C Suisse thought likely to go through major overhaul

Honey I Shrunk The Banks

Aggressive downsizing ?

Philipp Hildebrand, BlackRock’s vice chairman, expects Credit Suisse to pursue an overhaul of the firm much like UBS undertook in 2012.

Bloomberg News reports that Hildebrand praised UBS Chairman Axel Weber for the reorganization that saw the bank cut thousands of jobs as it scaled back the securities unit to focus on wealth management. The firm also boosted capital.

'I assume that we will see something similar with Credit Suisse in the next few months - the whole question of business models has changed massively', Hildebrand said on a panel with Weber in Bern on Monday.

Credit Suisse hired Tidjane Thiam, Prudential’s former CEO, to replace Brady Dougan. Shareholders are betting Thiam will downsize the firm more aggressively in part to address a capital gap, which according to some analysts could be of as much as $14bn.

To access the complete Bloomberg News article hit the link below:

BlackRock’s Hildebrand Sees Credit Suisse Doing UBS-Like Revamp

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