Basel III is a matter of life or death for bank trading businesses. If they can earn enough to justify the extra capital they tie up under the new regime, then they will live. If not, they will die. Credit Suisse and UBS have had to make this call before their rivals – and the two banks have ended up in very different places.
While UBS announced a wholesale retreat from fixed income, Credit Suisse has tried to reinvent that business to make it less capital-intensive. It is a complex, ambitious