MARC RUBINSTEIN: Credit Suisse investment bank to take back-seat role

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 63%

Business News News

Trying to get out of investment banking is fraught and expensive. Is it even possible?

07 September 2022 - 10:23For years, European banks spent heavily to bolster their investment-banking franchises. The problem is that unwinding them is a costly project too.

Even after the global financial crisis, Credit Suisse remained committed to the vision. In 2015, outgoing CEO Brady Dougan told shareholders that the firm had strengthened its position in investment banking, continuing to win market share. “Some argue for a change of tactics,” he said. “But instead, we have persevered and worked to reshape this business into a streamlined division that is focused on core clients.”Yet by then both regulators and investors had soured on the strategy.

First, it’s expensive. About 18,000 people are currently employed in the investment-banking division, and letting them go entails heavy redundancy charges. It cost Credit Suisse 1.3-billion Swiss francs upfront to execute its 2015 restructuring plus up to another 1.2-billion Swiss francs over the duration of the three-year program.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

I always hated bitcoin and thought it was a scam, till I met ALLISON_GRILLO , I made my first successful withdrawal of $70,000 thanks to ALLISON_GRILLO now am financially stable.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines