Business generated substantial profits for Swiss bank but was capital-intensive
Credit Suisse confirmed on Tuesday that it was selling much of its securitised products group to private equity group Apollo, as the Swiss bank slashes a business that generated substantial profits but ate up large amounts of capital.
Credit Suisse last month announced a radical restructuring plan — including carving up and spinning off its investment bank, cutting thousands of jobs and raising $4bn in capital — to help it move on from a litany of scandals and a SFr4bn ($4.2bn) third-quarter loss.
Credit Suisse on Tuesday said Apollo had agreed to acquire a “significant part” of the assets of its securitised products business, reducing its holdings of such assets from $75bn to $20bn.
Read more: FT
