Credit Suisse's Business Overview

 Credit Suisse: A Global Banking and Financial Services Company

Credit Suisse is a global banking and financial services company headquartered in Zurich, Switzerland. Founded in 1856, it is one of the oldest and most prestigious banks in the world, with a long history of serving clients in Switzerland and around the globe. Credit Suisse provides a wide range of financial services, including investment banking, asset management, and private banking, to clients in more than 50 countries.

History of Credit Suisse

Credit Suisse was founded in 1856 by Alfred Escher as the Swiss Credit Institution in Zurich, Switzerland. Its primary purpose was to provide financing for the development of the Swiss railway system, which was a key driver of economic growth in the country at the time. The bank quickly established a reputation for excellence in banking and finance, and it became one of the leading financial institutions in Switzerland and Europe.

In the late 1990s and early 2000s, Credit Suisse underwent a period of rapid expansion and internationalization. The bank acquired several major financial services firms, including the US investment bank Donaldson, Lufkin & Jenrette and the Swiss private bank Clariden Leu, and it expanded its operations in Asia, the Middle East, and Latin America.

In recent years, Credit Suisse has faced a number of challenges and controversies, including a series of high-profile scandals involving tax evasion, money laundering, and corruption. In response, the bank has taken steps to improve its governance, risk management, and compliance practices, and it has committed to a strategy of simplification and focus on its core businesses.

Business Divisions of Credit Suisse

Credit Suisse operates through three main business divisions: Investment Banking, Asset Management, and Wealth Management.

Investment Banking

The Investment Banking division of Credit Suisse provides a range of services to corporate and institutional clients, including mergers and acquisitions (M&A), capital raising, and financial advisory services. The bank has a strong presence in the global capital markets, and it is a leading player in areas such as equities, fixed income, and foreign exchange.

Asset Management

The Asset Management division of Credit Suisse offers a range of investment products and services to institutional and retail clients. The bank manages assets across a range of asset classes, including equities, fixed income, and alternative investments, and it has a strong track record of delivering strong returns for its clients.

Wealth Management

The Wealth Management division of Credit Suisse provides private banking and wealth management services to high net worth individuals and families around the world. The bank has a long history of serving wealthy clients, and it offers a wide range of products and services, including investment advice, estate planning, and philanthropic services.

Recent Controversies

Credit Suisse has been involved in several controversies in recent years, which have raised questions about the bank's governance, risk management, and compliance practices.

One of the most high-profile controversies was the revelation in 2014 that the bank had facilitated tax evasion by its clients. The scandal led to a number of investigations and fines, and it damaged the bank's reputation and credibility.

In 2016, Credit Suisse was fined $5.3 billion by the US Department of Justice for its role in the sale of toxic mortgage-backed securities in the lead-up to the 2008 financial crisis. The fine was one of the largest ever levied on a bank, and it highlighted the risks associated with the bank's investment banking activities.