Credit Suisse to Raise $4 Billion to Fund Sweeping Overhaul
- Bank to get backing from Saudi National Bank in capital raise
- Credit Suisse to revive First Boston name for advisory spinoff
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Credit Suisse Group AG took the most dramatic steps yet to repair the bank, unveiling a restructuring that will see a multi-billion dollar capital raise, thousands of job cuts and carve out of the investment bank.
The firm plans to raise 4 billion francs ($4.1 billion) through a rights issue and selling shares to investors including the Saudi National Bank, it said Thursday. It’s effectively breaking up the investment bank, separating the advisory and capital markets business and selling a majority of its SPG business to Apollo Global Management Inc. and Pacific Investment Management Co.