Credit Suisse is trying to raise more than $1 billion after a string of scandals and executive departures
Credit Suisseis raising more than $1 billion in capital, Reuters reported.
- The bank has suffered a string of scandals and high executive turnover during the past few years.
Credit Suisse is seeking to raise more than $1 billion after a year of heavy financial losses, according to a report from Reuters.
The embattled bank, the second largest in Switzerland, is looking at several options, Reuters said, citing two people with knowledge of the matter. The firm would rather sell shares to existing major shareholders, but it hasn't ruled out selling an entire business like its asset management division.
Credit Suisse plans on completing this deal in the second half of 2022, Reuters reported.
Credit Suisse told Reuters in a statement that it's is "not currently considering raising additional equity capital" and that it's "robustly capitalized." The bank also said its asset management division is "an essential part of our group strategy."
Credit Suisse wasn't immediately available for comment on Monday afternoon.
News of this capital raise comes a year after Credit Suisse reportedly raised $2 billion. And it comes at a critical time for the firm as it tries to shore up losses from 2021, which included $600 million in damages from a Bermuda court case.
Credit Suisse is also trying to move past the Archegos scandal, in which a hedge fund collapsed and resulted in a $5.5 billion loss for Credit Suisse in the spring of 2021.
Since then, Credit Suisse has suffered an exodus of talent, with almost 90 senior employees leaving the bank last year. Attrition also bled down into the mid- and junior ranks too, with nine directors focused on healthcare deals exiting the firm in the summer of 2021.
More recently, Credit Suisse ousted chairman António Horta-Osório in January 2022. He had served in that role for less than a year.
Credit Suisse continues to have legal troubles, too. Earlier this month, a law firm filed a class-action suit against the bank, claiming Credit Suisse misled investors over its ties with Russian oligarchs. And Congress has launched an investigation into whether the bank asked investors to destroy documents related to the finances of Russian oligarchs.
The firm, however, has also been trying to rebuild its business post-Archegos. For instance, it's rehired more than a dozen bankers for its investment banking unit.
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