The Clap
The Saudi Public Investment Fund (PIF) and Mubadala Investments, which represents the Abu Dhabi Sovereign Fund, are studying the possibility of investing in Credit Suisse.
The Deets
Saudi Arabia and the UAE are separately considering potential investments through their respective sovereign wealth funds.
The deal could come through instruments that each country owns significant stakes in, according to the people familiar with the matter.
Credit Suisse
Among Credit Suisse’s major shareholders are wealthy Middle Eastern investors, which include the Qatar Investment Authority and the Saudi Olayan Group.
The bank is now seeking to attract an outside investor, with the aim of injecting funds into part of its advisory and investment banking business.
Why this Matters
Credit Suisse stock has fallen at a larger rate than the banking index, losing about half its value this year.
The bank has less than two weeks left to reveal the details of its latest restructuring.
What Now
The funds are still only studying a potential investment and it is not yet clear if they will lead to any confirmed offers.
Sources close to the bank said potential investors in the Swiss bank are concerned about the risks of future losses or legal issues.
