Credit Suisse pares back investment banking, sharpens focus on the rich

Q3 net profit falls 21%, expects net loss for Q4; closing most of its prime broking business after Archegos scandal

Credit Suisse will pare back its investment bank and focus on building its wealthy client base, the Swiss bank said on Thursday, as it regroups following a string of scandals.
 

The bank will shutter much of its prime broking business that dealt with hedge funds such as failed investment outfit Archegos, instead ploughing an additional 3 billion Swiss francs ($3.3 billion) into its private bank for the wealthy, which will be centralised into one global business.
 

"Risk management will be at the core of our actions, helping to foster a culture that reinforces the importance of accountability and responsibility," said