Credit Suisse aims for stronger franchise from global review

The logo of Swiss bank Credit Suisse is seen in an office building in Zurich, Switzerland, September 2, 2022. REUTERS/Arnd Wiegmann

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HONG KONG, Sept 24 (Reuters) – The two top executives at Credit Suisse (CSGN.S) told staff the bank was working to build a stronger franchise for the longer term, according to a memo seen by Reuters on Saturday , in a context of uncertainty overall review of its operations.

The memo sent by chairman Axel Lehmann and chief executive Ulrich Koerner said an “increased level of media and market speculation” about the review had raised questions among bank staff and customers.

Reuters reported on Thursday that Credit Suisse has been polling investors on a possible fundraising as it attempts a sweeping overhaul of its investment bank.

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Koerner was named chief executive in late July and ordered a review of the bank’s operations, the second of its kind in two years.

“When we launched our strategic review, we committed to an ambitious timeline while making it clear that we would conduct a rigorous and diligent evaluation of all options for Credit Suisse,” the note said.

“We want to establish a clear path for the bank that will strengthen our long-term franchise. This process takes time and significant effort from many parts of the organization.”

A Credit Suisse spokesperson confirmed the contents of the note.

Various scenarios are being discussed for the investment bank, including the most drastic option of largely exiting the US market, two sources said. A spokesperson for the bank said “Credit Suisse is not leaving the US market.”

The findings of the review will be released Oct. 27 when the bank releases its third-quarter results, said the memo, first published by Bloomberg News earlier on Saturday.

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Reporting by Scott Murdoch; Editing by David Holmes

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scott murdoch

Thomson Reuters

Scott Murdoch has been a journalist for over two decades and works for Thomson Reuters and News Corp in Australia. He has specialized in financial journalism for most of his career and covers equity and debt markets across Asia from Hong Kong.

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