Here are the latest Credit Suisse flaws
Credit Suisse reported a $7.9 billion loss in 2022, its largest loss since the 2008 financial crisis. Harris Associates, its largest historical shareholder, sold all shares
In 2022, Swiss investment bank Credit Suisse, the country's largest after UBS, reported its worst financial results since the global financial crisis: a loss of 7.3 billion Swiss francs (about $7.9 billion ) in 2022, against that of 8.2 billion in 2008.
THE FORECAST FOR 2023 AND 2024
Chief Executive Officer Ulrich Körner thinks Credit Suisse will return to profitability in 2024 – he expects a "significant" loss for 2023 – provided, however, that it manages to implement its ambitious restructuring plan, writes Quartz , which includes job cuts of employment and the creation of a “super boutique” investment bank under the CS First Boston brand, headquartered in New York.
HARRIS ASSOCIATES SPRING EVERYTHING
Meanwhile, the US investment company Harris Associates no longer owns any shares in Credi Suisse: this is very relevant news, because it was once the largest shareholder.
Vice President David Herro told the Financial Times that Harris Associates began reducing its exposure to Credit Suisse since last October after the bank raised 4 billion Swiss francs in a funding round that led the Saudi commercial bank Saudi National Bank to take a 9.9 percent stake.
Harris Associates owned a 10.1 percent stake in Credit Suisse last August; in January he had raised it to 5 percent.
In the last quarter of 2022, withdrawals by Credit Suisse clients amounted to an unprecedented 110.5 billion Swiss francs.
ALL CREDIT SUISSE SCANDALS
Credit Suisse's recent history is full of scandals.
In March 2021, the bankruptcy of British financial services company Greensill Capital caused Credit Suisse clients to lose more than $3 billion on their investments. The following month the bank suffered a $4.7 billion loss with the collapse of US hedge fund Archegos Capital , to which it provided brokerage services.
In February 2022, the bank was accused of failing to prevent the laundering of money related to drug trafficking by a Bulgarian criminal organization; in June the bank was found guilty by a Swiss court and ordered to pay $22 million.
Also in February, the German newspaper Süddeutsche Zeitung obtained data on more than 18,000 Credit Suisse account holders, who collectively hold more than 100 billion Swiss francs, and discovered that many of these were involved in illicit activities of various kinds (drug and of humans, for example).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/credit-suisse-perdita-2022/ on Wed, 08 Mar 2023 10:56:47 +0000.