Credit Suisse faces a tough decision: either double down on its expensive debt operation or retreat from a business it has long viewed as a cornerstone in the U.S.
Bloomberg News reports that Switzerland’s finance ministry just made the choice a little more obvious after it asked the country’s biggest banks to essentially raise more capital or curtail their activities, according to Bloomberg’s Jeffrey Vogeli.
In light of the latest salvo from regulators, it’s hard to see how Credit Suisse can avoid shrinking its debt-trading and sales group.
The U.S. corporate-debt group is already contracting ahead of an October 21st announcement that is expected to shed more light on Credit Suisse’s plans to reorganize its business.
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