Credit Suisse lays off 9,000 employees and seeks billions of dollars in new investments

Credit Suisse has laid the line under a series of scandals and has unveiled an all-out plan to lay off 9,000 employees and raise billions of pounds from investors in a Saudi-led funding round as part of a company-wide overhaul to help it recover from £. 3.5 billion loss. The announcement follows months of speculation about the size of the changes planned under new president Ulrich Körner, who is tasked with scaling back the investment bank and reducing costs. 4 billion Swiss francs (3.5 billion pounds), including 1.5 billion Swiss francs from the Saudi National Bank (SNB) next month. The move puts the Saudi bank in a 9.9% stake, making it the second-largest investor behind US investment group Harris Associates. Shares of Credit Suisse fell 12% after the announcement. Switzerland’s second-largest bank says it will lay off 2,700 full-time employees, about a third of its planned cuts and a fifth of its 52,000 global workforce. There is a mix of additional layoffs and natural declines, which means that employees do not replace employees when they leave the bank. Lenders haven’t confirmed how many of their 5,500 UK employees could be affected, but “it’s a historic moment for Credit Suisse,” Körner said. “We are fundamentally restructuring our investment banking to create a new bank that is simpler, more reliable, and has a more focused business model built around the needs of our customers.” The customer is expected to spend around 2.9 billion Swiss francs next year. It will be financed by abandoning some of its investments, selling part of its business and raising new funds from investors. The National Bank of Saudi Arabia said it plans to “participate in raising funds to support the establishment of an independent investment bank with an advisory focus.” and capital market activity”. If approved, it will add another Middle East investment vehicle to the bank’s top shareholder list, including the Qatar Investment Authority and Saudi Arabia-linked private investment firm Olayan Group. Credit Suisse also confirmed this. We will continue to sculpt our investment bank to get more cash. This includes selling parts of the securitization business that buys and sells investment products backed by pools of assets such as mortgages, credit card debt and auto loans. Part of an investment bank that will also operate under the brand CS First Bosto is spun off to US investment groups Pimco and Apollo. not. Credit Suisse said the business will be “more global and broader” than most boutique firms, but will have a “more focused” approach than its large investment banking competitors, including UBS and Goldman Sachs. Sign up for Business today Set up your working day – we’ll give you all the business news and analytics you need every morning. Privacy Notice: Newsletters may contain information about charities, online advertising, and content funded by outside parties. . Please see our Privacy Policy for more details. We use Google reCaptcha to protect our website and are subject to the Google Privacy Policy and Terms of Service. Credit Suisse Chairman Axel Lehmann said that while investment banking has built up a “strong and respected” business over its 166-year history, he said, “For months, our Board of Directors and Executive Boards have been evaluating our future direction, and in the process we I believe that there is no hesitation left.” The overhaul follows a series of scandals in recent years. Credit Suisse was embroiled in the collapse of lender Greensill Capital and US hedge fund Archegos Capital in 2021. That year he also admitted to defrauding investors as part of a Mozambique “tuna bond” loan scandal, fined more than £. 350m. This year, Swiss prosecutors were convicted of helping the bank launder money on behalf of the Bulgarian Mafia. The bank has denied the crime and has said it will appeal the verdict. Credit Suisse has also raised the accusations after a covert investigation in Switzerland that revealed that it had served clients involved in torture, drug trafficking, money laundering, corruption and other serious crimes for decades. received. “The new management is focused on restoring trust by persistently and responsibly delivering our new strategy, where risk management is central to everything we do,” Körner said.
#Credit #Suisse #lays #employees #seeks #billions #dollars #investments

Leave a Comment

Your email address will not be published. Required fields are marked *