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JPMorgan upgrades Credit Suisse stock

Yahoo Finance Live anchors discuss JPMorgan upgrading Credit Suisse stock from Underweight to Neutral.

Video transcript

[AUDIO LOGO]

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.

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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?

[LAUGHTER]

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.