Credit Suisse isn’t plan­ning fur­ther trad­ing cut­backs

The Star Malaysia - StarBiz - - Foreign News -

ZURICH: Credit Suisse Group AG’s chief ex­ec­u­tive of­fi­cer Tid­jane Thiam said that the bank won’t fur­ther cut back its Global Mar­kets busi­ness af­ter the trad­ing unit posted a sur­prise loss in the third quar­ter.

There’s a crit­i­cal mass to the size of in­vest­ment bank­ing be­low which “you are not cred­i­ble, good peo­ple will sim­ply not come to work for you,” Thiam said in re­sponse to ques­tions at a con­fer­ence in Zurich.

“We made 1.5 bil­lion of prof­its in Swiss francs in wealth man­age­ment and global mar­kets has a 22 mil­lion loss,” Thiam pointed out.

“We spent the whole call global mar­kets loss,” he said.

Scal­ing down trad­ing in New York and Lon­don has been a key con­cern dur­ing Thiam’s first three years at Credit Suisse.

He wants to fo­cus on wealth man­age­ment and emerg­ing mar­kets while us­ing the in­vest­ment bank to serve the ul­tra rich. dis­cussing the

“The loss for me was a good out­come. When I ar­rived in 2015 it was 2.4 bil­lion. So I was sit­ting there pretty happy with my 21 mil­lion loss,” he said, adding that peo­ple were only ask­ing: “oh my god you had a loss in global mar­kets.”

Credit Suisse’s global mar­kets and in­vest­ment bank­ing busi­ness has the right size to serve its pri­vate bank­ing clients and can­not be fur­ther re­duced in size if it wants to stay rel­e­vant, he said. — Bloomberg

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