Credit Suisse

Office address: 11 Madison Ave, New York, NY 10010
Website: ubs.com/us/en/collections/credit-suisse-ip
Year established: 1856
Company type: financial services
Employees: 45,000+ (2023)
Expertise: investment banking advisory, capital markets financing, equities sales and trading, fixed income and credit products, prime brokerage and financing, global securities execution, institutional research and market insight
Parent company: UBS Group AG Key people: Sergio Ermotti (CEO), Mike Dargan (chief operations and technology officer), Damian Vogel (group CRO), Iqbal Khan and Marco Valla (presidents), Beatriz Jimenez (head non-core and legacy), Michelle Bereaux (group integration officer)
Financing status: corporate‑backed or acquired

Credit Suisse, which used to be a global systemically important bank (G-SIB), now runs as a legacy investment bank under UBS. The unit offers securities trading and prime brokerage to institutional clients. It was a Federal Reserve primary dealer before UBS bought it for $3.2 billion in 2023.

History of Credit Suisse

Alfred Escher, a Swiss politician and railway advocate, founded Credit Suisse in Zurich in 1856. The company was originally named "Schweizerische Kreditanstalt," which translates to Swiss Credit Institution in German.

Escher wanted to finance Switzerland's railway expansion without depending on French banks that sought control. The bank's early loans helped build Switzerland's electrical grid and connect the European rail systems.

Credit Suisse's early development

The company moved into retail banking in the 1900s as Switzerland's middle class expanded. The bank partnered with US investment firm First Boston in 1978 and bought a controlling stake a decade later.

From 1990 to 2000, Credit Suisse snapped up Winterthur Group, Swiss Volksbank, and Bank Leu among others. These deals turned the firm into one of the largest financial institutions in the world.

In 2008, the company held up better than most competitors when the financial crisis struck. But the bank later faced multiple tax avoidance investigations. This includes the "Suisse Secrets" scandal, which was a massive 2022 data leak exposing accounts held by criminals and corrupt officials.

Credit Suisse pleaded guilty and paid $2.6 billion in fines between 2008 and 2012. The firm still managed CHF 1.3 trillion in assets by the end of 2022.

The UBS rescue

The firm faced a liquidity crisis in early 2023, and the Swiss government had to step in. UBS agreed to buy its longtime rival for $3.2 billion in March 2023, and closed the deal that June. By late 2023, UBS reported $22 billion in wealth management inflows, with $3 billion coming from Credit Suisse's unit.

Credit Suisse AG, the Swiss parent bank, ceased to exist in May 2024, and the Swiss retail bank was deregistered two months later. It now operates as a legacy division under UBS, with its US arm still regulated by the SEC.

Credit Suisse products and services

Credit Suisse offers investment banking and wealth management through UBS's global platform:

Investment banking

• securities sales and trading: buying and selling financial instruments for clients
• prime brokerage: lending and execution services for institutional investors
• investment research: market insights and analysis for global clients
• capital raising: helping clients raise funds through debt or equity
• advisory services: guidance on mergers, acquisitions, and restructuring
• electronic trading: technology-driven trade execution across asset classes

Wealth management

• private banking: tailored financial services for high-net-worth individuals
• estate planning: strategies for wealth transfer and inheritance
• tax planning: advice on tax-efficient investment structures
• foreign exchange: currency trading and hedging solutions
• lending: credit facilities backed by investment portfolios
• managed accounts: professionally managed investment portfolios

Asset management

• investment solutions: portfolio strategies for institutions and individuals

The firm serves financial institutions, corporations, governments, and private clients worldwide. Its US operations remain regulated by the SEC under UBS ownership.

Culture and corporate values

Credit Suisse now operates under UBS and follows the combined firm's priorities since the 2023 acquisition. The legacy unit focuses on serving clients while maintaining a careful approach to risk, according to UBS:

• client-first approach: the firm states that clients remain the top priority throughout integration
• conservative risk culture: UBS says it aims to maintain careful risk management across the combined group
• global scale: the merged entity manages around $5 trillion in invested assets worldwide
• growth reinvestment: the firm plans to reinvest earnings into long-term client services and advisory capabilities
• combined offering: clients gain access to a broader range of products, services, and global reach

Credit Suisse aims to be part of a bank that clients, employees, and investors can take pride in. The unit now sits within what UBS calls the only truly global wealth manager with scale in key growth markets.

About Group CEO Sergio Ermotti and key people

Sergio P. Ermotti serves as group CEO of UBS, a role he previously held from 2011 to 2020. Before rejoining in 2023, Ermotti was chair at Swiss Re and a senior executive at UniCredit and Merrill Lynch. He attended the University of Oxford's advanced management program.

These executives lead Credit Suisse under UBS's group executive board:

• Iqbal Khan serves as co-president of global wealth management, previously leading Credit Suisse's international wealth unit
• Damian Vogel is group chief risk officer, formerly holding the same role at Credit Suisse AG
• Michelle Bereaux works as group integration officer, overseeing the consolidation of the company into UBS
• Marco Valla serves as co-president of investment bank, having started his career at Credit Suisse First Boston
• Beatriz Martin Jimenez is head of non-core and legacy, managing the acquired bank's wind-down and derisking efforts
• Mike Dargan works as group chief operations and technology officer, leading the bank's platform migrations to UBS

Swiss banking law requires UBS to maintain a dual board structure. The board of directors delegates day-to-day management to the group executive board.

The future at Credit Suisse

Credit Suisse carried unresolved legal issues from its 2014 tax evasion guilty plea into the UBS merger. The bank had admitted to helping US clients hide wealth but later failed to report all hidden accounts. UBS set aside $4 billion to address these legacy matters and keep the integration on track.

Credit Suisse also left behind an unresolved mortgage securities case from 2017. The bank had faced allegations of selling risky loans before the 2008 financial crisis under a $5 billion settlement. UBS paid $300 million to close out the remaining obligations and put another legacy issue to rest.

The latest Credit Suisse news