Categories: Business

Credit Suisse Considers Splitting Investment Bank in Three

Credit Suisse Group AG 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 securitized products business to prevent a damaging capital raise, the report said, citing people familiar with the plans.

Credit Suisse declined to comment on the story when contacted.

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.

Sources 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, sources 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.

Reuters

Follow us on:

AriseNews

Recent Posts

IGP Orders Investigation into Death of Ilorin Detainee Jimoh Abdulquadri in Police Custody

IGP Egbetokun has ordered an investigation into Jimoh Abdulquadri’s death in police custody, promising justice…

2 hours ago

Trump Dismisses Claims That Elon Musk Holds Real Power Behind US President-Elect

Donald Trump has rejected suggestions that Elon Musk is the true influence behind the newly…

3 hours ago

Tiger Woods’ 15-Year-Old Son Charlie Achieves His First Hole-in-One

Tiger Woods' son Charlie has achieved his first golf hole-in-one during the final round of…

3 hours ago

New Zealand Rejects Cook Islands’ Bid For A Separate Passport

New Zealand has rejected the Cook Islands’ proposal for a separate passport, requiring full independence…

3 hours ago

Honda, Nissan Eye Major Merger, Aim to Finalise Deal by 2025

Honda and Nissan plan a merger to create the world’s third-largest automaker, aiming to finalise…

3 hours ago

Trump Chooses Ex-Bank President As Latin America Envoy Despite Alleged Affair Scandal

Trump has selected ex-bank president Mauricio Claver-Carone as Latin America envoy, despite past misconduct allegations…

3 hours ago