What happened

Shares of the embattled Swiss bank Credit Suisse Group (CS) struggled today after the bank reported its third-quarter earnings and as management announced an ambitious new restructuring plan. Shares had fallen close to 14% as of 9:37 a.m. ET on Thursday.

So what

Credit Suisse reported a loss equivalent to nearly $4.1 billion on total revenue of about $3.84 billion, largely due to the reassessment of deferred tax assets as a result of a strategy review and planned overhaul by the bank.

The bigger story was management's plans to restructure the bank and chart a new path forward, which most investors were anxiously waiting on. After multiple scandals and big losses in recent years due to heavy exposure to the collapse of Archegos Capital and Greensill Capital, Credit Suisse has seen losses pile up and vowed to overhaul its investment bank.

The new strategy will involve slicing the investment bank into multiple parts. It will exit certain businesses and significantly reduce its exposure to securitized products, have one unit for its markets business, and then put its capital markets and advisory businesses under an older brand called First Boston, which Credit Suisse acquired in 1990.

Furthermore, Credit Suisse plans to cut 15% of its expenses between now and 2025. As investors and analysts feared, to accomplish all of this, Credit Suisse will need to raise more than $4 billion of new capital.

Some of this capital will reportedly come from the Saudi National Bank, according to news reports, which will acquire as much as 9.9% of outstanding shares. The bank, which the Saudi Arabian government owns a controlling stake in, also said it might look to invest in one of Credit Suisse's investment banking units as well.

Now what

There weren't exactly a lot of good options for Credit Suisse, and raising capital is going to dilute existing shareholders while the stock trades at an extremely beaten-down valuation. Furthermore, management's 2025 return goals are not particularly attractive.

If management can execute this restructuring, the stock could have upside, given its beaten-down price. But it's a long road ahead and there's a lot of work to do. I'd wait for more evidence that management's plan is working before investing.