The Financial Times reports that the lender’s proposal entails dividing the group into three parts: an advisory part of the business, a “bad bank” to hold risky assets, and everything else. Credit Suisse CH:CSGN CS is planning to reveal the new strategy at its third-quarter results on Oct 27, which the FT reports will include thousands of job cuts.
Earlier this month, Bloomberg reported that the board could revive its First Boston brand and was considering offering investment bankers an equity stake in the business, a proposal raised at an internal town hall.
Credit Suisse has racked up losses as it deals with the fallout from the implosion at Archegos Capital Management as well as the collapse at Greensill Capital. Former head honcho Tidjane Thiam stepped down in February 2020 for failing to manage a corporate spying scandal. This month, Credit Suisse Group announced it would sell its Singapore global trust business, as it faced a $1.27 billion damages claim from Georgia’s former prime minister Bidzina Ivanishvili who accused the bank unit for failing to protect his investments.
Why dont they just liq.