Credit Suisse inks two agreements to sell its global trust business. Credit Suisse employees transferring to one of the new firms. No transaction amount was specified.
The restructuring of Credit Suisse under new CEO Ulrich Koerner took another step today as Switzerland's second-largest bank is selling its Credit Suisse Trust (CST) business to Butterfield and Gasser Partner, Credit Suisse said in an announcement Tuesday.
The unit being sold is the very same one that is front and center of an $800 million legal dispute currently underway in Singapore involving former Georgian prime minister Bidzina Ivanishvili and his family. They are asking for additional damages related to a wide-ranging fraud case related to Credit Suisse Life (Bermuda) centering around former private banker Patrice Lescaudron.
The transaction with Butterfield is expected to be completed in the first half of next year, subject to regulatory approvals. The firm will acquire CST's businesses based in Guernsey, Singapore, and the Bahamas, according to the statement.
For its part, Gasser Partner will acquire the Liechtenstein business of CST, with the transfer of the structures taking place on a rolling basis which is also expected during the first half of next year.
Once the transactions are completed, Butterfield and Gasser Partner will take over the ongoing management and administration of most of the trust structures in the respective jurisdictions.
Employees Transferring
The statement went on to say that a «significant portion» is expected to transfer to Butterfield. Recently, media reports have indicated that Credit Suisse could be cutting up to 5,000 jobs.
A Credit Suisse spokesman confirmed to finews.com that CST employs around 250 employees globally. Should these transfers materialize, that would only make up a small part of the 5,000 figure which has been bandied about, but it is a start.
Transaction Amount Not Specified
No price tag was placed on the deal in the statement, and when contacted by finews.com, a spokesman for Credit Suisse declined to comment as well.
The Players
Butterfield is an offshore bank and trust company which is located in Bermuda with independently incorporated trusts in the Bahamas, Bermuda, Cayman Islands, Guernsey, Singapore, and Switzerland.
Gasser Partner is a registered trust company and is part of the Gasser Partner law firm in Liechtenstein, advising high-net-worth individuals and institutional clients.
Strategic Review
At the release of its second-quarter results recently Credit Suisse said it was also undergoing a review of its strategy but would not provide any details until the release of its third-quarter results.
«Credit Suisse regularly reviews its product and services portfolio to meet the evolving needs of our clients. Over the past months, we have carefully considered how we can best continue to serve our clients who have sophisticated trust needs. Both Butterfield and Gasser Partner specialize in full-service trust structures and solutions dedicated to clients with bespoke needs,» said Michael Strobaek, head of investment solutions & sustainability at Credit Suisse.
Maybe today is a hint of what is to come.
