Credit Suisse sells trust business, seeking break with past (updated)

Bank of NT Butterfield & Son

06/09/2022 09:24

(Adds detail, background)
    ZURICH, Sept 6 (Reuters) - Credit Suisse Group  CSGN.S  is
selling its global trust business, an offshore arm for wealthy
clients, as it embarks on an overhaul of its business following
a series of scandals.
    The sale was announced as the Swiss bank defended itself
against a billion-dollar-plus damages claim involving its trust
arm in Singapore. 
    Credit Suisse said it would sell its Singapore trust
business, among others, and wind down legal entities and
"residual businesses" in the coming years. 
    Credit Suisse has dubbed 2022 a "transition" year with a
change of guard, restructuring to curtail risk-taking, while it
faces speculation it could be bought or broken up.
    Ulrich Koerner, 59, a restructuring expert, succeeded Thomas
Gottstein as CEO in August after a tumultuous two years
punctuated by huge losses, a rare court conviction for the bank
in Switzerland and a 40% plunge in its shares.
    This week, Georgia's former prime minister Bidzina
Ivanishvili alleged in a Singapore court action that a trust
unit of Credit Suisse had failed to take steps to prevent him
from losing $1.27 billion.
    Ivanishvili has accused Credit Suisse Trust in Singapore of
failing to safeguard his investments and "take the appropriate
steps" to prevent losses linked to fraud committed by its former
Geneva-based banker Patrice Lescaudron.
    The trust unit said the size of his claim was "extreme",
asking the court to dismiss it.
    Lescaudron was Credit Suisse's "conduit" for Ivanishvili's
business and started "fraudulently mismanaging" the trust's
investments and "misappropriating" the trust funds as early as
2007, Ivanishvili's barrister said.
    Lescaudron was convicted by a Swiss court in 2018 of forging
the signatures of former clients, including Ivanishvili, over an
eight year period. Lescaudron subsequently took his own life.
    Credit Suisse will sell the bulk of its trust business in
Guernsey, Singapore and the Bahamas to the Bank of N.T.
Butterfield & Son Limited  NTB.N , while Gasser Partner Trust
will take over the Liechtenstein business.
    Some entities will remain with Credit Suisse for a small
number of clients. The bank declined further comment.

 (Reporting by Michael Shields; writing by John O'Donnell;
Editing by Louise Heavens, Robert Birsel)
 ((Michael.Shields@thomsonreuters.com; +41 41 528 3630; Reuters
Messaging: michael.shields.thomsonreuters.com@reuters.net))