Credit Suisse Group AG will exit the hedge fund business at the heart of the Archegos Capital Management scandal and shift more resources to wealth management as it seeks to draw a line under a tumultuous year.
The bank is discontinuing most prime brokerage after the implosion of Bill Hwang’s family office cost it billions of dollars and is moving about $3 billion of capital from the investment bank to the private bank. The Swiss lender is also simplifying its structure into four divisions, including a single unit that groups together its wealth management businesses, as reported earlier this week by Bloomberg.
