Crisis-stricken Credit Suisse is selling its trust business, which made the headlines in connection with a multi-billion dollar legal case.

The activities in Singapore, Guernsey and the Bahamas will go to the Bermuda-based financial services provider The Bank of NT Butterfield & Son, as the major Swiss bank announced on Tuesday.

The much smaller business in Liechtenstein was taken over by the local company Gasser Partner.

According to a person familiar with the situation, Credit Suisse currently employs a total of around 250 people in the trust business.

According to the announcement, the majority of Credit Suisse Trust employees are moving to Butterfield.

A small part of the business and the legal entities will remain with the Swiss for the time being, but will be wound up over time.

"Credit Suisse regularly reviews its product and service portfolio to ensure it meets the changing needs of its clients," said Credit Suisse Investment Manager Michael Strobaek.

Butterfield and Gasser Partner are specialized in this area and can serve the customers optimally.

The sales are expected to be completed in the first half of 2023.

In 2018, Butterfield took over the trust business of Deutsche Bank, three years earlier a comparable area of ​​​​British HSBC.

Trusts were originally estate planning vehicles for individuals and families.

They are used when instruments such as donations, wills or marriage contracts are too restrictive.

However, trusts are also used for tax optimisation.

Former Georgian Prime Minister Bidzina Ivanishvili had entrusted part of his wealth to a trust company operated by Credit Suisse in Singapore.

He has sued CS Trust because he says he lost $1.27 billion in connection with the fraud of an asset manager at the bank in Geneva.

A verdict is expected in early 2023.

Credit Suisse, plagued by a series of failures and billions in losses, and its new CEO Ulrich Körner again put the strategy to the test at the end of July and announced an austerity program.

The bank intends to announce further details at the end of October.

According to the insider, the sale of the trust business was initiated before Körner took office.