Yahoo Finance Live anchors discuss JPMorgan upgrading Credit Suisse stock from Underweight to Neutral.
JULIE HYMAN: Let's talk about-- and speaking of shares that have been going down-- Credit Suisse. JPMorgan upgrading the stock from underweight to neutral, citing a positive impact from the lender's reported restructuring plan. You can see the shares are bouncing a little bit today. They're up just about 1%, in US trading that is. Of course, they also trade in their native Switzerland.
And JPMorgan, it's a pretty wonky note here. But basically they're outlining two scenarios. In the first scenario, a dramatic restructuring of the bank with a 70% shrink in its investment banking operations, an exit from fixed income commodities and currency trading and equities trading. So that would indeed be a big change. In that scenario, their tier one capital ratio would actually stay the same, according to JPMorgan.
In the second scenario, they say they assume yet another halfhearted investment bank restructuring. And they seem to be a little bit less--
BRAD SMITH: 58-page note.
JULIE HYMAN: --positive on that particular scenario. So still some scenarios for Credit Suisse to sort of pull through this without needing to raise additional capital, I guess, is kind of the bottom line here by selling shares.
BRAD SMITH: This was a good bedtime read.
BRIAN SOZZI: [LAUGHS] Oh.
BRAD SMITH: 58 pages.
BRIAN SOZZI: Hey, the Nike guy died, right? There Just Do It guy?
BRAD SMITH: All right, before--
JULIE HYMAN: We're just giving people information.
BRIAN SOZZI: OK.
BRAD SMITH: Well, you know what? Here's the thing, Nike is then great. Pinterest, maybe they'll do better. And Credit Suisse, we'll see what they do.