Credit Suisse board considering splitting investment bank into three parts
The board of Credit Suisse is considering splitting up its investment bank into three.
Among proposals put forward by its leadership are the resurrection of a “bad bank” for risky assets.
Reported first by the Financial Times, under proposals the bank would look to sell profitable units in a bid to offset damaging capital raise.
Proposals would split the investment bank its an advisory businesses, a ‘bad bank’ to hold high-risk assets and the remainder of the firm.
In a statement to the FT, Credit Suisse said: “We have said we will update on progress on our comprehensive strategy review when we announce our third-quarter earnings”
“It would be premature to comment on any potential outcomes before then.”
The bank has been mired in scandals over the last three years, including a corporate spying row in.
It was also hit by a series of downgrades from credit analysts, raising its borrowing costs. It is also planning to cut thousands of jobs which could impact 10 per cent of its global workforce.