Credit Suisse looking to scale down prime brokerage business.
Global Banking News-December 8, 2014--Credit Suisse looking to scale down prime brokerage business
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Global Banking News - 08 December 2014
Swiss banking group, Credit Suisse AG (NYSE: CS) (ZHR: CSGN) (CSGN.VX), is looking to scale down its prime brokerage business as part of previously announced efforts to reduce risk in its investment banking division, Reuters has reported, citing a person familiar with the matter.
The report comes after an expert panel recommended on Friday that the Swiss government require UBS (NYSE: UBS) (ZHR: UBSN) (UBSN.VX) and Credit Suisse be subject to a higher leverage ratio. Accordingly Switzerland is requiring its top banks to have a ratio of 4 percent or more by around 2019 - higher than the current provisionally set ratio of 3 percent imposed by international regulators.
In October, Credit Suisse said that it would scale down the rates business with the aim of lowering risky assets by USD7bn and leverage by USD60bn. 'The prime brokerage business is indeed part of the risk reduction exercise announced earlier,' the person said.
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|Publication:||Global Banking News (GBN)|
|Date:||Dec 8, 2014|
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