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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Source: TheEconomist - 🏆 6. / 92 Read more »