Credit Suisse Unveils ‘Radical’ Strategy as 3Q Loss Hits $4B
GENEVA—Swiss bank Credit Suisse unveiled Thursday a “radical strategy” aimed to overcome a string of recent troubles that have dented its reputation, involving cost cuts, staff reductions, steps to lower risk, and a cash infusion through a share purchase from a leading Saudi bank.
The Zurich-based bank also said it will revive the CS First Boston investment bank brand, once a stalwart of Wall Street, as it reported a 4-billion Swiss franc ($4.1 billion) loss in the third quarter.
Credit Suisse announced plans to raise some 4 billion Swiss francs ($4.1 billion) by issuing new shares to some investors, including the Saudi National Bank, which has committed to put in some 1.5 billion Swiss francs ($1.5 billion)—putting its shareholding in the Swiss bank at just under 10 percent….