Before Credit Suisse's strategic overhaul last year, Deutsche Bank considered buying parts of the troubled Swiss lender had they become available.
Deutsche Bank was busy last year looking at various Credit Suisse businesses and positioning itself to pounce should those units become available for sale, according to a «Bloomberg» reporting citing unnamed sources.
Plans were developed before Credit Suisse announced a strategic review along with the appointment of new CEO Ulrich Koerner over the summer. But the plans have been put on hold since Credit Suisse announced the details of the strategic review in October.
Reactivating the Plan
According to the report, it is at least the second time Deutsche Bank CEO Christian Sewing was considering some sort of deal involving Credit Suisse. The report said that should Credit Suisse consider hiving off additional businesses, the plans could be reactivated.
Sewing also held official takeover talks with Commerzbank and informal ones with UBS which ended without result. Sewing advocates European banking consolidation and wants to act as a buyer rather than a target.
Wealth Management
One juicy target for Deutsche Bank would be the wealth management business of Credit Suisse. Asset and wealth management are areas where the German bank is looking to expand, although Credit Suisse is highly unlikely to sell off the unit as it is central to its revival strategy. Claudio de Sanctis, a former Credit Suisse executive, is the head of Wealth Management at Deutsche Bank.
In October Credit Suisse announced a framework and exclusivity agreement to transfer the majority of its securitized products group (SPG) and other related financing businesses to a consortium led by Apollo Global Management.
In addition, Credit Suisse is spinning off its capital markets business into a revived CS First Boston. To that end, earlier this month, it formally acquired the investment banking business of M. Klein & Company (MK&C), part of the Klein Group, for $175 million.
Where is the Turnaround
The announcement of the new strategic plan from Credit Suisse has not stopped the slide in its stock price. Recent events have only added fuel to the fire of Credit Suisse's troubles. The firm saw over 100 billion Swiss francs in client money leave the bank.
Chairman Axel Lehmann had indicated earlier in the fourth quarter during an interview that outflows had stopped. Those comments are now being reviewed by the Swiss Financial Market Supervisory Authority FINMA.
The slide in Credit Suisse shares leaves it with a market value of half that of Deutsche Bank.
Both Deutsche Bank and Credit Suisse declined to comment.
