needs to cut costs, and it may restructure its asset-management unit to do so, the Wall Street Journal reported today
Unidentified sources familiar with the Swiss bank told the WSJ
that the bank may combine its asset-management and private-banking units, eliminating duplications in back-office functions. The decision could be made as early as next month.
Credit Suisse has been shrinking its asset-management operation, which manages about $360 billion in assets and offers products including mutual funds and alternative investments to institutional clients and private investors, steady during the past year. Previously, it had earmarked part of the unit for sale. Many of the products the asset-management unit offers are already sold through Credit Suisse's private-banking division.
More 411 on the pruning? The bank has already been planning to sell two private-equity-related businesses held at the asset-management division, regarding which Credit Suisse expects to make announcements by the end of the year. Credit Suisse also reduced its investment in Aberdeen Asset Management
to less than 3 percent by the end of the second quarter from around 20 percent at the start of 2012.
Overall, the bank aims to reduce costs by 1 billion Swiss francs, or $1.07 billion, by year-end 2013.
covered Credit Suisse's sale of some of its stake in Aberdeen
and Aberdeen buying two Credit Suisse funds
in July 2011. Credit Suisse also sold some of its business to Aberdeen
in December 2008.
Keep in mind also that Credit Suisse cut nearly half of its 750 U.S. asset management jobs
Meanwhile, Credit Suisse made the list
for 14th fastest growing fund firm in January of this year, according to data from Strategic Insight Simfund MF
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