Credit Suisse, UBS Would Profit From Bank Breakup: Peter Kurer
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Nov. 16 (Bloomberg) -- The two biggest Swiss banks, CreditSuisse Group AG and UBS AG, have had some bad news for investorsrecently. Both released disappointing quarterly results; CreditSuisse is entangled in a struggle with U.S. authorities over itsoffshore private-client business; and UBS had a major rogue-trading incident.
Both lenders reacted in a similar way by announcing furthercuts in costs, staff and risk-weighted assets in the fixed-income area. Both were also adamant that they would continuewith their integrated-bank model. This is the wrong approach forthem to regain trust and confidence.