Credit Suisse sells most of its securitized products business to Apollo as it speeds up restructure

  • 📰 CNBC
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 72%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

Credit Suisse to sell securitized products business to Apollo as it accelerates restructure

The bank said the move represented an "important step towards a managed exit from the Securitized Products business, which is expected to significantly de-risk the investment bank and release capital to invest in Credit Suisse's core business.", after battling sluggish investment banking revenues and litigation costs relating to a slew of legacy compliance and risk management failures.

Central to the restructure plan was an offload of risk-weighted assets , with around $10 billion of these accounted for by Tuesday's transactions, the bank said. "The approximately USD 20 billion of remaining assets, which will generate income to support the exit from the SPG business, will be managed by Apollo under an investment management relationship with an expected term of five years to be entered into at the first closing," Credit Suisse added in a statement.

"Under the terms of the transactions contemplated with Apollo, Credit Suisse's CET1 capital ratio is expected to be strengthened by the release of RWAs and the recognition, upon closing, of the premium paid by Apollo, whereby the final amount will depend on discount rates and other transaction-related factors."

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.

Fr Canoogan opines: this is setting off alarm bells...a dip into the 2008 archives came up with a danger signal...it was securitized products that started that whirlpool of despair, with Leaman Bro's spinning into oblivion...now maybe it's a Swiss Avalanche?

Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 12. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Payments company Curve bids for BlockFi's 87,000 credit card customersA Curve spokesperson has confirmed the payment company is currently in the process of trying to negotiate a deal to acquire BlockFi’s credit card customers. Till they look at their books and walk away… I reluctantly paid my ballance. But my rewards were worth more. :( And they froze all my Bitcoin rewards sitting on the exchange. I don’t know who would keep using the card if they don’t make good on those rewards. curve_usa I wouldn’t pay much for that, it may be worth a lot less than you think.
Källa: Cointelegraph - 🏆 562. / 51 Läs mer »