Breakingviews - Credit Suisse’s fuzzy Apollo deal better than none

to shrink the bits of investment banking that don’t help its core wealth business. But it remained silent on key financial details, including the price. The U.S. buyer, which already has about $523 billion of client money, will also manage the remaining $20 billion of Credit Suisse’s packaged loans and mortgages, in return for a fee.

But there are also good reasons for the vagueness. Some of the underlying borrowers, for example, have to consent to the change of ownership, one person familiar with the matter told Breakingviews. And it’s possible that debtors could repay early. Both of those dynamics mean the amounts are a moving target. Credit Suisse also said that the final sale price will depend on discount rates.

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Breakingviews - Breakingviews: The shafts of light in a dark, dark worldWhen John Major was Britain’s prime minister, he asked Boris Yeltsin how the Russian economy was doing “in one word”. Yeltsin, then Russia’s president, replied: “good”. Major asked him to elaborate in two words. “Not good”, Yeltsin quipped.
Source: Breakingviews - 🏆 470. / 51 Read more »

Credit Suisse sells most of its securitized products business to Apollo as it speeds up restructureCredit Suisse said it would accelerate the restructure of its investment bank by selling a significant portion of its securitized products group to Apollo. Fr Canoogan opines: this is setting off alarm bells...a dip into the 2008 archives came up with a danger signal...it was securitized products that started that whirlpool of despair, with Leaman Bro's spinning into oblivion...now maybe it's a Swiss Avalanche?
Source: CNBC - 🏆 12. / 72 Read more »