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Credit Suisse to Exit Prime Services in Sharper Wealth Pivot

  • Bank to exit most of prime services business after Archegos
  • Will restructure wealth management businesses into single unit
Credit Suisse Group AG Headquarters Ahead of Earnings
Photographer: Thi My Lien Nguyen/Bloomberg
Updated on

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.