Credit Suisse

Credit Suisse was a Swiss multinational investment bank and financial-services group founded in Zurich in 1856 by Alfred Escher. Originally established as Schweizerische Kreditanstalt, or the Swiss Credit Institution, it was created to provide domestic financing for the development of Switzerland’s railway network rather than relying on foreign banks. Over time, the institution became a major participant in the financing of Swiss industrialization, including railway construction, electrical infrastructure, currency development and corporate expansion. The bank gradually broadened beyond corporate and infrastructure lending. During the twentieth century it developed retail banking, savings and deposit services, foreign-exchange operations, private banking, asset management and insurance-related activities. Its international investment-banking profile was built substantially through its relationship with First Boston. The partnership began in 1978, and Credit Suisse ultimately acquired control of the US investment bank in 1988, creating the Credit Suisse First Boston platform. During the 1990s and 2000s, the group expanded through acquisitions including Swiss Volksbank, Bank Leu, Winterthur Group, parts of Warburg Pincus’s asset-management business and Donaldson, Lufkin & Jenrette. Credit Suisse operated through several major businesses: wealth and private banking for affluent and institutional clients, investment banking and capital-markets services, asset management, domestic banking and related financial services. It was known internationally for its Swiss banking heritage, private-client franchise and historically strong emphasis on client confidentiality. The Financial Stability Board designated it a global systemically important bank, reflecting the potential consequences of its failure for the international financial system. Although Credit Suisse weathered the 2008 financial crisis with less direct government support than some competitors, it subsequently experienced repeated legal, regulatory, risk-management and governance problems. These included investigations concerning tax evasion and banking secrecy, sanctions-related transactions, mortgage securities, foreign-exchange conduct, failures in due diligence and controversies involving high-risk clients and counterparties. The group also undertook repeated restructurings, reductions in investment-banking activities, workforce reductions and efforts to refocus on wealth management. The bank’s crisis intensified in 2022 and early 2023 amid losses, client outflows, leadership and confidence problems, and broader market pressure following the failure of Silicon Valley Bank. On 19 March 2023, UBS agreed to acquire Credit Suisse with support from the Swiss authorities. The transaction was completed in June 2023. UBS subsequently integrated or wound down Credit Suisse operations, and Credit Suisse ceased to exist as an independent institution by 31 May 2024.

Credit Suisse began operations in Zurich on 16 July 1856 as Schweizerische Kreditanstalt. Alfred Escher established the institution to finance Swiss railway development and to reduce dependence on French financial interests. The bank adopted a relatively conservative lending model focused on short- and medium-term financing. It supported the Swiss Northeastern Railway and later helped finance the Gotthard railway, which connected Switzerland to the broader European rail network. During the nineteenth century, the institution became involved in the development of Switzerland’s industrial economy. It supported entrepreneurs, helped strengthen the country’s monetary and financial infrastructure, and participated in the financing of electricity generation and distribution through Elektrobank, later known as Elektrowatt. It also expanded internationally through affiliated banking and insurance businesses. The bank experienced losses in 1886 after speculative exposure to agriculture, commodities, international trade and industrial ventures, illustrating the risks of its increasingly broad activities. In the early twentieth century, Credit Suisse moved closer to the retail market as Switzerland’s middle class expanded. It introduced or expanded deposit, savings, currency-exchange and branch-banking services; its first branch outside Zurich opened in Basel in 1905. The bank financed corporate restructuring after the First World War and reconstruction after the Second World War. Its historical connections to assets held by Nazi-linked account holders and difficulties faced by Holocaust survivors later became the subject of historical investigations, litigation and a major settlement involving Swiss banks. The group’s international expansion accelerated in the late twentieth century. After partnering with First Boston in 1978, Credit Suisse acquired control of the US firm in 1988. The resulting Credit Suisse First Boston business became a significant force in international investment banking and the Euromarkets. Credit Suisse also bought or combined with Swiss and international institutions, including Bank Leu, Swiss Volksbank, Winterthur Group, Warburg Pincus’s asset-management business and Donaldson, Lufkin & Jenrette. In 1996, the group reorganized its principal businesses into domestic banking, private banking, asset management and Credit Suisse First Boston. The bank continued to reorganize in the 2000s, consolidating investment and financial-services activities and later adopting a “one bank” model intended to increase referrals between private banking, asset management and investment banking. It also combined several Swiss private-banking businesses into Clariden Leu. Credit Suisse survived the 2008 financial crisis with comparatively limited direct rescue support, but recorded substantial write-downs and subsequently reduced investment-banking risk and costs. From the late 2000s onward, legal and regulatory matters became a defining part of the group’s history. Investigations covered assistance to tax evasion, transactions involving sanctioned countries, mortgage securities, foreign-exchange conduct and client due diligence. The bank paid settlements in multiple jurisdictions, including a US criminal penalty after pleading guilty in 2014 to helping US taxpayers evade taxes. Other controversies involved the collapse or distress of clients and counterparties, including the Yellowstone Club and Archegos Capital Management. These events damaged confidence in risk controls and governance. Credit Suisse’s final crisis developed amid years of losses, management changes, client withdrawals, restructuring plans and questions about its financial reporting and internal controls. In March 2023, UBS agreed to acquire the bank with official support. The transaction ended Credit Suisse’s independent existence and transferred its businesses into UBS’s group structure. UBS completed the acquisition in June 2023 and continued the integration and wind-down of Credit Suisse operations through 2024.

