Comments
Credit Suisse said Thursday it plans to separate its Swiss business from its global investment banking operations, secure its position and prevent an overburdening of state finances in the event of a bailout.
The move by the Zurich-based company comes weeks after UBS, Switzerland’s biggest bank, unveiled a similar plan.
UBS was affected by the global financial crisis and bailed out by the government in 2008 to the tune of 31.8 billion Swiss francs (34.9 billion dollars).
The new structure will allow Credit Suisse and UBS to reduce their capital buffers under Swiss regulations. The process of separating the Swiss operations is due to start in mid-2015.
“In the future, Credit Suisse will more closely align the booking of its investment banking business to the region in which it originates from a client and risk management perspective,” the bank said.
Existing subsidiaries would therefore be bundled in two new business entities in Britain and the United States.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.