Credit Suisse has stumbled in its initial restructuring effort. Forced by Swiss regulators to deleverage more quickly, the bank has turned to several unenthusiastic steps in order to comply. The Swiss banking unit will see a partial public flotation not to “unlock value”, as is commonly described, but rather to satisfy systemic banking requirements in the home country. The institution also floated a smaller “capital” campaign than many, apparently, were expecting. Small wonder given that it priced well below expectations, making all these positive pronouncements about it all into hollow PR.

The planned rights issue only raised CHF4.7 billion at a per share price of 18 francs; a 30% discount to the trading price around 24.50 francs. It was also significantly less than the 22.75 francs paid by private placement investors just a few days ago. Apparently, enthusiasm is in rapidly shortening supply for the bank’s plans.

These include a switch from ROE targets, which is typical for banks doing even wholesale banking, to growth targets. New CEO Tidjane Thiam is pivoting to Asia and emerging markets, thinking there is figurative gold in doing so. But that does not include the usual appeal or the version that has dominated such banking efforts for decades now. In other words, they aren’t going to Asia looking to be a wholesale bank but rather an RIA or brokerage firm. Mr. Thiam noted in his statement that:

Emerging markets, particularly in Asia, present us with great opportunities, and we will work hard to capture the wealth management opportunity in these economies that we are confident will become the largest proportion of the world economy over time.

Wither Credit Suisse’s “dollar” profile in the transition. Small wonder, given that FICC is pounding the bank relentlessly and reminding the “markets” that Credit Suisse’s decision to avoid “dollar” restructuring in at least 2013 was a big mistake.

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