The huge financial company Credit Suisse, as reported by Reuters this Wednesday, is considering an act of centralization of all its management branches, by restructuring its regional hierarchy. All of this is said to be done out of the need to cut down operational costs.
The report by the news outlet said that the bank executives will probably be integrating all of Credit Suisse’s money managing divisions into a single global entity. Said body will be based in Switzerland.
The bank’s regional structure was heavily advertized all the way back in 2015, and as a result, the firm had gained a huge new spike in wealthy clientele. The plans to restructure will have a direct impact on the institution’s international wealth managers. Moreover, millions of dollars will be at stake, and not to mention that the possibility of scandals is looming. The act of centralization is also raising the concern over the possibility of Credit Suisse losing a huge portion of its investors, not to mention a potential foreign take-over is also being considered as a risk.
Reports outline that the management team of the bank will take a final vote sometime in October.
Meanwhile, further reports scouted that Credit Suisse is also considering a major merger with UBS, with the two banks already communicating.