HE ghost a new Financial Crisis once again on the agenda of world banking. After the collapse of the American Silicon Valley Bank a few days ago, investor panic now focused Credit Suisseits shares depreciated by 24.94% in the stock market and drifting prices of others european banking. The Swiss National Bank had to come out and argue that the asset was sound. I promise you liquidity in case of need. Swiss entity is going through a serious process feasibility issues for years, but in a context it has returned to the center of the target growing fear on the effects on the financial sector. rate increases Central banks to fight inflation
Credit Suisse, founded in 1856 in Zurich, second largest Swiss bank After UBS, Europe’s top 20 and one world’s 50 largest. So, an existence of calls systemicwide intermediate links in the global financial system. The business last year 540.000 million euro assets (slightly less than CaixaBank to put it in perspective), 50,480 employeesand in some 40 countries. The group above all Private Banking (management of large assets), Investment Management in financial assets (such as mutual funds and pensions) and investment banking (advising and financial services for companies and institutions), as well as owning commercial bank For use in Switzerland. Inside Spainhas assets worth 10,062 million euro.
Credit Suisse, all types problem for years intensified in the last half of last year. This doubts about your model business and profitability has long doubted large investors. the quality of your assetsand therefore whether it is solvency enough to face possible hidden losses. Adds to the fact that he was subjected to this. multiple scandals, at a high cost in the form of sanctions and convictions. bank, so loss last year about 7.4 billion €He acknowledged that he had made some projections for 2023, well above the 1.674 million in 2021. “important” red numbers. He also lives in a “significant” output of customer resources For a value of about 126,000 million, it’s pretty much a sign of disbelief. Also, its second shareholderHarris Partners, sold all of his shares. Its shares fell to a record low of 1.7 Swiss francs per share this Wednesday, compared to 12.66 in January 2021 and 7.14 a year ago.
The bank has been involved in numerous scandals in recent years, in many cases a high price economic. That’s why in 2021 the authorities of the United States and the United Kingdom imposed sanctions of about 450 million euros on him. Bribery in Mozambique between 2013 and 2016. The fall of the US fund Archegos, as well as more than 1,600 million Bankruptcy of UK Greensill Capitalwhich forced him to cut the dividend. As if that wasn’t enough, he recorded a case. spying on their own rulers In 2019 (costing then CEO Tidjane Thiam), at the beginning of 2022 its chairman is Portuguese Antonio Horta-Osorio (former CEO of Santander UK and Lloyds) was forced to resign less than nine months after taking office after it was revealed that he was leaving his post. bypassed quarantine Among other things imposed by the coronavirus to attend a tennis match at Wimbledon. It was also learned that last year, the bank retained its wealth. persons accused of torture, drug trafficking, money laundering, corruption and other serious crimes, worth a total of nearly $100,000 million between 1940 and 2010. In 2022, it also agreed to pay $467 million for the lawsuit in the United States. mortgage-backed securities In addition to 238 million in France dating back to the 2008 crisis, illegal customer search and financial fraud.
The bank focused a few days ago delay your presentation annual report recognizing “material weaknesses” in the internal control and reporting of financial statements. However, the trigger for the stock market crash was the statements of Ammar al Khudairy. head of saudi state bank. Arab presence, main shareholder with Credit Suisse 9.88% of shares At the end of last year, the capital increase, which was initiated by the Swiss bank to strengthen its solvency and clear the doubts of investors, went with 1.530 million. Saudi banker in an interview with Bloomberg categorically excluded your presence gone put more money In case Credit Suisse needs to raise its capital even more. “The answer is absolutely no. for many reasons beyond the simplest reason, which is regulatory and legalReferring to the increase in legal requirements that would come with raising its participation above the 10% threshold,” he said.
your president, Axel Lehmanto come discarded Definitely going to the bank public rescue neededonly after the stock market crash willing to Swiss banking authorities to public show of support. HE Swiss National Bank and the Swiss Financial Market Supervisory Authority (FINMA) in output defense of your solvency late on Wednesday and promised to liquidatez “if necessary” is a key message aimed at reassuring investors and customers, and Stop the deposit leak that your existence has suffered in recent months. The bank last October strategic plan up to three years to try to solve their problems and persuade investors, among other measures sharp cost reduction and the weakening and possible sale of the investment banking business. if they continue big stock market salesHowever, it is difficult for him to do so. Especially since they tend to include deposit outflows, as they acknowledge receiving their deposits. Competitor to UBS and Deutsche Bank. And there is no bank that can withstand the constant and massive withdrawals of money by its customers. Therefore, it is not yet clear whether the message from the authorities will be enough to stop the bleeding.