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We talked a bit yesterday about how Credit Suisse, a Swiss investment bank, has been going through the wringer recently. It’s dealt with high-profile scandals, a very non-favorable market for its target audience, and most recently, its stock prices jerking around because investors are skeptical about its ability to hang in there.
Well, it turns out that investors aren’t the only skeptical ones. The company’s Hong Kong branch had three private bankers resign in the past couple of weeks, and two others left only a month ago. Some of them are going to other banks, though it isn’t clear what the deal is for everyone.
What is clear, though, is that the company is in some trouble. It’s planning on unveiling some emergency restructuring plans later this month and will potentially be cutting thousands of roles to save money. It says it’s hoping to still focus on the China, Hong Kong and Singapore markets, but with talent leaving and clients being poached, it isn’t clear how tight of a hold it has.
“In spite of all these rumors flying around that Credit Suisse is pulling back or pulling out of China, China is a long-term play for us,” said Benjamin Cavalli, the head of the Asia branch of the firm’s Pacific wealth business.
“Had they started to restructure a year or two ago then they would have an easier time selling as there was more demand for risky assets,” said Andreas Venditti, an analyst at Vontobel, referring to Credit Suisse’s restructuring plan.