The restructuring marks a victory for global markets and its head Brian Chin, who helped transform the business from a perennial underperformer to a key profit contributor. Its fortunes have diverged from that of the advisory business. Longtime head Jim Amine left earlier this year and was replaced by two-decade veteran David Miller after a run of bad results.
"Our strategy works," Credit Suisse said in a statement."We are a leading, global wealth manager with strong investment banking capabilities. On an ongoing basis, we consider a broad range of options to identify ways to further improve how we serve our clients and achieve our strategic goals in a compliant, profitable way. We are in a constant dialogue on these topics with our investors.
Luckin Coffee and Wirecard underscored the need for more efficient controls. Credit Suisse organised a margin loan for Luckin founder Lu Zhengyao. In April, the bank took a large hit in its Asia business, setting aside about US$100 million for soured loans that mostly related to three cases, the largest of which was Luckin.
The bank also helped sell US$1 billion of Wirecard-linked securities last year after questions were raised about the German company's accounting. SoftBank had initially agreed to buy the convertible debt, but then cut its exposure through a series of transactions. Last month, Wirecard filed for insolvency.
Creidt Suisse's ties to SoftBank were also a factor in an internal probe of the bank's supply-chain funds. The investment vehicles hold short-term corporate loans and finance a number of startups backed by the SoftBank Vision Fund. The loans are sourced by Greensill Capital, which is also backed by SoftBank. The bank told clients earlier this month it would change its guidelines to reduce the maximum exposure to a single borrower after the review.
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: The Straits Times - 🏆 8. / 63 Read more »
Source: The Straits Times - 🏆 8. / 63 Read more »