Investment

Credit Suisse considers splitting investment bank in three – FT

The logo of Swiss bank Credit Suisse is seen at an office building in Zurich, Switzerland September 2, 2022. REUTERS/Arnd Wiegmann/File Photo

Register now for FREE unlimited access to Reuters.com

Sept 22 (Reuters) – Credit Suisse Group AG (CSGN.S) has drawn up plans to split its investment bank in three, the Financial Times reported on Thursday, as the Swiss lender attempts to emerge from three years of relentless scandals.

Under proposals to the board, the bank is looking to sell profitable units such as its securitised products business to prevent a damaging capital raise, the report said, citing people familiar with the plans. https://on.ft.com/3BZHTUd

Credit Suisse declined to comment on the story when contacted by Reuters.

Register now for FREE unlimited access to Reuters.com

The proposals could see the investment bank split into three parts: the group’s advisory business, which might be spun off at some later point; a “bad bank” to hold high-risk assets that will be wound down; and the rest of the business.

“We have said we will update on progress on our comprehensive strategy review when we announce our third-quarter earnings,” the newspaper report quoted Credit Suisse as saying. “It would be premature to comment on any potential outcomes before then.”

Chair Axel Lehmann had appointed Ulrich Körner as chief executive officer in the summer with a brief to carry out a radical shake-up of the bank, which has been hit by a corporate spying scandal, investment fund closures, a record trading loss and a litany of lawsuits in recent years, the report said.

Reuters reported earlier this month that Credit Suisse, Switzerland’s second-biggest bank, was also looking to cut around 5,000 jobs, about one position in 10, as part of a cost-reduction drive. read more

In May, Reuters said the bank was in the early stages of weighing options to bolster its capital after a string of losses had eroded its financial buffers. read more

Register now for FREE unlimited access to Reuters.com

Reporting by Juby Babu in Bengaluru; Editing by Sherry Jacob-Phillips

Our Standards: The Thomson Reuters Trust Principles.

Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button
SUBSCRIBE TO OUR NEWSLETTER

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.