Daily Management Review

Credit Suisse is looking for ways to rebuild business after a series of scandals


The Financial Times reported on Thursday that Credit Suisse Group AG has devised a plan to divide its investment banking division into three parts. In this way, the Swiss bank is attempting to revive after three years of nonstop scandals.

The bank intends to sell profitable sections like its securitized products business, according to proposals made to its board of directors, in order to avoid a catastrophic capital increase, the newspaper stated, citing reliable sources.

Reuters contacted Credit Suisse for comment, but they did not respond.

The investment bank would be divided into three parts: the advising business of the group, which might later be spun off into a separate firm; a "bad bank" with high-risk assets planned for winding down; and the rest of that business.

The publication cited Credit Suisse as stating, "We pledged to update on the progress of a complete review of our strategy when we report our Q3 results. It would be premature to speculate on any prospective results until then."

source: ft.com, reuters.com