Exclusive-Credit Suisse sounds out investors about capital hike - sources

Explainer-Credit Suisse stuck in spotlight ahead of strategy shift
Explainer-Credit Suisse stuck in spotlight ahead of strategy shift Copyright Thomson Reuters 2022
Copyright Thomson Reuters 2022
By Reuters
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By Oliver Hirt

FRANKFURT - Credit Suisse is sounding out investors for fresh cash, two people familiar with the matter said, approaching them for the fourth time in roughly seven years as it attempts a radical overhaul of its investment bank.

Credit Suisse started in recent weeks to speak to shareholders about the move, the people said. Various scenarios are under discussion for the investment bank, including the most drastic option of exiting the U.S. market, two sources said.

No decisions have been made, they added.

The sources did not say how much cash the bank would seek to raise.

A Credit Suisse spokesperson said: "We have said we will update on progress on our comprehensive strategy review when we announce our third-quarter earnings. It would be premature to comment on any potential outcomes before then."

Under restructuring launched under Chairman Axel Lehmann, and previously outlined, the bank envisions shrinking its investment bank to focus even more on its flagship wealth management franchise.

Quarterly results are due on Oct. 27.

Deutsche Bank analysts in August estimated a capital shortfall of at least 4 billion francs, corresponding to about a third of the group's market value.

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