The pain of Credit Suisse (CS) and its holdover peers, such as Deutsche Bank (DB), is incredibly easy to understand. There is no need for penetrating the depths of technical jargon in interest rate swaps, forward warehousing securities or even the whole varied business of investment banking. In its Q1 2014 quarterly report, Credit Suisse spells out everything you need(ed) to know:

In Investment Banking, we will continue to focus on our market-leading and high-returning businesses, including our top three equities franchise, a strong and profitable underwriting and advisory business and a fixed income franchise focused on high returning yield businesses. [emphasis added]

The first highlighted portion relates very much to the second, as high yield was the basis for their “profitable underwriting and advisory business” as much as it was in their trading book. That’s the real point in all of this, as what these banks provide through their investment banking operations (FICC) is a “soup to nuts” platform of financial resources and efforts that turn (bubble) demand for product into not just securities but securities with a “market” behind them. From origination or underwriting to warehousing and distribution and then finally trading itself, FICC is the liquid grease that makes the financial system work.

Given what has transpired over the last nearly two years, it is actually surprising that Credit Suisse has not fared far worse. That may be what is in store down the road, as banks have a lot of pliability in especially these esoteric functions but time will catch up at some point. From that, we can make some pretty reasonable assumptions about those internals:

Credit Suisse Group AG Chief Executive Officer Tidjane Thiam pledged to accelerate a restructuring through deeper cost cuts and by eliminating an additional 2,000 jobs as he forecast a first-quarter loss.

The bank may post a net loss in the first quarter, Thiam said on a conference call with reporters on Wednesday after announcing the second restructuring plan in five months. Trading revenue is seen dropping as much as 45 percent in the first quarter, with the bank looking to cut risk-weighted assets in that business by another 20 percent to about $60 billion this year.