Credit Suisse Group AG may need to find new ways to serve clients who generate as much as $750 million of revenue at its U.K. subsidiaries after Britain leaves the European Union, Chief Financial Officer David Mathers said. Losing access to European markets would endanger 10 percent to 15 percent of income at the two units, which have a revenue base of $4 billion to $5 billion, Mathers said in an interview this week in Zurich.
Category: Credit Suisse Group
Credit Suisse Bets on Old Continent Amid Breakup Fears
Credit Suisse Group AG is seeing a pickup in its private banking business in Europe as clients come out of hibernation to seek counsel on how to protect their fortunes from shock outcomes of coming national elections. “I would expect Europe to rebound in profitability” for reasons including the political uncertainty, Iqbal Khan, head of international wealth management, said in an interview at the bank’s headquarters in Zurich.
Credit Suisse Keeps Swiss IPO Options Open While Job Cuts Deepen
Credit Suisse Group AG plans to cut as many as 6,500 jobs this year and is keeping its options open as it prepares for a partial sale of its Swiss unit to strengthen capital. The share sale “is a very good option, it’s on the table,” Chief Executive Officer Tidjane Thiam said in a Bloomberg Television interview Tuesday.
Credit Suisse Said to Consider Dublin Expansion as Brexit Nears
Credit Suisse Group AG is exploring options for expanding in Dublin, as the U.K. moves closer to exiting the European Union, according to two people familiar with the matter. The Irish capital is emerging as a favored location for the bank’s so-called back-office jobs, said one of the people, who asked not to be identified because a final decision hasn’t been made.
Credit Suisse Tops Market in Zurich After Final $5.3 Billion Mortgage Settlement with DoJ
Credit Suisse Group shares gained Thursday after the investment bank followed rival Deutsche Bank in finalizing a multi-billion dollar mortgage bond settlement with the U.S. Department of Justice. Credit Suisse Group shares rose to the top of the leaderboard in Zurich Thursday after the investment bank followed its German rival, Deutsche Bank AG , in finalizing its multi-billion dollar mortgage bond settlement with the U.S. Department of Justice.
Long-Short Hedge Funds Are Ditching the Shorts to Focus on Longs
What happens when you take the “short” out of a long-short trading strategy? Some hedge funds are about to find out. Equity long-short fund managers, the biggest category in hedge funds, hold the fewest bearish stock bets on record, data compiled by Credit Suisse Group AG show.
Credit Suisse May Not Need IPO to Bulk Up Buffers, Herro Says
Credit Suisse Group AG may not need to sell stock in its Swiss unit to raise capital after the bank resolved a major legal issue, according to Harris Associates, one of its biggest investors. The bank announced in December that it would pay more than $5 billion to end a years-long U.S. investigation into the role of its mortgage securities business in the 2008 financial crisis.
Credit Suisse Moves to Block Jefferies Bid to Hire Bankers
Credit Suisse Group AG is seeking to thwart an attempt by Jefferies Group LLC to lure away a group of senior bankers. Five of eight Credit Suisse bankers who had been in talks to join Jefferies have instead agreed to stay on, according to a spokeswoman for the Swiss lender.
European Lenders Limp Into 2017 After $12.5 Billion Settlements
Relief that Deutsche Bank AG and Credit Suisse Group AG cleared legal hurdles is likely to soon give way to concern over a bigger problem: European lenders are still struggling to make money. While the combined $12.5 billion in settlements the two agreed to pay to resolve U.S. investigations into sales of toxic debt put one dispute behind them, they also highlighted how handicapped their businesses are in generating increased profits — nowhere more than in Italy, which agreed overnight to pump 20 billion euros into its banks.
CEO’s Winning Gamble May Keep Scrooge From Deutsche Bank Bonuses
Deutsche Bank AG employees may owe their cash bonuses for 2016, however modest, to a last-minute bargain by Chief Executive Officer John Cryan. The beleaguered German bank, long embroiled in negotiations with the U.S. Justice Department, was inching closer in recent weeks to a resolution over its sale of defective residential mortgage-backed securities that fueled the financial crisis.
Deutsche Bank, Credit Suisse Settle U.S. Subprime Probes
Deutsche Bank AG and Credit Suisse Group AG agreed to pay a combined $12.5 billion to resolve U.S. investigations into sales of the toxic debt that fueled the financial crisis, putting behind them a major dispute that undermined confidence in the banks and raised questions about their turnarounds. Deutsche Bank will pay $7.2 billion and take a $1.2 billion pretax charge this quarter, while Credit Suisse agreed to a $5.3 billion deal and will recognize a $2 billion hit to earnings, the banks said in separate statements early Friday.
A Sudden Burst of Activity on Mortgage Litigation
In the span of just 12 hours, three U.S. enforcement matters left over from the financial crisis made significant progress: Deutsche Bank AG and Credit Suisse Group AG separately announced that they would pay a combined $12.5 billion to resolve U.S. investigations into their sales of toxic mortgage debt, whereas Barclays Plc chose to roll the dice and let the Justice Department file a fraud lawsuit over its debt sales. Before these latest two deals, the U.S. investigations had already yielded more than $46 billion from six U.S. financial institutions.
Credit Suisse Said Planning About 900 Swiss Job Cuts Next Year
Credit Suisse Group AG is accelerating job cuts in its home market to lift profitability as it gears up for a partial sale of the Swiss division, according to two people with knowledge of the matter. The bank plans to eliminate about 900 positions in Switzerland next year, possibly enabling it to achieve — perhaps even surpass — its target a year earlier than expected, said the people, who declined to be named as they weren’t authorized to discuss the matter.
Credit Suisse Nearing U.S. Mortgage Settlement, Reuters Says
Credit Suisse Group AG may reach an agreement as soon as this week to settle a U.S. investigation into its handling of mortgage-linked securities before the 2008 financial crisis, Reuters reported. Switzerland’s second-largest bank is confident it can reach a resolution for less than the $5 billion to $7 billion that the Department of Justice has demanded, the publication quoted an unidentified person familiar with the talks as saying, without specifying when that request was made.
Credit Suisse Nearing U.S. Mortgage Settlement, Reuters Reports
Credit Suisse Group AG may reach an agreement as soon as this week to settle a U.S. investigation into its handling of mortgage-linked securities before the 2008 financial crisis, Reuters reported. Switzerland’s second-largest bank is confident it can reach a resolution for less than the $5 billion to $7 billion that the Department of Justice has demanded, the publication quoted an unidentified person familiar with the talks as saying, without specifying when that request was made.
Citi Revives Popular Leveraged Oil ETNs Credit Suisse Killed
Citigroup Inc. rolled out a couple of risky triple-leveraged exchange-traded notes tied to oil on Friday after Credit Suisse Group AG delisted two eerily similar ETNs. The notes had gained attention earlier in the year as oil prices plummeted and investors, particularly millennials, starting pouring cash into them.