Urs Rohner / Chairman /: "Credit Suisse will not be 'shrunk' anymore"




Credit Suisse's investment banking operations has been sufficiently reduced, said Chairman Urs Rohner, highlighting the Swiss bank's commitment to business.

Asked by Schweiz am Wochenende, whether the investment bank has tied up too much capital, Rohner said, "No, we see 60 billion Swiss francs in risk-weighted assets as a reasonable amount for our trading operations, you can hardly manage this business with less ."

US investment banks crush European business, and this alone gives a good answer to the question of what volumes bankers are trading on. A further contraction in the investment activity of major European banks coupled with the regulations could make the gap with the US too big, which would hurt the banking sector of the Old Continent.

Like its larger rival UBS, Credit Suisse has shrunk its investment banking to focus on managing funds, reducing the financial impact of volatile markets.

Rohner, who said Credit Suisse's consulting business had made him the only European bank to match US competitors, also speculated that the low cost of the bank's shares could turn it into a takeover target. The company's shares fell by more than a third last year, but this year rose by 7.7%.

"Banks operate in a highly regulated environment, and hostile takeovers are almost excluded these days," he said.

Asked whether the bank might have foreigners as president and CEO, the Swiss manager said, "In theory, yes, practically hardly."

"Our name is Credit Suisse, here we have 1.5 million customers, so it makes sense that one of the two largest positions is held by someone who speaks our language and knows the country and her culture. In particular, the Chairman must have good contacts in Swiss politics. "

"It is very important for us to have a strong leader who has shaped and implemented our restructuring," he said.

Rohner added that almost everyone wants an end to the negative interest rates in Switzerland, but it is not good to mumble about them. "From today's perspective, we have to assume that for a while we will have very, very low levels."

Source: Reuters

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