Credit Suisse asks investors for billions

STORY: Credit Suisse said it would take drastic measures to recover from a heavy run of losses on Thursday (October 27).

The lender plans to raise $4 billion by selling stock.

It will also cut thousands of jobs and spin off its investment bank.

The Swiss lender has been hit by years of scandals and made a $4 billion loss in the third quarter.

That was due in large part to write-offs linked to its investment banking overhaul.

The lender called its plan a "blueprint for success".

Investors were not convinced, though, and the bank's stock dropped around 14% early Thursday.

Credit Suisse said clients pulled funds in recent weeks at a pace that saw the lender breach some regulatory requirements for liquidity.

The group added that it was stable throughout.

The turnaround plan has many elements - it will cut 2,700 jobs or 5% of its workforce by the end of this year.

The Swiss bank said it also aims to separate out its investment bank.

It will focus on advisory work like mergers and acquisitions, and arranging deals on capital markets.

Saudi National Bank said it would invest up to $1.5 billion in Credit Suisse.

The latest revamp is the third attempt in recent years by successive CEOs to turn the group around.