Credit Suisse plans to change its legal structure to improve the firm’s resolution in a crisis.
Bloomberg reports that the plan, which would create separate units in Switzerland, the U.K. and the U.S. to more closely align the booking of investment-banking business to regions where it originates, will start to be implemented in mid-2015, Zurich-based Credit Suisse said in a statement Thursday. The program needs the approval of the Swiss regulator.
Under Swiss too-big-to-fail regulations, UBS, and Credit Suisse can lower their capital requirements if they shrink or make sure the company can continue to provide functions that are systemically important for Switzerland even in a crisis. UBS said earlier this month it plans to set up a Swiss banking unit as regulation may demand changes to the legal structure.
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