C Suisse - Investment banking loss, strikes deal with Wells Fargo

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Credit Suisse reported third-quarter profit that missed analyst estimates because of a loss in the investment bank and a bigger-than-expected drop in private banking and wealth management.

Bloomberg News reports that the investment bank posted a pretax loss of US$130.5m, contributing to a year-on-year decline in return-on-equity to 7.1% from 9.7% in the third quarter.

In the meantime, Bloomberg also reports that Wells Fargo has struck a deal with Credit Suisse to smooth the recruitment of the firm’s private-bank employees as their firm retreats from managing wealth for U.S. clients.

The deal would allow U.S. advisers and clients to move to Wells Fargo by early 2016, according to a joint statement Tuesday from the firms.

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