According To Reports, Credit Suisse Group To Sell Its US Asset Management Arm
Credit Suisse Group AG, a global investment bank, has chosen to sell its US Asset Management arm. According to Reuters, the investment banking behemoth has begun selling its American division. Following the revelation of multiple scandals, the struggling Swiss bank has decided to reorganize its operations.
According to sources, interested buyers for one of Europe’s top investment banks’ US subsidiaries are set to submit bids by the end of this week. According to a Credit Suisse insider, the financial giant still has a chance to keep the firm if the sale does not go as planned. According to reports, the American unit would be sold through an auction, with most bidders including private equity groups.
The most recent reports emerged when Credit Suisse was involved in a series of scandals. According to Bloomberg, Credit Suisse accepted a payment of $495 million to settle a dispute over mortgage-backed securities from the 2008 financial crisis. The Swiss bank would make a one-time payment of $10 billion to New Jersey authorities to settle charges that Credit Suisse failed to provide enough information on mortgage-backed securities risks.
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Credit Suisse was also hit hard when Archegos, its investment arm, failed in 2021, resulting in a $5 billion loss. The failure of Archegos forced Credit Suisse to stop customer funds linked to the Greensill, which also failed last year.
Credit Suisse
Credit Suisse Group AG is a Swiss-based investment bank and financial services corporation. It is one of the nine global “Bulge Bracket” banks, with headquarters in Zürich and offices in all major financial centers around the world, offering investment banking, private banking, asset management, and shared services. It is known for maintaining strict client confidentiality and banking secrecy. It is regarded as a significant global banks bank by the Financial Stability Board. Credit Suisse is also the FED’s primary dealer and Forex counterparty.
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