Credit Suisse’s decision to raise new capital makes sense. Sticking to its current strategy doesn’t.

The crisis-struck bank said on 22 April it would issue mandatory convertible notes that were expected to raise CHF1.7bn, equivalent to about $1.85bn. Management stressed it was a proactive move to end speculation about its capital levels. The issue will dilute shareholders’ equity by about 8%, but is probably necessary to reassure wealth-management clients that the bank is solid.