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Breakingviews: Credit Suisse cost cuts

Tuesday, July 22, 2014 - 04:10

The Swiss bank's fine for aiding U.S. tax evasion led to a $780 mln loss. Credit Suisse's tinkering has worked so far. But finding more savings will get increasingly tricky says Breakingviews

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Suite has reported its biggest quarterly loss since the peak of the financial crisis hit with -- now to discuss Dominic and it from breaking -- Dominique does the settlement. Essentially draw -- line until all of Credit -- this problem. Well it's hard to say or of that problems because the very nature of the way find developed nations development and investment banking industry lost few years is that. Just when you think they're getting everything behind them something else Paul solved yet but it's fair to say that the Credit -- achieve big things that are out that. Law it's you know US settlement. And helping. American citizens evade taxes and -- -- -- I think yes stuff around mortgages in the US now stop mortgage stuff was settled and launch. The US tax stuff was gone and malaise set in the last few months since it's clear that -- is -- the big stuff that we know about behind it. Of course there is this restructuring going on as well as its investment banking unit and I was and curious to see that the pretax profits were unchanged for that unit investors have I don't teens shared by that told his shares down 2%. Putted down to the old says the biggest quarterly loss however. Eight meeting you -- on c'mon he's training trading is as a wise me I'll. I think you think about what Chris this is dominates investment bank I have a number of years now so since the crisis. Chris is one of the finest. Trying to think -- can we need to change things fixed income. So they started just tweaking here and are the edges and declined to lots take costs out without a big fun fact that you -- yes how did you know you get sent. We're really going to got the whole operation would change it. The creditors -- is -- -- quietly doing some changes are instilled into administrative. Keeps tinkering it is the way I think content and this new idea to get out of commodities is one that. Many of its rivals have have had time to Deutsche Bank has. Gold out of commodities bought pieces exits as much of commodities business so the US banks and no need to be anybody that really is still. Funny in commodities is Goldman Sachs. It's something that dogs have done mainly because regulation makes it very hard to. Make a profit in commodities based on the -- to -- -- so I think now makes sense the big question I have is what next you know. We've got a lot of -- king we've got a lot of changes to the multiple. Kind of Credit Suisse keep cutting costs without slicing into muscle does not affect the business going forward we can -- that revenues. The rule would dial home. And it's hard to see that -- there's a lot of talk like gripe that so what happens when. The cost cutting program ends at the end of next year we're getting towards the end of that is there anymore. Not hanging fruit I doused him. And and and how much risk is that -- -- -- useful that she cuts in some muscle -- stay in the -- to fall. I think on the whole. All the changes in the fixed income business I've been necessary. And I think that you know they're reviewing. Other bits of the investment habits as well equities for example act is trading. Which is a very much destroying them that if you look at what's happened in that private bank which is crucial. That it's a crucial. Part of the business that they want to be bigger than the investment banks and profitable or at least about the -- An amendment. -- in this cool tech -- wasn't the case how do you improve things that pot is down interest rates rising to about something. That Credit Suisse called dig up much of bottles but you know the performance in this court today has been helped a lawless. By the cost cutting the question is can -- him -- race issue. Say is thank you mentioned Dominique and it from breaking -- that talking about Credit Suisse. They reported the biggest quarterly loss since the key of the financial crisis. And I seen a long and this is what's news.

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Breakingviews: Credit Suisse cost cuts

Tuesday, July 22, 2014 - 04:10