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October 10, 2022

Credit Suisse initiates steps to boost finances amid proposed overhauling

Credit Suisse Group has bolstered efforts to divest or reduce shares in major businesses as part of a planned overhauling to revamp its operations, The Wall Street Journal has reported citing people privy to the development.

The Swiss banking giant has already received offers from nearly 10 bidders for its securitised products arm, one of the highest profit-making ventures of the bank, added some of the sources.

In July this year, Credit Suisse put its securitised products unit up for sale in a bid to search for an external investor to save capital.

Sixth Street Partners, Centerbridge Partners and Apollo Global Management are said to be in the fray.

Early this year, Sixth Street Partners poached one of the senior bankers from the Swiss group to set up a similar organisation, stated a few people.

Recently, Credit Suisse has faced immense pressure over its restructuring plans. Online rage over its financial condition has also led to a drop of its shares and debt in recent times.

The Swiss wealth manager is set to announce its overhaul plan on October 27, 2022. In the upcoming announcement, the group is expected to outline its plan on the sale of its securitised products group, the bond buyback and a host of other measures.

Last year, the group witnessed over $5bn of loss from the collapse of its client Archegos Capital Management.    

Previously, Credit Suisse noted that it would sell parts of its investment bank to be in a safer position and to concentrate on its core wealth management business.

In addition, the bank has held informal discussions with investors on raising new funds and is looking into other measures to strengthen its business.

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