Reputation Risk Drives Credit Suisse Strategy

Reputation Risk Drives Credit Suisse Strategy by John Heilprin, swissinfo.ch

Switzerland’s second-biggest bank is getting back to what it has done best in a bid to restore investor confidence by reshaping its business and boosting profitability. In a word, it’s about credibility.

Faced with plunging core profits, Credit Suisse is embarking on a major overhaul to transform one of the world’s largest investment banks into a leading private bank and wealth manager.

To accomplish that, the bank said on Wednesday that it would raise more than CHF6 billion ($6.3 billion) in capital by selling stock and cutting CHF3.5 billion in costs, including 1,600 Swiss jobs, by the end of 2018. It also plans to expand operations in Asia and...