Credit Suisse is set to close its ‘managed lending’ business in the U.S., a service which provides third-party agency securities lending to large institutional investors.
The Swiss bank plans to wind down the business by the end of June, after deciding the niche focus of the managed lending division does not conform to the bank’s wider strategy.
The third-party agency securities lending business, which operates out of New York, works on behalf of large institutional investors in the U.S., matching their securities with broker-dealers for a fee.
According to a Credit Suisse spokesperson, the closure of the business will not affect its prime brokerage securities lending services, which directly serves hedge funds.
“Credit Suisse is constantly assessing how to best create efficiencies for our franchise and our clients. We remain committed to continuing to provide our clients with a top tier offering,” says the spokesperson.
The closure of the business comes as Credit Suisse continues to review its investment banking strategy.
Last July it decided to close its commodities trading business, and in December, it began a re-evaluation process of its prime services division as it looks cut costs in the face of Basel III capital requirements.
Credit Suisse To Close U.S. Managed Lending Division
Credit Suisse is set to close its ‘managed lending’ business in the U.S., a service which provides third-party agency securities lending to large institutional investors.