It's all happening.
'There’s no truth to this rumour', Elise Wilkinson, a spokeswoman for Wells Fargo, said in a phone interview.
Bloomberg News reports that Hedge Fund Alert reported earlier Wednesday that the CEO of the two firms had held talks about a deal that may involve Credit Suisse’s U.S. and European equities and fixed-income businesses, including its prime brokerage.
Credit Suisse CEO Tidjane Thiam, 53, has pledged to focus the bank on wealth management to tap growth across Asia with the securities divisions hurt by tougher capital rules and a drop in revenues. Credit Suisse will accelerate the implementation of its cost-cutting program, including 4,000 job cuts, citing a 'particularly challenging environment'. Thiam has, however, confirmed that investment banking is 'core' to Credit Suisse's strategy.
Credit Suisse posted the biggest quarterly loss in seven years Thursday as it wrote off goodwill and set aside provisions for litigation, while a drop in trading deepened losses in the securities unit. The shares slumped to the lowest since 1991.
'The numbers are terrible', said Dieter Hein, an analyst at AlphaValue based near Frankfurt who is reviewing his recommendation on the shares. 'The bank has started on its new strategy and is finally moving away from investment banking. In the mid- to long-term, it’s right to focus on growth in Asia, but what bad timing given the current environment'.
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