Credit Suisse

Credit Suisse Group AG's new chief has asked investors for less than 100 days to deliver a new turnaround strategy. Turbulent markets are making that feel ...

In your inbox before the open, every day. Want the lowdown on European markets? Turbulent markets are making that feel like a long time.

As Europe faces a dark winter and a war on the continent, Credit Suisse Group AG is facing stress in the credit default swap markets.

However, Credit Suisse Group AG qualifies as a global systemically important bank (G-SIB) and is required to disclose these G-SIB indicators on an annual basis. On Friday (September 30, 2022), Credit Suisse Chief Executive Officer Ulrich Koerner tried to calm down staff that the bank has a “strong capital base and liquidity position” and told employees that he will be sending them a regular update until the firm announces a new strategic plan on October 27, 2022. That said, I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank,” he wrote.

Mr Ulrich Koerner reassured staff that the bank has a "strong capital base and liquidity position". Read more at straitstimes.com.

The KBW analysts were the latest to draw comparisons to the crisis of confidence that shook Deutsche Bank six years ago. While these levels are still far from distressed and are part of a broad market sell-off, they signify deteriorating perceptions of creditworthiness for the scandal-hit bank in the current environment. Deutsche Bank saw its credit-default swaps climb, its debt rating downgraded and some clients step back from working with it. The firm's 2021 annual report said its international regulatory minimum ratio was 8 per cent, while Swiss authorities required a higher level of about 10 per cent. Credit Suisse's market capitalisation dropped to around 10 billion Swiss francs, meaning any share sale would be highly dilutive to long-time holders. Mr Koerner's memo was the second straight Friday missive as speculation over the beleaguered bank's future increases.

The Swiss banking giant is embroiled in a succession of financial scandals that now threaten its future.

At the beginning of 2021, Credit Suisse asked Archegos to deposit funds. But in March 2021, ViacomCBS shares crashed and the banks asked Archegos to cover the losses, which it was no longer able to do. Founded in 2011, the British company is a The second scandal in the spring of 2021 involved family office Archegos Capital Management. It then packages the debts of these companies into financial securities which it resells to investors. "We are in the process of reshaping Credit Suisse for a long-term, sustainable future - with significant potential for value creation," Körner added. A negative outcome is likely to cause a shock similar to that caused by the bankruptcy of the U.S. It is a real nightmare for the bank which had succeeded in weathering the financial crisis without losing too many feathers. The bank has not yet renewed the contracts of certain contractors. But the establishment is known globally for its investment banking activities - trading, deals such as mergers and acquisitions, bonds, securities, etc - and wealth management operations. This event triggered one of the most serious financial and economic crises since the Great Depression. 2 Swiss bank and one of the largest banks in the world is in deep trouble and is currently fighting for its survival.

Senior Credit Suisse executives spent the weekend reassuring large clients, counterparties and investors about the Swiss bank's liquidity and capital ...

Credit Suisse is in the throes of what is expected to be a major restructuring of the investment bank as Koerner seeks to return the lender to profitability ...

While conceding that there is a lot of uncertainty and speculation both within and outside the bank, the CEO said he will be sending a regular update to staff until the results of its strategic review on Oct. 27, according to the memo, seen by Bloomberg and confirmed by a Credit Suisse spokesperson.Koerner asked staff to remain disciplined and close to clients despite all the media attention the bank is receiving. Credit Suisse is in the throes of what is expected to be a major restructuring of the investment bank as Koerner seeks to return the lender to profitability and put an end to a string of scandals.

The chief of beleaguered lender Credit Suisse has stepped into to soothe staff concerns over the financial stability of the bank, as it prepares to public a ...

Credit Suisse was reportedly sounding out investors for fresh cash last week as it attempts a radical overhaul of its investment bank. It has since been hit by losses this year amid a slowdown in its investment banking unit as capital markets activity remains subdued. investment firm Archegos Capital led to a $5.5bn hit, and $10bn of supply chain finance funds (SCFF) linked to collapsed British financier Greensill were shuttered.

Junior bankers and traders who are either already at Credit Suisse or who hold offers to join Credit Suisse next year can come out of their safe spaces.

