Credit Suisse reorganises in order to cut costs
Credit Suisse has announced that it is merging business units and moving around top executives in order to reduce costs.
The Swiss bank has decided to merge its private banking and asset management divisions into one business unit to be headed by Hans-Ulrich Meister and Robert Shafir.
Meister will continue to head private banking in Switzerland, Europe and Asia, as well as all Swiss client businesses. Robert Shafir will head private banking and wealth management products in the Americas.
Credit Suisse also re-inforced its commitment to the fixed-income business by promoting one of its debt bankers to co-run its investment bank. This is in contrast to rival UBS, which announced that it would exit many fixed-income activities.
Chief Executive Brady Dougan said the new streamlined structure will produce further synergies and help reduce expenses across the bank.
The reorganisation comes two weeks after Credit Suisse said it would merge its retail and private banking arms in Switzerland.
"The new structure will create one of the world's leading integrated wealth management businesses and one of the first global investment banks that is in alignment with the new regulatory reality," said Credit Suisse Chairman Urs Rohner.
"The changes announced today are a stepping-up of our strategy. They will [...] further reduce complexity across the bank for the benefit of all our clients and stakeholders."
In a separate matter, Reuters reported on Tuesday morning that the New York Attorney General will sue the bank for misleading investors that suffered huge losses from mortgage-backed securities. The lawsuit alleges that Credit Suisse distorted the quality of the securitized mortgage assets.
Shares of Credit Suisse were trading flat on Tuesday morning at 99.56 Swiss francs.