As the media (including us) tended to feature only the more frivolous suggestions Brady Dougan, the head of Credit Suisse's investment banking division, made in his recent memo to staff on the subject of cost-cutting, we thought it only fair to put the memo in context. Here's the full text..

'Improving our cost efficiency is a critical part of our strategy. You recently received a memo from Urs Rohner announcing the launch of a Bank-wide cost management initiative. Many of you have already made significant contributions to the Investment Banking Division's cost program. Now we are asking everyone to be a part of this important effort by challenging all spending to ensure that it is necessary and appropriate. In that regard, I want to let you know about the specific policy changes for the Investment Banking Division that we are now implementing.

Market Data 

We are in the process of aggressively reviewing our market data usage. Over the coming months, you will be asked by the COO of your business (Equities, Fixed Income, Investment Banking, Investment Banking Support) to identify any market data you receive that is not truly essential for the performance of your specific responsibility. All new market data service requests will require COO approval. We believe that by operating at best in class standards in this area, we can achieve significant savings.

Technology Related Purchases

Working with IT, we have determined that our existing hardware, software, and communications inventory meets our current operating needs. As a result, we will very carefully consider all requests to purchase additional technology and will approve only those that are essential.

Non-Client Travel and Entertainment -

All non-client travel will now require the pre-approval of your COO. We have asked the COOs to limit this travel to that which is absolutely necessary. As an alternative, I encourage you to make use of our audio or video conference capabilities.

We will no longer be holding "offsite" internal meetings. All internal meetings should be held in one of our conference rooms or via audio or video conference.

Employees from the same office will no longer be reimbursed for meals or entertainment with colleagues; however, we will continue to reimburse Managing Directors for reasonable expenses associated with appropriate "team meals."

Client Events

We need to carefully evaluate all client events to ensure that we are making a good investment of our money. Your IB Management Committee member and COO will be working with you to review all existing and proposed client events, including the list of proposed attendees and total cost of the event (including travel and any client entertainment contemplated). We also need to be mindful of having an appropriate balance in numbers of clients and employees attending such events.

Office and Work Station Moves

We have agreed that we will limit office moves to only those that are truly essential. All moves going forward will require COO approval.

Recruiting

We are in the process of evaluating our hiring for the balance of the year and beyond. For any hires that are approved, we will be limiting the use of external recruiters (agency and retained search) to MD positions only. Any use of external recruiters will require your COO's pre-approval. I am confident that we will be successful in fulfilling the vast majority of our recruiting needs using low and no fee sources (for example, job boards, employee referrals etc). I also want to remind you that all approved hiring must be coordinated with Human Resources.

It is also very important that we adhere to our existing policies, which we currently do not do consistently. Policies for which we need to improve our compliance include:

• Using our designated travel agency for all business travel
• Paying for all business expenses using your Credit Suisse corporate card
• Using calling cards while traveling
• Using the Bank's toll free and internal routing system to reach a Credit Suisse office while traveling
• Ordering office supplies and equipment only through our approved internal processes
• Using color copying only for client presentations

In the coming months, we will be implementing a variety of changes to our expense policies both Bank-wide and specifically for the Investment Banking Division. I ask everyone to lend support to these efforts. Managing our expenses is both a critical part of our strategy and our jobs. You can do your part by challenging all spending to ensure that it is necessary and in compliance with our policies.

Thank you for your support.

Brady Dougan

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