- Credit Suisse Group AG (NYSE:CS) weighs splitting its struggling investment bank business into three parts, which could involve thousands of job cuts as the Swiss bank reshapes its business.
- The bank has drawn up plans to split its beleaguered investment banking unit, including resurrecting a so-called ‘bad bank’ to hive off unwanted assets, the Financial Times reported citing people familiar with the matter.
- The latest proposals under consideration would see the investment bank divided into three parts:
- The advisory business, which could be spun off at some later point,
- Bad bank to hold high-risk assets that will be wound down.
- The rest of the business.
- Chair Axel Lehmann installed a new chief executive, Ulrich Körner, with a mandate to overhaul its business. In its second-quarter results, the bank said it is evaluating strategic options for the securitized products business.
- Related: Credit Suisse Considers Axing 5,000 Jobs In Cost Reduction Drive.
- However, it is set to unveil further detail on the new strategy during its third-quarter results on 27 October.
- In a statement to the Financial Times, Credit Suisse said that it will reveal an update on its plans during its third-quarter results and that it would be “premature to comment on any potential outcomes before then.”
- Price Action: CS shares traded 0.80% lower at $4.96 premarket on the last check Thursday.
U.S., Russia Defense Firms Aim to Sell Arms to Vietnam at Hanoi Fair
-Reuters
https://www.reuters.com/world/asia-pacific/vietnam-holds-first-international-arms-expo-hanoi-2022-12-08/
