I’ve loved my time at Citi, so don’t take it as a move from an unhappy banker moving in fintech.” (WSJ) 

KKR hired Jonathan Conway, formerly Barclays’ Emea head of restructuring, and Pablo Crespo, a former director from London-based private equity firm AnaCap, as partners in Pillarstone, its European platform. (Financial News) 

Mothballed deals are getting dusted off in the hopes that the outcome of the vote will be Remain. (WSJ) 

The European Central Bank is exploring a contingency for Brexit that would force financial institutions to move all their euro- denominated business through a clearing house based inside the eurozone. (The Times)

Ian Hannam's been hiring. (Reuters)

Lawyer moving to become UK M&A chairman at Credit Suisse says there aren't many older bankers left: "When you look around investment banking these days there are fewer guys in their 50s who have been there, done that, got the T-shirt." (Financial News) 

Gael De Boissard goes skiing. (YouTube)

Intern at Citadel? Keep a pen and paper about you. (Citadel) 

Barclays analyst suspend's son's birthday party due to EU referendum. (Reuters) 

There has been only a modest increase in banks’ capital standards since 2007 and UK banks’ leverage ratios are still very low. These leverage ratios indicate that UK banks are highly exposed to a renewed financial crisis. (AdamSmith) 

Photo Credit: filipefrazao


AUTHORSarah Butcher Global Editor

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