Credit Suisse struggles to finish revamping as deadline approaches

By Ayushi Garg  | Date: October 25, 2022

Credit Suisse struggles to finish revamping as deadline approaches

Credit Suisse Group AG is reportedly racing to finalize sales of a portion of its business, which might restrict the amount of cash it needs from investors with only days before the bank presents an overhaul.

The troubled Swiss lender aims to put an end to a run of scandals and legal lawsuits with a restructuring that would probably involve cutting back on an erratic investment bank in London and New York in order to concentrate on banking for the wealthy in Switzerland.

According to sources, the Swiss Financial Market Supervisory Authority (Finma) is closely monitoring the restructuring and is in constant touch with the bank, stressing the sensitivity of the redesign.

However, with only a few days until the announcement on October 27, it's still unclear which businesses can be sold, at what price, and how much the bank may need to ask of its shareholders.

Notably, analysts stated that the business may require up to USD 9 billion for restructuring, some of which may need to come from investors and some of which may come from the sale of assets.

Sources cited that management plans to sell companies, such as securitized products, from its investment bank, but they also noted that negotiations will probably drag on right up until the announcement of the redesign.

Initial expressions of interest in the banks current process, which may involve selling its U.S. asset management division, are due at the end of this week. However, there was no assurance that a transaction would occur.

Additionally, Credit Suisse disclosed its plan to sell an 8.6% share in Allfunds Group through an accelerated book-building sale, valued at USD 346.96 million. Moreover, the company is also thinking of separating a portion of its consulting and investment banking operations into a new company called First Boston, which would attract outside investors.

Source Credit:

https://bfsi.economictimes.indiatimes.com/news/banking/credit-suisse-scrambles-to-finalise-revamp-as-deadline-looms/94984296#:~:text=Credit%20Suisse%20scrambles%20to%20finalise%20revamp%20as%20deadline,investors%20and%20some%20from%20the%20sale%20of%20assets.

About Author

Ayushi Garg     ibmag.com

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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