Credit score Suisse sells belief enterprise, searching for break with previous

A emblem is pictured on the Credit score Suisse financial institution in Geneva, Switzerland, June 9, 2022. REUTERS/Denis Balibouse/File Picture

ZURICH, Sept 6 (Reuters) – Credit score Suisse Group (CSGN.S) is promoting its world belief enterprise, an offshore arm for rich purchasers, because it embarks on an overhaul of its enterprise following a sequence of scandals.

The sale was introduced because the Swiss financial institution defended itself towards a billion-dollar-plus damages declare involving its belief arm in Singapore.

Credit score Suisse mentioned it could promote its Singapore belief enterprise, amongst others, and wind down authorized entities and “residual companies” within the coming years.

Credit score Suisse has dubbed 2022 a “transition” yr with a change of guard, restructuring to curtail risk-taking, whereas it faces hypothesis it may very well be purchased or damaged up.

Ulrich Koerner, 59, a restructuring knowledgeable, succeeded Thomas Gottstein as CEO in August after a tumultuous two years punctuated by enormous losses, a uncommon court docket conviction for the financial institution in Switzerland and a 40% plunge in its shares.

This week, Georgia’s former prime minister Bidzina Ivanishvili alleged in a Singapore court docket motion {that a} belief unit of Credit score Suisse had did not take steps to stop him from shedding $1.27 billion.

Ivanishvili has accused Credit score Suisse Belief in Singapore of failing to safeguard his investments and “take the suitable steps” to stop losses linked to fraud dedicated by its former Geneva-based banker Patrice Lescaudron.

The belief unit mentioned the scale of his declare was “excessive”, asking the court docket to dismiss it.

Lescaudron was Credit score Suisse’s “conduit” for Ivanishvili’s enterprise and began “fraudulently mismanaging” the belief’s investments and “misappropriating” the belief funds as early as 2007, Ivanishvili’s barrister mentioned.

Lescaudron was convicted by a Swiss court docket in 2018 of forging the signatures of former purchasers, together with Ivanishvili, over an eight yr interval. Lescaudron subsequently took his personal life.

Credit score Suisse will promote the majority of its belief enterprise in Guernsey, Singapore and the Bahamas to the Financial institution of N.T. Butterfield & Son Restricted (NTB.N), whereas Gasser Accomplice Belief will take over the Liechtenstein enterprise.

Some entities will stay with Credit score Suisse for a small variety of purchasers. The financial institution declined additional remark.

Reporting by Michael Shields; writing by John O’Donnell; Enhancing by Louise Heavens, Robert Birsel

Our Requirements: The Thomson Reuters Trust Principles.