Just over one week before Switzerland's second-largest bank announces its new strategy, there is more speculation that it is preparing for a potential capital raise.
Credit Suisse is working with Royal Bank of Canada and Morgan Stanley on a potential capital increase to fund its upcoming overhaul, «Bloomberg» (behind paywall) reports, citing people familiar with the matter.
The bank could be aiming to raise at least $2 billion to pay for the bank's restructuring and operating losses over the next couple of years, the people said.
Such a move supports the idea that the bank plans to get rid of certain parts of the investment bank as well as its asset management business in the US, the report said.
«Project Ghana»
The capital increase is dubbed «Project Ghana» and could commence after the bank announces its new strategy on October 27, according to the sources.
Until now, analysts have estimated that the bank would need to raise up to $8 billion to cover its restructuring.
