Credit Suisse and the hunt for the weakest link in global finance

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So far Credit Suisse is not an example of a business model which, in its spectacular excesses and implosion, encapsulates a broader madness in the markets

Furthermore, Credit Suisse has been poorly run and struggling for some time. It has suffered repeated risk-management and compliance scandals, including being exposed to losses from Archegos and Greensill. Its top management ranks have been a revolving door.

Its problems are idiosyncratic and, to a degree, an expression of management caution rather than recklessness. It owns a sub-par investment banking unit that needs to be shrunk or shut down. Based on the second-quarter results this division eats up 30% of its risk-adjusted assets and has annualised costs of SFr8bn . It is largely to blame for the firm’s overall quarterly pre-tax loss of SFr1.17bn and awful return on equity of minus 14%.

 

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At the last moment of downfall

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John help me Please!!!

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The hunt for the weakest link in global financeCredit Suisse won’t be the last firm to fall under the spotlight So 2008, but 6x as big because we’ve learned nothing?
Fonte: TheEconomist - 🏆 6. / 92 Consulte Mais informação »