Everything is fine. We are doing great…Credit Suisse executive

Credit Suisse will not sell or spin off its investment bank but is seeking to improve its business model as tighter regulation makes the risky unit less profitable, the Swiss bank’s chairman was quoted as saying on Saturday.

“A separation or a sale of investment banking, as is sometimes demanded, would be senseless for our business and our customers,” Chairman Urs Rohner told the Neue Zuercher Zeitung newspaper in an interview.

“It’s much more about optimizing the business model and better balancing it with regard to capital allocation.”

The bank unveiled measures on Wednesday to boost its capital base in response to criticism from the central bank, and also announced new cost cuts, including at the investment bank, although some analysts have called for even more radical steps.

Source: ChicagoTribune