Credit Suisse unveils ‘radical’ strategy as 3Q loss hits $4B
GENEVA — Swiss bank Credit Suisse announced Thursday a “radical Strategy” to overcome recent troubles that have damaged its reputation. The Zurich-based bank announced plans for reducing costs, lowering staff numbers and reducing risk. It also announced plans to revive the CS First Boston investment banking brand, which was once a stalwart on Wall Street. The bank reported a loss of 4 billion Swiss francs ($4.1 billion) in the third quarter. The “historical moment” in Zurich’s bank’s history, according to Ulrich Koerner, is when Credit Suisse acknowledged a “disappointing” performance in a time of market uncertainty and macroeconomic uncertainty.
Chairman Axel Lehmann stated that the bank had become “unfocused” and that its board had evaluated its future direction. Today we are announcing the results of that process –a radical strategy, and a clear execution program to create a stronger bank with a solid foundation, focused on clients and their needs,” Lehman stated, insisting that a “cultural transformative” was underway.
The bank plans to reduce its cost base to 15%, or 2.5 billion Swiss Francs ($2.5billion). 2025, stated that a “headcount decrease” of approximately 5% of its workforce — roughly 2 ,700 workers — was underway.
Credit Suisse is not the first to seek transformations. It has had problems with hedge fund investments and bad bets. Last week it announced settlements in the United States and France.
The bank announced that it had reached a deal to transfer “significant” parts of its securitized product group to Apollo Global Management.
Credit Suisse reported that revenues rose 4% to $3.8 billion ($3.9 billion) in the third quarter.
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