The board of Credit Suisse is considering splitting up its investment bank into three.
Among proposals put forward by its leadership are the resurrection of a “bad bank” for risky assets.
Reported first by the Financial Times, under proposals the bank would look to sell profitable units in a bid to offset damaging capital raise.
Proposals would split the investment bank its an advisory businesses, a ‘bad bank’ to hold high-risk assets and the remainder of the firm.
In a statement to the FT, Credit Suisse said: “We have said we will update on progress on our comprehensive strategy review when we announce our third-quarter earnings”
“It would be premature to comment on any potential outcomes before then.”
The bank has been mired in scandals over the last three years, including a corporate spying row in.
It was also hit by a series of downgrades from credit analysts, raising its borrowing costs. It is also planning to cut thousands of jobs which could impact 10 per cent of its global workforce.