Credit Suise Issues

CREDIT
SUISSE
ISSUES
WHAT IS
CREDIT SUISSE
CREDIT SUISSE FOUNDED AND
HEADQUARTERED IN SWITZERLAND, IS A
LEADING GLOBAL INVESTMENT BANK AND
PROVIDER OF FINANCIAL SERVICES. IT IS
ONE OF THE NINE GLOBAL "BULGE
BRACKET" BANKS WITH ITS HEADQUARTERS
IN ZÜRICH, OFFICES IN ALL MAJOR
FINANCIAL CENTERS WORLDWIDE, AND
OFFERS SERVICES IN INVESTMENT BANKING,
PRIVATE BANKING, ASSET MANAGEMENT,
AND SHARED SERVICES.
THE
BULGE BRACKET
THE BULGE BRACKET BANKS ARE THE
WORLD'S LARGEST MULTI-NATIONAL
INVESTMENT BANKS, SERVING MOSTLY
LARGE CORPORATIONS, INSTITUTIONAL
INVESTORS AND GOVERNMENTS.
THE CREDIT SUISSE IS ALSO ONE OF THE
NINE GLOBAL "BULGE BRACKET" BANKS.
WHY RUMOR C0MPARE
THE CREDIT SUISSE
FROM LEHMAN?
ACCORDING TO RUMORS, THE MARKET
CHAOS MAY CAUSE CREDIT SUISSE TO
FAIL BECAUSE THE BANK IS IN RISK OF
FAILING.
AS A RESULT, THEY CAN ANALYZE THE
PROBABILITY THAT SOMETHING SIMILAR
WILL OCCUR TO THE 2008 GREAT
DEPRESSION THAT RESULTED IN THE
BANKRUPTCY OF LEHMAN BROTHERS.
WHAT REALLY
HAPPENED IN
LEHMAN BROTHERS?
LEHMAN BROTHERS WAS FORCED TO
DECLARE BANKRUPTCY, THE VALUE
OF THE COMPANY'S STOCK FELL BY A
FINAL 93%. WHEN IT WAS ALL SAID
AND DONE, LEHMAN BROTHERS HAD
$619 BILLION IN DEBTS, MAKING IT
THE LARGEST CORPORATION TO FILE
FOR BANKRUPTCY IN AMERICAN
HISTORY.
https://corporatefinanceinstitute.com/resources/knowledge/finance/lehman-brothers/
THE LEHMAN
BROTHERS
LEHMAN BROTHERS IS THE LARGEST
CORPORATE FAILURE IN HISTORY, AND
IT NEARLY BROUGHT THE GLOBAL
FINANCIAL SYSTEM TO ITS KNEES,
ALARMING AUTHORITIES ON BOTH
SIDES OF THE ATLANTIC.
THE
LARGEST
CORPORATE
FAILURE
WHILE IN THE UK, LLOYDS BANK SAVED HBOS
AND THE GOVERNMENT WAS THEN
COMPELLED TO SAVE LLOYDS AND ROYAL
BANK OF SCOTLAND, THE US GOVERNMENT
WAS FORCED INTO A $700 BILLION (£540
BILLION) BAILOUT OF THE BANKING SECTOR.
WHEN THE CREDIT
SUISSE SPECULATION
STARTED?
THE SPECULATION STARTED WHEN
THE CEO ULRICH KORNER SENT A
MEMO TO EMPLOYEES AIMED AT
REASSURINNG THEM ABOUT THE
BANK'S FUTURE.
https://www.aljazeera.com/economy/2022/10/5/is-credit-suisse-the-next-lehman-brothers-probably-not
KÖRNER CAUTIONED AGAINST
CONFUSING THE “DAY-TO-DAY STOCK
PRICE” WITH THE BANK’S “STRONG
CAPITAL BASE AND LIQUIDITY POSITION”,
AND INSISTED THE UPCOMING
RESTRUCTURING WOULD ENSURE THE
LENDER’S “LONG-TERM, SUSTAINABLE .
KÖRNER ALSO TOOK AIM AT
“MANY FACTUALLY
INACCURATE
STATEMENTS”
BEING MADE IN THE MEDIA ABOUT

