Credit Suisse faces share-price turbulence, as fear sweeps the market

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Investors are unlikely to lose their shirts. Yet they have plenty of reasons to grumble

found that shaky shareholders can do lots of damage, too. Saudi National Bank, the firm’s biggest shareholder, appears to be suffering a bad case of buyer’s remorse. Quizzed about any further investment in Credit Suisse, the response from the Saudi bank’s chairman was brutal: “Absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory.”

. Multibillion-dollar losses from Credit Suisse’s dealings with Archegos Capital, a family office that collapsed in 2021, and Greensill Capital, a supply-chain-finance firm that also imploded that year, are near the top of the list. Last year clients withdrew cash from every corner of the bank. It was all too much for one long-term shareholder: Harris Associates, an investment firm, sold the last of its shares.

When shareholders finally got their hands on the report on March 14th, it made for grim reading. At the end of 2022 Credit Suisse posted its fifth consecutive quarterly loss. Raising SFr4bn late last year repaired the bank’s common equity to risk-weighted assets ratio, a crucial indicator of a bank’s capital strength. The figure now stands at a respectable 14.1%, up from 12.6% at the end of September.

Although Ulrich Körner, Credit Suisse’s chief executive, hopes to trim the cost base and restructure its investment bank, more pain could lie ahead. The remodelled investment bank, calledFirst Boston, will revolve around Michael Klein, a dealmaking supremo. He had served on Credit Suisse’s board of directors until October 2022. In February the bank bought his boutique advisory shop for $175m.

 

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Can't have everything but scaring the pants off you sordid clients now and then does give some hope for future improvement.

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Credit Suisse’s share price plunges, as fear sweeps the marketWhat will release the bank from its waking nightmare? Don't worry Biden will save them ...USA to the rescue Başta ABD olmak üzere Batı Kapitalizmi.,çürüyen imajını siyaset eliyle güçlendirmeye çalışıyor.! Bancos, por que tê-los?
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