Credit Suisse cuts back asset management

Tim Wallace
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CREDIT SUISSE shares slumped yesterday as new plans to streamline the bank disappointed analysts and investors who had hoped for tougher cuts to fixed income operations.

The Swiss bank is part way through a SFr4bn (£2.67bn) cost-cutting plan, and is now folding its asset management arm into its private bank, as well as reasserting its commitment to fixed income and equities activity.

The rejig will see Credit Suisse’s international investment bank operations separated from those in Switzerland.

Four top members of staff saw their roles change as part of the move.

The new private banking and wealth management division will be headed by Hans-Ulrich Meister and Robert Shafir, with Shafir in charge of the Americas and Meister responsible for other geographies.

The investment banking division will be run by Eric Varvel – who will run equities and investment banking, as well as heading up Asia Pacific – and Gael de Boissard, who will head up the fixed income department and lead the Europe, Middle East and Africa (EMEA) operations.

De Boissard joins the other three on the executive board, which sits below the board of directors and is responsible for the day to day operations.

But the reshuffle saw EMEA regional head Fawzi Kyriakos and Asia Pacific boss Osama Abbasi lose their jobs.

Despite the increased clarity on how costs will be cut, the share price dropped. “We’re disappointed Credit Suisse did not follow UBS’ route and chop back their fixed income arm,” said one analyst, who declined to be named.