Credit Suisse was rocked by a near 30 per cent drop in its shares today, prompting the Swiss regulator to pledge support for the lender.
Credit Suisse is increasingly trailing its investment banking rivals in local mergers and acquisitions, as its global restructuring, which puts a greater focus on wealth management, takes its toll on the deals being struck in Australia.
John Knox, Credit Suisse’s co-head of investment banking and later its local chief executive, left in September 2019 after nearly 25 years with the company, and another head of investment banking, Michael Stock,Bankers who have stayed at the firm, meanwhile, remain disgruntled about their deferred bonuses, which are partially tied to the bank’s hammered share price.
Credit Suisse has worked to rebuild its dealmaking ranks, hiring former Jefferies bankers Tim Foy and Joel Chalhoub this year. Hamish Whitehead joined last June and Adam Reid came across in April.In charge, however, is Dragi Ristevski, who was appointed to the top job in 2021, one year after joining from Citi. He is tasked with resuscitating the Australian business, as the global investment bank is spun out of its Swiss parent and renamed Credit Suisse First Boston.
The bank later said it would borrow up to 50 billion Swiss francs under a covered loan from the SNB, and make a cash tender offer for up to $US2.5 billion in senior securities and up to €500 million in euro-denominated debt. A banker in New York suggested it was time to revisit the idea of a tie-up between Credit Suisse and UBS, describing the latter as the “Ferrari” of investment banking to the former’s “Oldsmobile”.
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