Credit Suisse Urged to Offload Troubled Unit
Analysts at Barclays are extolling the virtues of Credit Suisse selling off its asset management business as the rumor mill grinds and major investors pile on the pressure for returns.
A sale of Credit Suisse’s asset management arm would unlock value, U.K.-based bank Barclays said in an analysts’ report released Wednesday.
The analysts said a sale could boost Credit Suisse’s capital by one to two percentage points and add 5.2 percent to the share price. They added that proceeds could be used for a share buyback.
However, in finews.asia's view Swiss financial regulator Finma might have something to say about that, after having instructed Credit Suisse to create an extra capital cushion of almost 2 billion francs ($2.2 billion).
Casting Long Shadow
There is a great deal of speculation about the possible outcome of any potential sale. The combinations mooted include a merger with Deutsche Bank unit DWS, with UBS’ asset management, or with both, or a sale to leading European asset manager Amundi.
However, the collapse of Greensill casts a long shadow over Credit Suisse's money management unit. Several class actions have been filed in the US over Credit Suisse’s blocked Greensill funds. Potential purchasers might want to take a good look under the bonnet.
