Credit Suisse board members are in Singapore this week to rejig the strategy of the group including the fate of the investment banking arm.
Top Credit Suisse executives will meet this week in Singapore to discuss the future of the investment bank with no consensus view at play.
According to a «Bloomberg» report citing unnamed sources, the discussions will include an ad-hoc committee spearheaded by board member and ex-Citi dealmaker Michael Klein while investment banking head Christian Meissner is leading the development of the plan. Other board members on the committee include Blythe Masters, Mirko Bianchi and Richard Meddings.
Pro-IB Camp
In July, Credit Suisse signaled that it would seek to shrink its investment bank and transform the unit into a capital-light, advisory-led business more focused on trading.
While some Credit Suisse executives favor more extensive cuts, the report added, others are opposed to aggressive downsizing including Klein and Masters. One of the key points to be discussed is how much capital markets access and trading services is required from the investment bank for its offering to wealth management clients.
In addition, the board will also discuss the onshore strategy in China with local managers attempting to make the case against a retreat from the market where the bank is awaiting final regulatory approval to launch its securities unit due to the loss of over half of the unit’s personnel. Credit Suisse is also expected to review its securitized products unit to seek third-party capital though top executives are split on whether to partly retain revenue or pursue a complete sale.
