Swiss bank Credit Suisse is reportedly considering splitting its investment bank into three as part of a new strategy to save itself from years of scandal.
The Financial Times reports that the lender’s proposal entails dividing the group into three parts: an advisory part of the business, a “bad bank” to hold risky assets, and everything else. Credit Suisse CH:CSGN CS is planning to reveal the new strategy at its third-quarter results on Oct 27, which the FT reports will include thousands of job cuts.
Earlier this month, Bloomberg reported that the board could revive its First Boston brand and was considering offering investment bankers an equity stake in the business, a proposal raised at an internal town hall.
Credit Suisse has racked up losses as it deals with the fallout from the implosion at Archegos Capital Management as well as the collapse at Greensill Capital. Former head honcho Tidjane Thiam stepped down in February 2020 for failing to manage a corporate spying scandal. This month, Credit Suisse Group announced it would sell its Singapore global trust business, as it faced a $1.27 billion damages claim from Georgia’s former prime minister Bidzina Ivanishvili who accused the bank unit for failing to protect his investments.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/IDR: BI to eventually shift its intervention level higher to 15,500 – Credit SuisseUSD/IDR has continued to push higher in tandem with US yields. Economists at Credit Suisse raise their USD/IDR forecast range to 14,800-15,500 (from 1
Read more »
Swiss central bank hikes interest rates by 75 basis points, bringing them out of negative territoryThe Swiss National Bank on Thursday raised its benchmark interest rate to 0.5%, a shift that brings an end to an era of negative rates in Europe.
Read more »
Swiss National Bank raises interest rates by 75 basis pointsSwitzerland's National Bank on Thursday raised interest rates for the second time in as many meetings, catching up with other central banks as the country...
Read more »
On Creates Running Shoe Partially Made From Carbon EmissionsThe Swiss company is researching sustainable alternatives for the rest of the Cloudprime shoes.
Read more »
Breakingviews - First Boston deserves a selective revivalOn Wall Street, second chances happen – maybe for brands as well as people. Credit Suisse is considering reviving the defunct First Boston name to rebadge its investment bank, one of several ideas that could feature in Chief Executive Ulrich Koerner’s strategic review next month . It might restore some luster to the Swiss lender’s second-rate dealmaking operations. Or at least, it may be a step closer to setting the division free.
Read more »