Credit Suisse weighs splitting investment bank into three (FT)
https://www.ft.com/content/338f83f5-816b-4222-95fa-3b6d19373289
Credit Suisse has drawn up plans to split its investment bank into three and resurrect a “bad bank” holding pen for risky assets, as the Swiss lender attempts to emerge from three years of relentless scandals. Under proposals put forward to the group’s board, Credit Suisse hopes to sell profitable units such as its securitised products business in a bid to stave off a damaging capital raise, according to people familiar with the plans. Chair Axel Lehmann installed Ulrich Körner as chief executive 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 board and executive team are planning to unveil the new strategy — which is expected to include thousands of job cuts — at the bank’s third-quarter results on October 27. The latest proposals under consideration would see the investment bank divided into three parts: the group’s advisory business, which could 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.
Wow this is big news, any insights from CS insiders ?
Bump - bad place to intern now?
Wondering ab this as well
Terrible
Also, the possibility of them exiting the US? Woah
https://www.cnbc.com/2022/09/22/credit-suisse-weighs-capital-hike-looks…
Incoming FT analyst at CS... How will this play out for us? Should I be job searching? In a strong group at the bank but really don't know what to do.
CS is a good brand - better than most - others may disagree but I would lateral pretty quickly into FT. Shouldn't be hard to move to a BAML or Citi / other BB in your product/coverage
Lmao “handing bankers equity” and then spinning the unit out sounds like a suicide mission... sponsors business is their bread and butter
European banks…
I’m an incoming SA and this is making me sick lol
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