What is the fate of US mortgage rates amid this chaos?

Credit Suisse has been plagued by problems for years. In fact, it faced rumors of a potential collapse as recently as late last year.

In October, social media talk that the Swiss bank was on the verge of bankruptcy sent shares on a wild ride.

It also appeared to cost the firm dearly: Clients withdrew 111 billion Swiss francs ($121 billion) in the final three months of 2022 amid speculation.

Credit Suisse has since embarked on a massive turnaround plan that will see it cut 9,000 full-time jobs by the end of 2025. The firm will also spin off its investment bank and focus more on wealth management.

But last month the Zurich-based lender reported its biggest annual loss since the 2008 financial crisis, underscoring the scale of the challenge it continues to face.

It lost 7.3 billion Swiss francs ($7.9 billion) in 2022, compared with a loss of 8.2 billion Swiss francs ($8.9 billion) in 2008.

The dismal results followed a series of missteps and compliance failures that have already cost the bank dearly.

For example, the collapse of American hedge fund Archegos Capital Management, a client of Credit Suisse, cost the bank $5.5 billion in 2021. An independent external investigation later found “a failure to manage risk effectively.”

Last year, the bank’s chairman also resigned following an investigation commissioned by the board that reportedly looked into allegations that he broke Covid-19 rules. The investigation was reportedly to focus on conduct, including travel and his personal use of company aircraft.

The bank’s reputation has also been tarnished by a spying scandal in recent years, which ultimately led to the resignation of its former CEO and COO.

New deal: Credit Suisse said on Wednesday it would borrow up to 50 billion Swiss francs ($53.7 billion) from the Swiss National Bank as it seeks to reassure investors it has the cash it needs to stay afloat. Investors sent shares of the nation’s second-largest lender down as much as 30% on Wednesday.

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