Credit Suisse isn’t planning further trading cutbacks
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