Brady Dougan and Paul Calello: Credit Suisse rebuilds its model

THE MANUAL FOR traditional investment banking would not recommend shutting down some of the few business lines in which you are a clear market leader and refocusing your efforts on other areas where profits and margins have been notoriously hard to come by.

But the past two years has not been a period in which it has necessarily been wise to follow the accepted texts.

In that period, Credit Suisse has ripped up much of its old blueprint for investment banking. It has taken tough decisions that caused its shareholders, and management, a deal of pain.

But it has re-emerged as a clear leading player in investment banking. The firm’s results for the first quarter were among the best in the industry (see best investment bank award). Credit Suisse is reaping the rewards of those...