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

  • 📰 TheEconomist
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 92%

United States News News

United States United States Latest News,United States United States Headlines

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%.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

At the last moment of downfall

😘🤭🤦

John help me Please!!!

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

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