LONDON (Reuters Breakingviews) - Credit Suisse Chief Executive Thomas Gottstein is trying to contain the damage of the Greensill Capital scandal. His efforts might not be enough to reassure clients of his asset management business, which is winding down $10 billion of funds linked to the collapsed supply-chain financier. Fierce industry pressures strengthen the case for selling it to a rival like UBS. Barely a year into his tenure at the helm of the Zurich-based bank, Gottstein on Thursday said he would separate the asset management division, which oversees $477 billion, from the wider wealth-management business. Ulrich Koerner, who previously ran the equivalent division of UBS, will take charge. Outgoing boss Eric Varvel will focus on his other roles at Credit Suisse. Koerner’s immediate challenge is reassuring asset management clients spooked by risk-management issues highlighted by the Greensill episode. Though Credit Suisse has already returned $3.1 billion to investors in the four funds, the bank’s annual report on Thursday said there was still “considerable uncertainty” over how much of the remaining $7 billion they will get back. Some of the trade-finance notes sourced by Greensill will not be repaid. Meanwhile credit insurers may resist stumping up for losses. The saga strikes at the heart of Credit Suisse’s asset management growth strategy, which involved persuading clients to buy higher-margin alternative investments rather than traditional equity and bond funds. Varvel recently boasted that products like leveraged loans and the supply-chain funds accounted for 75% of the core fund management division’s revenue growth between 2016 and 2019. A key source of future growth, he explained, was winning more business through Credit Suisse’s private banking unit. Referrals from wealthy individuals and families accounted for only around 15% of assets at Credit Suisse’s funds business in September. The Greensill disaster casts doubt over both parts of that strategy. Throw in the industry-wide pressure on fees, driven by the popularity of low-cost passive funds, and the case for Credit Suisse continuing to own its asset management business is weaker than before. A combination with cross-town rival UBS could yield $284 million of annual cost savings, Deutsche Bank analysts have estimated. Appointing a heavy hitter to run the business suggests selling is not on Gottstein’s agenda. But if Koerner’s cleanup fails to deliver viable results while avoiding scandals, the question will be back on the CEO’s desk before long.