Zurich, Sept. 22 (BNA) Credit Suisse Group has made plans to split its investment bank into three, the Financial Times reported, Thursday, as the Swiss lender attempts to emerge from three years of relentless scandals.
The report, citing people familiar with the plans, said the bank is looking under proposals to the board of directors to sell profitable units such as the securitized products business to prevent harmful capital appreciation.
The proposals could divide the investment bank into three parts: the advisory business of the group, which may be separated at a later time; “Bad bank” to hold risky assets that will be wiped out; And the rest of the business.
“We said we would update on the progress of our comprehensive strategy review when we report third-quarter earnings,” the report quoted Credit Suisse as saying. It would be too early to comment on any possible outcomes before then.
Reuters reported earlier this month that Credit Suisse, Switzerland’s second-largest bank, was also looking to cut about 5,000 jobs, about 1 in 10, as part of a cost-cutting drive.
In May, Reuters said the bank was in the early stages of studying options to boost its capital after a series of losses that eroded its financial reserves.
MI