Credit Suisse to cut 1,000 jobs: report
ZURICH (Reuters) - Swiss bank Credit Suisse (CSGN.VX) will announce it is cutting another 1,000 jobs on Tuesday as it restructures its investment bank to help meet tough new capital rules, a Swiss newspaper reported on Monday.
The job cuts, on top of the 2,000 positions the bank said in July it would slash, will mainly occur in investment banking in the United States and London but will also affect wealth management, the Tages-Anzeiger daily said.
A Credit Suisse spokesman declined to comment.
The bank looks set to report a big fall in third-quarter underlying earnings on Tuesday as its investment bank suffers from the same sluggish business seen by other banks amid sovereign debt and economic woes.
Without citing its sources, the newspaper also said Credit Suisse would seek to cut its risk weighted assets by about 100 billion francs or almost a half, in particular by slashing the capital-consuming fixed income business.
Under tough new Swiss capital rules meant to shield banks from future financial crises, Credit Suisse will either have to dramatically reduce its risk weighted assets or be forced to raise new equity or retain earnings by cutting its dividend.
Chairman Urs Rohner said last month the global downturn was forcing Credit Suisse to review all its businesses, a process he said should be completed by the end of the year.
Shares in Credit Suisse were down 2.5 percent at 26.10 francs at 0941 GMT, compared with a 2.9 percent weaker European banking sector index .SX7P.
Banks are shedding jobs worldwide as stricter regulations and a tough third quarter for trading income take their toll on investment banking units in particular.
Credit Suisse said this summer it would cut about 2,000 jobs out of a total of about 50,700 as it was targeting 1 billion francs in cost savings.
Switzerland's other big bank, UBS (UBSN.VX), said in August it was slashing 3,500 jobs to shave 2 billion francs off annual costs and is expected to make more cuts at an investor day on November 17 when it announces investment bank restructuring.
In a sign of more restructuring to come, Credit Suisse is closing its commercial mortgage-backed securities loan-origination unit, but will continue its secondary trading operation, a source said earlier this month.
(Reporting by Silke Koltrowitz and Emma Thomasson; Editing by Mike Nesbit and Helen Massy-Beresford)
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