| 28 February 2024, Wednesday |

Credit Suisse looks for capital from Mideast, top banker to leave

According to a source, Credit Suisse Group AG has approached at least one Middle Eastern sovereign wealth fund about a capital infusion, and other funds are looking at the scandal-plagued Swiss bank’s operations as prospective investment prospects.

According to Bloomberg, Abu Dhabi and Saudi Arabia were debating whether to invest in Credit Suisse’s investment bank and other companies through their sovereign wealth funds. It said that an investment will be made to take advantage of low values.

Credit Suisse’s investment banking chief, Christian Meissner, will be leaving the bank once it has announced a strategic overhaul on Oct. 27, a source familiar with the situation said.

The size and other details of a potential capital injection could not be learned.

A spokesperson for Credit Suisse declined to comment, reiterating that it will update on its strategy review when it announces third-quarter earnings.

The largest Middle Eastern sovereign fund investor in Credit Suisse, the Qatar Investment Authority, declined to comment. Mubadala declined to comment. ADIA and PIF did not immediately respond to requests for comment.

Credit Suisse’s U.S.-listed depository receipts closed 3.6% higher on Monday.

Credit Suisse, one of the largest banks in Europe, is trying to recover from a string of scandals, including losing more than $5 billion from the collapse of investment firm Archegos last year, when it also had to suspend client funds linked to failed financier Greensill.

  • Reuters