Credit Suisse buys wealth arm

City A.M. Reporter
CREDIT Suisse is buying Morgan Stanley’s wealth management arm in Europe, the Middle East and Africa, acquiring £8.6bn in assets in a move to offset exposure to more volatile investment banking.

The assets are tiny by the standards of Credit Suisse's private banking operation, the world’s fifth-largest with nearly SFr800bn (£554bn) under management.

But the deal underscores Credit Suisse’s efforts to beef up private banking, which tends to deliver a smoother revenue stream than investment banking.

Credit Suisse is also trying to slash costs at the private banking operation by 1bn francs by 2015 and has already folded the smaller asset management arm into that unit.