Finance

Credit Suisse mulls creation of a single private bank

Credit Suisse is mulling creating a single private bank, which would see a change in the current regional structure and centralise the management of it into one division, according to a report from Reuters.

Citing anonymous sources, the report published on 30 June said that the Swiss bank was considering these plans as part of an overhaul following the fallout from two scandals this year.

Credit Suisse took a $5bn hit when former hedge fund manager Bill Hwang’s firm Archegos imploded in March — the biggest of any investment bank exposed to the fund. The collapse of supply chain finance firm Greensill Capital, triggered when the bank suspended $10bn in funds, has also impacted Credit Suisse.

READ Credit Suisse could seek UBS merger on the back of Archegos, Greensill scandals

Former Lloyds boss António Horta-Osório, the bank’s new chair, announced a strategic review in April.

Changing the structure of the private bank would mean overhauling the regionalised structure put in place in 2015, Reuters reported.

READ Credit Suisse chair Horta-Osorio buys $1.2m of shares amid Greensill, Archegos crises

During the bank’s annual meeting on 30 April, Horta-Osório said that the bank’s current and potential risks “need to be a matter of immediate and close scrutiny”, The Wall Street Journal reported. “A tough period and hard decisions lay ahead of us,” he also said.

Credit Suisse declined to comment.

To contact the author of this story with feedback or news, email Bérengère Sim

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