"Rip up your contracts" calls Credit Suisse First Boston bosses

Credit Suisse First Boston has requested that staff tear up their contracts as attempts are made to curb continual losses.

In a meeting with directors last week in New York, Adebayo Ogunlesi CSFB's investment banking head, has asked for contracts to be torn up. It is reported that about 60 bankers are believed to have agreed to give up guaranteed pay deals with most staff expected to follow suit.

There have been more than 54,000 job cuts on Wall Street in the past 18 months as most investment banking businesses suffer. CSFB's former chief executive, John Mack, has already cut 4,500 jobs in the past 12 months in a move that helped the unit return CSFB to the black in the second quarter.

Therefore matters were worsened when its parent company, Credit Suisse, announced it would be posting a third-quarter operating loss as falling revenues affected badly.

The move comes amid reports that CSFB's rival JP Morgan Chase is preparing to cut up to 4,000 staff by the end of the year. Last month JP Morgan warned of job cuts as trading remained sluggish.

Also, amid the fears that the Swiss financier Martin Ebner was selling his 5% stake Credit Suisse, shares in the company slumped a further 7% yesterday to SFr20.30.