You are here: Home » International » News » Finance
Bank of England poised for another big interest rate hike amid inflation
Business Standard

Credit Suisse considers splitting investment bank in three: Report

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

Topics
Credit Suisse | Investment Banks

Reuters 



Photo: Bloomberg
Photo: Bloomberg

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 securitised products business to prevent a damaging capital raise, the report said, citing people familiar with the plans. declined to comment on the story when contacted by Reuters.

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 as saying.

"It would be premature to comment on any potential outcomes before then."

Chair Axel Lehmann had appointed Ulrich Korner 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.

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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, September 22 2022. 16:19 IST

RECOMMENDED FOR YOU

.