Indeed, as I never worry when playing the OTC, found out many years ago its a total crap shoot... they play by their own rules on the OTC, all trading skills from the big board stocks are thrown out the window when buying down here. Much more fun, but way more volatile.
Credit Suisse reduced risk-weighted assets at its so-called bad bank by 7.83 billion francs during the quarter. Such assets at the bank as a whole dropped by 2.42 billion francs, helping to support the capital ratio.
“It’s not convincing that the IPO would achieve any great benefit to the capital position of the bank,” said Ray Soudah, founder of Millenium Associates, a corporate finance advisory firm in Zurich. “They’ve now realized this and the IPO is unlikely to happen. There’s no merit to doing it, especially after the recent recovery in the share price.”
The stock, hit by a selloff last year, has rebounded since July, supported by more favorable market conditions.
“There are no large Swiss banks for sale and if there were it would not make sense to buy them as it would dilute Credit Suisse’s value – and it wouldn’t be worth their time to buy small banks,” says Ray Soudah, founder and CEO of MilleniumAssociates, an M&A and corporate advisory firm based in Switzerland and the UK. Soudah suspects Thiam will break the bank into three parts – also IPO-ing the Asian business. “It makes sense,” he says. "The parts are more valuable than the sum, so you could end up with the investment banking business, which has a low value but provides services to the wealth management businesses; a Swiss business, and an international business. We will see.”
Katharina Bart?Verified account @KatharinaBart 25 Oct 2016 More Consultant Ray Soudah is on a panel at a wealth management confab. The chair just called him "the Donald Trump of private banking." Discuss.
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