Credit Suisse to raise $6 billion for new chief's overhaul strategy

Credit Suisse is set to raise 6 billion Swiss francs, which translates to roughly $6.3 billion as part of the strategy overhaul of its new chief Tidjane Thiam.

According to Reuters the firm also plans to decrease its investment bank and cut jobs as part of Thiam's steps to revamp the Swiss bank. Credit Suisse isn't the only firm scaling down on its investment banks.

Its rivals, Barclays, Deutsche Bank, and UBS are also doing the same thing. Tighter regulations squeezing profitability is one of the major factors to blame. Wealth management and growth in Asia are among the Swiss bank's major focus at present.

CNBC reported that the bank plans to move almost 2,000 back-office jobs out of London. This can help the bank save 230 million Swiss francs, especially considering the high costs of UK capital. The bank will cut jobs in Switzerland as well in the next three years via natural attrition.

Thiam, in an interview with The Wall Street Journal said, "There is no penalty for carrying too much capital. There's a mega discount for carrying too little. Let's try having too much [capital] for once and see how it goes."

53-year-old Thiam was hired as chief executive of Credit Suisse in July from the insurance company Prudential. He used to be an Ivory Coast government minister. He is a visionary who aims to float shares in the bank and cut 2 billion francs from the company's yearly costs. He said raising the 6 million is important to bolster their capital position.

He said the decision is welcomed by the regulators during the meeting. He said that change is needed for the Zurich-based bank, especially with the weak quarterly results. The bank's third-quarter income went down 34 percent to 861 million francs. That is after the bank suffered a 125 million franc loss from its 516 million-franc profit in 2014.