Saturday, 26 July 2014
Last updated 21 hours ago
Mar 14 2013 | 1:20pm ET
Credit Suisse will hold on to the hedge fund stakes it currently owns but will make no further such investments as it seeks to come into compliance with new international regulators.
The bank had hoped to sell some of the hedge fund stakes owned by its Asset Management Finance unit to the Blackstone Group and Carlyle Group. But with those talks failing to produce a deal, Credit Suisse will keep AMF's hedge fund investments for now, The Wall Street Journal reports.
The bank will not add to its portfolio, however, having disbanded AMF's investment team. AMF CEO Brian Finn retired from the bank last month.
Credit Suisse bought New York-based AMF in 2008. The unit owns minority stakes in more than 20 asset managers, including Brigade Capital, FX Concepts, Lucidus Capital and MIR Investment Management.
Credit Suisse has been working to limit its risk-weighted assets, including the hedge fund stakes, with the Basel III international capital rules coming into force this year. The bank has already announced plans to raise billions to improve its capital ratio.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…