THE 166-YEAR-OLD FINANCIAL

INSTITUTION.
WHY CREDIT
SUISSE UNDER
INVESTIGATION?
CREDIT SUISSE HANDLED BILLIONS
OF DOLLARS IN DIRTY MONEY FOR
DECADES, AN INTERNATIONAL
MEDIA INVESTIGATION BASED ON A
MASSIVE DATA LEAK HAS CLAIMED
IN THE LATEST SETBACK FOR
SWITZERLAND’S SECOND-LARGEST
BANK.
https://www.aljazeera.com/news/2022/2/21/suisse-secrets-investigation-targets-credit-suisse-bank
ACCORDING TO AN
INVESTIGATION
RELEASED ON FEB 21, 2022 BY A COALITION
MADE UP OF DOZENS OF MEDIA OUTLETS, THE
BANK HAD MORE THAN 7 BILLION EUROS
($8BN) IN THE ACCOUNTS OF INDUSTRIALISTS,
TYRANTS, HUMAN RIGHTS VIOLATORS,
CRIMINALS, AND OTHERS WHO HAD BEEN
SANCTIONED.
WHAT IS THE
RESPONSE OF CREDIT
SUISSE FROM THE
ALLIGATIONS?
CREDIT SUISSE STRONGLY
REJECTS THE ALLEGATIONS
AND INSINUATIONS ABOUT THE
BANK’S PURPORTED BUSINESS
PRACTICES,” THE BANK SAID IN
ITS STATEMENT
THE LARGEST
LEAK EVER
THE LEAK INCLUDED INFORMATION ON MORE
THAN 18,000 BANK ACCOUNTS, MANY OF
WHICH “REMAINED OPEN WELL INTO THE
2010S”, SAID THE OCCRP.

IT SAID THE INVESTIGATION HAD FOUND

DOZENS OF “DUBIOUS CHARACTERS” IN THE
DATA, INCLUDING SOME LINKED TO
GOVERNMENT OFFICIALS.

THE REMAINING ACTIVE ACCOUNTS
THE BANK SAY, WE ARE COMFORTABLE THAT

APPROPRIATE DUE DILIGENCE, REVIEWS AND
OTHER CONTROL-RELATED STEPS WERE TAKEN IN
LINE WITH OUR CURRENT FRAMEWORK,” THE
STATEMENT ADDED. “WE WILL CONTINUE TO
ANALYZE THE MATTERS AND TAKE ADDITIONAL
STEPS IF NECESSARY.”
CREDIT SUISSE
UNDER SIEGE

LAST WEEK, PRESSURE WAS EXERTED ON CREDIT

SUISSE (SWX:CSGN) AND, TO A LESSER EXTENT,
DEUTSCHE BANK (XTRA:DBK). CREDIT DEFAULT
SWAPS ON CREDIT SUISSE BONDS INCREASED BY
AS MUCH AS 55% IN A MATTER OF DAYS, WHILE
THE SHARE PRICE DROPPED BY AS MUCH AS 20%
IN TWO DAYS.
https://simplywall.st/article/credit-suisse-is-not-looking-good
WHAT'S GOING ON
WITH CREDIT
SUISSE?

THE PRESSURE ON EUROPEAN BANKS IS

CURRENTLY WIDESPREAD, BUT CREDIT
SUISSE HAS SOME PARTICULAR ADDED
DIFFICULTIES.
EUROPEAN BANKS
HAVE A COMBINATION
OF CHALLENGES TO
DEAL WITH
GOVERNMENT BONDS ARE A BANK’S MOST
IMPORTANT ASSET. THE SELLOFF IN
GOVERNMENT BONDS, WHICH THE U.K.’S
CURRENT CRISIS HAS ALSO CONTRIBUTED TO,
MEANS BANK BALANCE SHEETS AREN’T AS
STRONG AS THEY WERE.
THE PROSPECT OF A RECESSION MEANS NON-
PERFORMING LOANS ARE BOUND TO RISE AND
OTHER SOURCES OF INCOME ARE ALSO LIKELY
TO TAKE A KNOCK.

HOW MUCH THE
CREDIT SUISSE
STOCKS GOES DOWN?
CREDIT SUISSE STOCKS MARKET
https://www.google.com/finance/
https://www.google.com/finance/
WHAT WOULD BE THE
CONSEQUENSES IF
THE CREDIT SUISSE
FALL?

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Credit Suise Issues

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CREDIT

THE 166-YEAR-OLD FINANCIAL

IT SAID THE INVESTIGATION HAD FOUND

THE BANK SAY, WE ARE COMFORTABLE THAT

LAST WEEK, PRESSURE WAS EXERTED ON CREDIT

THE PRESSURE ON EUROPEAN BANKS IS

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