Credit Suisse Group AG denied it’s exiting the US market following a Reuters report that the Swiss bank was mulling such a withdrawal for its investment bank.
“Credit Suisse is not exiting the US market. Any reporting that suggests otherwise is categorically false and completely unfounded,” a representative for the bank said in a statement.
Credit Suisse is also sounding out investors for a possible capital raise, according to the report from the newswire on Thursday. The bank started in recent weeks to speak to investors about the move, Reuters said, citing two people familiar with the plans it didn’t name.
The bank is in the midst of electing which businesses to cut, exit or keep as part of its second restructuring in less than a year. New Chief Executive Officer Ulrich Koerner and Chairman Axel Lehmann are seeking to shore up confidence in the lender and return it to profitability after a string of losses and missteps.
Credit Suisse shares fell 5.5% in Zurich trading Thursday and are down 47% this year.
A bank spokesman earlier reiterated the firm’s statement that it will update investors on the strategy review when it reports third-quarter earnings next month. “It would be premature to comment on any potential outcomes before then.”
Credit Suisse’s top executives and board members are weighing several options as they look to stem a stock rout that has taken the share price to the lowest on record. The firm has been talking to potential buyers for its securitized products group, a trading business with $75 billion in assets by one measure, and has floated the idea of giving dealmakers an equity stake in their unit, auguring a possible spinout, Bloomberg has reported.
Analysts at Deutsche Bank AG said last month that Credit Suisse faces a capital gap of at least 4 billion Swiss francs ($4.1 billion) to improve its financial strength, fund its restructuring and support growth. The Swiss bank’s leaders have said they’re comfortable with the firm’s capital position.
This article was provided by Bloomberg News.