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Credit Suisse Targets To Achieve Stronger Franchise After A Global Review

Credit Suisse Targets To Achieve Stronger Franchise After A Global Review
Credit Suisse's top two executives have informed staff that the bank is working to build a stronger franchise in the long term, amid uncertainty regarding a global review of its operations, according to a memo quoted by reports in the media.
A "heightened level of media and market speculation" about the review, according to the memo from Chairman Axel Lehmann and Chief Executive Ulrich Koerner, had caused confusion among the bank's staff and customers.
As it tries to make a radical overhaul of its investment bank, Credit Suisse reportedly contacted investors about a potential capital raising.
After being named CEO in the latter part of July, Koerner commissioned the bank's operations to be reviewed for the second time in two years.
"When we launched our strategic review, we committed to an ambitious timeline whilst also making it clear that we would carry out a rigorous and diligent evaluation of all options for Credit Suisse," the note said.
"We want to establish a clear path for the bank that will strengthen our franchise for the long term. This process requires time and a significant effort from many parts of the organization."
The memo's contents were confirmed by a Credit Suisse spokesperson.
According to two sources, the investment bank is considering a number of scenarios, including the most extreme one—a complete exit from the American market. Credit Suisse is staying in the American market, according to a bank spokesman.
The memo, which was first made public by Bloomberg News earlier on Saturday, stated that the review's conclusions will be made public on Oct. 27 when the bank releases its third-quarter earnings.

Christopher J. Mitchell

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