Credit Suisse is quitting prime services and cutting the capital allocated to its investment bank by $3bn under a strategy shift unveiled by chairman António Horta-Osório after a series of scandals at the bank.

The Swiss bank said that it was largely exiting prime broking, the service line offered to hedge funds that was at the heart of its $5.5bn loss from the collapse of Bill Hwang's family office, Archegos Capital.