Credit Suisse is reportedly preparing a wide-ranging restructuring under new boss Thomas Gottstein. The Swiss bank's efforts aim at simplifying its structure as well as streamlining business units.
CEO Thomas Gottstein is heading back to the drawing board for a redo of Credit Suisse's structure, Swiss banking blog «Inside Paradeplatz» (in German) reported on Thursday. The bank chief of five months envisions a reduction of Credit Suisse units – currently five – to as little as three, the blog speculates.
Gottstein wants to present the fruits of his labor on July 30, when the bank reports its second-quarter results. A statement from Credit Suisse foments speculation: «We're constantly evaluating ways to advise our clients better and to reach our strategic targets profitably,» a spokesman said.
Reversing Regional Set-Up
He added that Credit Suisse is in «constant dialogue» with its investors, which include Harris Associates, a French-owned U.S.-based asset manager. Harris stands out as a vocal backer of ousted CEO Tidjane Thiam, though the fund house wasn't able to marshall enough support to keep him in the job.
Gottstein, who took over from Thiam mid-February, is contemplating changes within the units as well, two sources familiar with the planning told finews.com: for example, its flagship private banking unit may reduce from eight units – northern Europe, southern Europe, emerging Europe, Middle East, Africa head, Brazil, wider Latin America, and a growing affluent business. A final decision hasn't yet been taken, the people indicated.
