Credit Suisse is racing to firm up sales of part of its business that could limit the cash it needs from investors, a person with direct knowledge of the matter said, with just days to go before the bank unveils an overhaul.
The embattled Swiss lender wants to draw a line under a string of scandals and legal actions in a shake-up that would likely see it pare back a volatile investment bank in London and New York to focus on banking for the rich in Switzerland.
The bank recently launched a process that could include selling its U.S. asset management arm, another source recently told Reuters, with initial expressions of interest due at the end of this week. However, there was no guarantee of a sale. If such deals do not materialize or fall short of expectations, Credit Suisse will go for a capital increase, said that person. The bank declined to comment, ahead of its official announcement.Credit Suisse, one of the largest banks in Europe, is trying to recover from a run of scandals, including losing more than $5 billion from the collapse of investment firm Archegos last year, when it also had to suspend client funds linked to failed financier Greensill.
The bank had earlier approached investors about a capital raise, sources familiar with the matter have said, indicating that selling assets, such as its Savoy Hotel in Zurich, may not be enough. "I am more worried that Credit Suisse will be bought at a bargain price by an American bank," he said.
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