1. 2024Independent existence ends

   Credit Suisse ceased to exist as an independent bank as UBS integration proceeded.

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2. 2023UBS acquisition announced and completed

   UBS agreed to acquire Credit Suisse in March and completed the transaction in June with Swiss official support.

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3. 2014US tax-evasion guilty plea

   Credit Suisse pleaded guilty to conspiring to assist US tax evasion and accepted a major settlement.

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4. 2008Global financial crisis

   The bank recorded major write-downs but was described as less affected than several competitors and did not require a direct government bailout.

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5. 2006Sanctions-related settlement

   Credit Suisse settled US allegations concerning transactions that concealed information about Iran and other countries.

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6. 2000Donaldson, Lufkin & Jenrette acquisition

   Credit Suisse acquired Donaldson, Lufkin & Jenrette, expanding its US investment-banking capabilities.

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7. 1996Credit Suisse Group restructuring

   The group reorganized around domestic banking, private banking, asset management and Credit Suisse First Boston.

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8. 1988Control of First Boston

   Credit Suisse acquired control of First Boston, creating the Credit Suisse First Boston platform.

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9. 1978Partnership with First Boston

   Credit Suisse partnered with First Boston to strengthen its international investment-banking presence.

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10. 1905First branch outside Zurich

    The bank opened its first branch outside Zurich in Basel as it expanded domestic retail and commercial banking.

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11. 1882Support for the Gotthard railway

    Credit Suisse helped finance the railway connection through the Gotthard route, linking Switzerland more closely with the European rail system.

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12. 1856Swiss Credit Institution begins operations

    Alfred Escher founded Schweizerische Kreditanstalt in Zurich to provide domestic financing for Swiss railway development.

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Swiss-origin global bank combining wealth management, investment banking, asset management and domestic banking, with a historically prominent private-client franchise.

• Private banking and wealth managementWealth management

  Credit Suisse served affluent individuals, families, entrepreneurs and institutional clients through advisory, portfolio-management, lending and related private-banking services. Wealth management became the group’s principal strategic emphasis after it reduced the scale of investment banking. The franchise drew on the bank’s Swiss private-banking heritage and international offices.

• Credit Suisse First BostonInvestment banking1978

  Credit Suisse First Boston was the group’s principal investment-banking platform, providing corporate finance, securities underwriting, mergers and acquisitions advice, sales and trading, and capital-markets services. It originated in the 1978 partnership with First Boston and the 1988 acquisition of control.

• Asset managementAsset management

  The asset-management business managed investments for institutional and private clients across strategies and markets. It was reorganized several times and was combined with the private-banking arm in 2012 as part of a broader effort to coordinate wealth and investment services.

• Swiss domestic bankingRetail and commercial banking1856

  Credit Suisse operated a Swiss domestic banking business offering deposits, savings products, lending, payments, foreign exchange and services for individuals and companies. The business developed from the bank’s early infrastructure and corporate-finance role and expanded into branch banking during the twentieth century.

• 2023Sell Credit Suisse to UBSM&A

  A severe confidence crisis threatened the stability of Credit Suisse and raised concerns about international financial contagion.

  What changed. UBS agreed to acquire Credit Suisse with Swiss government and central-bank support; the transaction closed in June 2023.

  Aftermath. Credit Suisse became part of UBS and was progressively integrated or wound down, ending as an independent bank in 2024.