The "scaremongering" around Credit Suisse is "gross", says Weinstein in another tweet. At the very least, this weekend's events are likely to make the bank more mindful of capital conservation and less inclined to sustain a large and capital- hungry investment bank. [[email protected]](mailto:[email protected]) in the first instance. "It's BS," says one of the weekend panic. Credit Suisse may not be a good business, but that doesn't mean it's also very risky, he adds. Credit Suisse may be the "worst big bank in Europe" but it's not about to go under, said one. [Financial Times ](https://www.ft.com/content/c62bea1f-2929-4473-838d-665dc6c45f83)says Credit Suisse has spent the weekend reassuring investors that all is fine. "Credit Suisse has been de-risking and now has one of the safest balance sheets in the market. Is General Motors also on the bring of failing? Fortunately, Credit Suisse itself isn't the only one offering reassurance. Where did the rumour of Credit Suisse's imminent demise come from? So say some of the most knowledgeable figures in the industry, many of whom actually did witness several banks going under in 2008.

It's been more than a decade since the financial crisis in 2007-2008 when Lehman Brothers, the fourth largest investment bank in the U.S., collapsed and ...

“Because anyone who fully trusts their accounting also believes in unicorns and the tooth fairy.” At the time of writing, the term “Credit Suisse” is a very [popular vertical trend](https://twitter.com/search?q=%22Credit%20Suisse%22&src=trend_click&vertical=trends) on Twitter on Sunday morning (ET) with 46,000 tweets. Some have criticized the banks’ auditing process as they believe Credit Suisse and Deutsche Bank are [Bitcoin.com](https://bitcoin.com) does not provide investment, tax, legal, or accounting advice. “Credit Suisse is probably going bankrupt,” the Twitter account ‘Wall Street Silver’ Disclaimer: This article is for informational purposes only. Furthermore, Credit Suisse’s credit default insurance (CDS) levels resemble the same CDS levels Lehman Brothers had just before the bank’s bankruptcy. The author adds It’s been more than a decade since the financial crisis in 2007-2008 when Lehman Brothers, the fourth largest investment bank in the U.S., collapsed and filed bankruptcy. “From $14.90 in Feb 2021, to $3.90 currently. In my little experience- A black swan event never announces itself.” [analysis](https://seekingalpha.com/article/4544195-credit-suisse-deutsche-bank-at-distressed-valuations-which-to-avoid) of the situation published on Seeking Alpha also notes that both Credit Suisse and Deutsche Bank are trading at distressed valuations and further says that Credit Suisse “will have to go through a painful restructure.” The Seeking Alpha author writes that “[Credit Suisse] is trading at 0.23x tangible book [and] Deutsche Bank is trading at 0.3x tangible book value.” However, the Seeking Alpha author says that Deutsche Bank is working through the storm via benefits from interest rates. “In Every correction – this speculation starts coming.

Both CS and DB are trading at distressed valuation. CS will have to go through a painful restructure. Read more here.

In the interim, I expect the bleeding to continue, including the departure of key staff to competitors. The investment bank is focused on the bread and butter of trading income comprising FX, rates, and credit trading. Negative rates settings completely disrupt the maturity transformation business model of deposit-taking institutions and are a key reason for the decade-long underperformance of European banks compared to their U.S. I expect there will be a capital call soon - there is no real way of restructuring the investment bank without raising equity. DB has completely exited the Equities trading business and therefore has managed to side-step some of the risks the likes of CS have faced. The problem is that restructuring an investment bank is a long, protracted, risky, and costly exercise. As such, the investment bank looks like it is sustainably earning its cost of capital as well as continuing to take market share. CS is expected to deliver its strategy update on the 27th of October. It is on a credible path to earning greater than 10% RoTCE by 2025, powered by strong tailwinds from the paradigm shift in the interest rates settings in the Eurozone. It also has a low-risk business model, which means it is likely to side-step the type of banana peels CS has stepped on. There appear to be major risk management matters plaguing its investment bank and fixing these will likely be a protracted and costly process. Deutsche Bank (NYSE: [DB](https://seekingalpha.com/symbol/DB)) is trading at 0.3x tangible book value.