Happy New CEO (who will take over at the end of June) Day! Less happy if you work in the investment banking division, where analysts are expecting "significant" cuts.
Al Alevizakos, an analyst with Keefe, Bruyette & Woods, said an appetite for acquisitions might help Credit Suisse bolster its private banking business. Mr. Thiam’s appointment is also a sign that Credit Suisse will make more significant cuts to its relatively high-risk investment banking presence, he said. “I’d be surprised now if they didn’t put the knife into the bone,” Mr. Alevizakos said. Pressure to shrink the investment bank comes as Swiss officials are expected to implement new, tougher capital requirements to better protect the country’s broader economy.