(Updates with private banking closure in 6th paragraph.)
Nov. 17 (Bloomberg) -- Credit Suisse Group AG is closing its fixed-income operations in Taiwan, eliminating about 20 jobs, according to two people with knowledge of the matter.
Credit Suisse AG Taipei Bank Branch, which handled fixed- income, foreign exchange and money market business, will be shuttered, said the people, who declined to be identified because the move is private. Credit Suisse will keep equity research, sales trading and corporate advisory services in Taiwan, the people said.
Switzerland’s second-largest bank said this month it plans to reduce risk-weighted assets at its fixed-income unit to improve returns at the investment bank. Credit Suisse also plans to cut about 1,500 more jobs and reorganize its securities unit after the division reported its first quarterly loss since 2008.
Financial-industry job losses worldwide are approaching 200,000 this year as Credit Suisse and competitors like Citigroup Inc. race to reduce costs while trying to cope with shrinking revenue and demands from regulators that they hold more capital.
Credit Suisse exiting the business of commercial mortgage- backed securities origination and will scale down long-dated unsecured trades in global rates, emerging markets and commodities businesses. It will also shrink its advisory businesses to reduce overlaps in covering certain countries, industries and products, Credit Suisse said Nov. 1.
The bank’s Taiwan branch got approval from local regulators in 2008 to conduct fixed-income and foreign exchange business there. The company aborted a plan to start onshore private-banking operations at the branch, one of the people said.
Adam Harper, a Hong Kong-based spokesman for Credit Suisse, declined to comment on the closure.
Credit Suisse, which previously aimed to reduce risk- weighted assets by as much as 70 billion francs ($76 billion) to prepare for Basel III, said on Nov. 1 that it will cut them at the fixed-income unit by 99 billion francs by the end of 2014. That will improve the return on equity at the bank, which would have slumped by 9 percentage points without any measures.
--Editors: Philip Lagerkranser, Nathaniel Espino
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