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• 2011Reduce investment-banking exposureStrategy

  Following the global financial crisis and weaker economic conditions, Credit Suisse sought to lower costs and reduce balance-sheet and investment-banking risks.

  What changed. The group announced job cuts, reduced investment-banking ambitions and emphasized private banking and wealth management.

  Aftermath. Repeated restructurings followed, but profitability and risk-management concerns continued to affect the group.

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• 1996Create a four-division group structureStrategy

  Credit Suisse sought to coordinate its domestic, private-banking, asset-management and investment-banking activities while continuing international expansion.

  What changed. The group reorganized around Credit Suisse Volksbank, private banking, asset management and Credit Suisse First Boston.

  Aftermath. The structure was later revised through further consolidation and the adoption of a cross-divisional “one bank” model.

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• 1988Acquire control of First BostonM&A

  Credit Suisse wanted a stronger presence in US and international investment banking after its earlier partnership with First Boston.

  What changed. It acquired a controlling interest and developed the Credit Suisse First Boston platform.

  Aftermath. First Boston became a central component of Credit Suisse’s global investment-banking business.

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• 2023Collapse of confidence and UBS takeoverControversy

  Persistent governance, risk and profitability problems culminated in a loss of market confidence and the forced sale of Credit Suisse to UBS with official support.

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• 2022Suisse Secrets and client-screening scrutinyControversy

  Reporting based on leaked account information renewed criticism of the bank’s treatment of high-risk clients, secrecy practices and anti-money-laundering controls.

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• 2014Assistance with US tax evasionControversy

  Credit Suisse pleaded guilty in the United States to conspiring to help wealthy US clients evade taxes through Swiss accounts and related structures.

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• 2006Sanctions and concealed transactionsControversy

  US authorities alleged that Credit Suisse helped conceal information in transactions involving Iran and other sanctioned jurisdictions; the bank paid a settlement.

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• 1996Holocaust-era dormant accounts controversyControversy

  Historical investigations and litigation examined Swiss bank accounts connected to Nazi victims and survivors seeking access to assets. Swiss banks later reached a major settlement with claimants.

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• 2024Credit Suisse ceases to exist as an independent bank

  UBS announced that the former Credit Suisse institution had ceased to exist as an independent entity as integration progressed.

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• 2024Credit Suisse AG ceased to exist as a separate legal entity

  UBS completed the merger of the principal parent companies, and Credit Suisse AG was removed from the Zurich commercial register. Its rights and obligations transferred to UBS AG.

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• 2023Credit Suisse agrees to be acquired by UBS

  UBS announced an agreement to acquire Credit Suisse for CHF 3 billion with support from the Swiss government and Swiss National Bank, in a transaction intended to prevent the bank’s disorderly collapse.

  M&ABankruptcyRegulation
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• 2023UBS agreed to acquire Credit Suisse

  UBS agreed to buy Credit Suisse in an emergency, government-brokered all-stock transaction intended to contain risks to Swiss and international financial stability.

  M&ABankruptcy
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• 2023UBS completed the Credit Suisse acquisition

  UBS completed the acquisition, merged Credit Suisse Group AG into UBS Group AG and recorded the final trading day of Credit Suisse shares on the SIX Swiss Exchange.

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• 2012Credit Suisse promoted the Titian 2012 cultural sponsorship

  A short film created with Euro RSCG supported the bank’s sponsorship of the National Gallery’s Metamorphosis: Titian 2012 exhibition in London.

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• 2011Credit Suisse restructuring and investment-bank reductions

  The group announced job reductions and further cost-cutting as it reduced the scale of its investment-banking activities and emphasized private banking and wealth management.

  Leadership change
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• 2011Credit Suisse launched a new global advertising campaign

  The bank introduced a multimedia campaign across selected European, Asian and United States markets. Advertisements featured current clients and presented Credit Suisse as a trusted partner helping clients pursue financial ambitions.

  Campaign
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• 2011Credit Suisse consolidated its global banking identity

  The group brought its investment-banking, private-banking and asset-management activities under the Credit Suisse name as part of a unified-brand strategy, replacing earlier divisional branding with a global visual identity.

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1. Credit Suisse
2. Credit Suisse official website
3. Emergency rescue and collapse of investor confidence
4. Credit Suisse AG ceased to exist as a separate legal entity
5. UBS completed the Credit Suisse acquisition
6. Credit Suisse promoted the Titian 2012 cultural sponsorship
7. Credit Suisse launched a new global advertising campaign
8. Credit Suisse consolidated its global banking identity