Credit Suisse Group to sell US asset management arm: Reports

Global investment bank Credit Suisse Group AG has decided to sell its US Asset Management Arm. Reuters reported that the investment banking giant had started the process of selling its American division. The troubled Swiss bank has made the decision to redesign its business after several scandals involving it came to light.

According to reports, interested buyers for the US arm of one of Europe’s largest investment banks are expected to place their offers by the end of this week. A source from Credit Suisse informed the media that the banking giant still had a chance to retain the business if the sale did not materialise as planned. Reports also claimed that the American unit would be sold via an auction, and the bidders would mostly include private equity firms.

The latest reports came as Credit Suisse was being marred by several scandals in recent times. As per a Bloomberg report, Credit Suisse had agreed to pay $495 million to settle a tussle over mortgage-based securities from the 2008 financial crisis era. The Swiss bank would be making the one-time payment to authorities in New Jersey to resolve claims, which accused Credit Suisse of not providing sufficient information on risks around mortgage-backed securities of $10B.




Credit Suisse also suffered a major shock after it lost over $5 billion following the collapse of Archegos, its investment arm, in 2021. The collapse of Archegos also forced Credit Suisse to suspend its client funds tied to the Greensill, which also became defunct last year.

FAQ's

1. When will the offers be presented by Credit Suisse?
   Interested buyers are expected to place their offers by the end of this week.
2. Who will be buying Credit Suisse’s US arm?
   Private equity firms are likely to be among the bidders for Credit Suisse’s US arm.