The managers of the second largest Swiss bank are holding a decisive meeting


After Credit Suisse racked up billions of dollars in losses in recent years and replaced former CEO Thomas Gottstein, the fate of the scandal-plagued investment banking business is on the table, and they also want to avoid a negative impact on the wealth management business.

The bank must face a capital shortfall of at least 4 billion Swiss francs to improve its financial strength, finance its restructuring and create the conditions for growth, Deutsche Bank analysts believe. news agency report according to

Disagreements within management will complicate decision-making at this week’s board meeting in Singapore, but the bank has publicly promised to update investors on its plans within weeks. Executives disagree on how much capital markets activity and trading services the bank should keep in-house.

Competitor UBS has long argued that it needs a significant but downsized investment bank to support private banking. Julius Baer conducts trading and some advisory services in-house, while providing clients with access to investment products from other financial services firms.

Analysts at Deutsche Bank said the benefits of combining asset management and investment banking were never seen in Credit Suisse’s numbers, as pure investment banking or asset management firms outperformed the company.

If it were to sell its investment banking business at book value, Credit Suisse would free up about 3 billion Swiss francs in capital, according to analysts at Deutsche Bank.

Cover image: Getty Images


Source: Portfolio.hu – Bank by www.portfolio.hu.

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