Bloomberg reports that the bank’s cost savings target is increased to $3.06bn from $2.04bn, Credit Suisse said today in an e-mailed statement. Net income for the second quarter rose to $805m from $785m a year earlier, the Zurich-based bank said.
'The second quarter shows that the business model is resilient under more challenging conditions', Chief Executive Officer Brady Dougan said in the statement. 'Expense reductions and capital discipline help ensure the effectiveness of the model going forward'.
'The measures we’ve announced today should remove any of the doubts raised by the Swiss National Bank’s report', Dougan told reporters on a conference call. The measures 'should completely put any capital questions to rest', the CEO said.
Finally, Reuters reports that although Goldman Sachs is not a member of the pack of banks that set the now-controversial Libor rate, but as a major participant in the swaps and money markets, it may have been hurt by the alleged price-fixing.
Asked on Tuesday during a call with analysts to what extent Goldman may have been affected and whether it might consider litigation, Chief Financial Officer David Viniar hedged his answer.
'We are not a provider of Libor', he said. 'Let's leave it at that'.