Credit Suisse Faces $8 Billion Hole, Says Goldman Sachs

Goldman Sachs predicts that the battled Credit Suisse will need at least $8 billion until 2024, to pay for its ambitious restructuring, according to reports by Bloomberg. The investment bank Jefferies estimates the cost could be as high as $9 billion for the coming few years.

Credit Suisse has been caught up in a chain of scandals over the past years and has recorded major losses in its investment arm. In an effort to fix these issues, its new CEO is determined to sell the responsible parts of the business.

However, the restructuring is expected to require large amounts of cash. A tough economic environment and a low share price make it difficult for the international financial institution to raise capital by selling stocks.

Give us 1 week in your inbox & we will make you smarter.