8chan/8kun QResearch Posts (10)
#18527695 at 2023-03-18 00:56:37 (UTC+1)
Q Research General #22723: No Black Eye For Putin Edition
17 Mar, 2023 13:18
Political opposition to bank bailout growing in Switzerland
The government is assessing a range of options to rescue Credit Suisse
Switzerland's conservative Swiss People's Party disagrees with the government plan to rescue the country's second largest bank, Credit Suisse, a representative of the party, which is the country's largest, said on Thursday.
"The government shouldn't give Credit Suisse a state guarantee," a member of the party's leadership team, Thomas Matter, said, adding that "the Swiss National Bank was responsible for providing liquidity to Credit Suisse, and the SNB has acted."
Meanwhile, a spokesman for Switzerland's second-largest party, the Social Democrats, said his party is less opposed to the state aid but seeks "complete transparency."
The response comes after Credit Suisse received a credit line of nearly $54 billion from the Swiss National Bank to bolster its liquidity and reassure investors that the investment bank can stay afloat.
The Swiss authorities are running through a wide range of scenarios to rescue the country's second-biggest bank. One of the most discussed options is for Credit Suisse to be acquired by its larger rival, UBS, as the ailing lender cannot operate as a standalone bank, some analysts say.
Meanwhile, both lenders are reportedly opposed to a forced tie-up and see a takeover as a measure of last resort, Bloomberg reported on Thursday, citing sources familiar with the discussions.
UBS seeks to focus on its "wealth-centric standalone" strategy and is unwilling to take on risks related to Credit Suisse, the outlet said, while Credit Suisse, for its part, wants to buy time to get a handle on its problems after it received a liquidity backstop. In a memo to employees on Thursday, Credit Suisse CEO Ulrich Koerner said that the lender would prioritize its plans to strengthen the bank.
Another option, according to Bloomberg's sources, is to break up the lender and sell off the parts.
Credit Suisse shares plummeted to an all-time low this week after its largest shareholder, Saudi National Bank, refused to provide further financial assistance following a report by the Swiss lender of its "material weakness."
The Zurich-based bank has recently been battling to recover from a string of scandals and losses that have shaken the confidence of investors and clients. Customer outflows in the fourth quarter totaled over 110 billion Swiss francs ($120 billion).
(I remember three years ago on this board, Credit Swiss and French banks were over leveraged, under water and were going to destroy the EU. As usual they ignored the risk and the boomerang is back.A couple of weeks agothere was a post where jews sent subversives to Russia to create communism to destroy the country and people, the jews from Germany started Hitler, to create WWII and created the constant refrain of how 6 million jews were killed, while Russians lost 25 million people beating back the Nazis and saving the jews, etc. But the Russians get no praise. And before all this Swiss (not known as jews) married into American and Swiss and other countries Banker families and have been running this scam since the early 1900s or longer, to this day! It's time for the supposedly neutral Swiss that run the world, along with the rest of them to deal with their karma and full exposure. I'm remembering this not in specific order, it was a long document, but you get the gist!)
https://www.rt.com/business/573133-credit-suisse-rescue-opposition/
#18513276 at 2023-03-15 18:45:16 (UTC+1)
Q Research General #22704: The Little Potato Edition
Signature Bank Hosted Seminar On Gender Pronouns Like 'Ze' And 'Hir' 6 Months Before Collapse
Six months prior to its collapse, Signature Bank kicked off its "Social Impact" training series during which employees underwent training to learn how to "properly" use "gender-neutral pronouns."
At a "Know Your Pronouns" company seminar hosted by Signature Bank chairman Scott Shay, employees were lectured on how to pronounce "Ze" and "Hir."
https://www.thegatewaypundit.com/2023/03/signature-bank-hosted-seminar-on-gender-pronouns-like-ze-and-hir-6-months-before-collapse/
Credit Suisse Shares Tumble to New Record Low, Saudis Pull Funding, Trading Halts
Credit Suisse shares tumbled by as much as 30% to a new record low on Wednesday after Saudis pulled funding.
Trading in the Swiss banking giant's stock was halted several times on Wednesday.
Saudi National Bank, which holds 9.88% of Credit Suisse said it is unable to purchase anymore shares because of regulations.
"We cannot because we would go above 10%. It's a regulatory issue," Saudi National Bank Chairman Ammar Al Khudairy told Reuters.
Credit Suisse CEO Ulrich Koerner told Reuters the Swiss bank's liquidity base is "very, very strong."
CNBC reported:
Shares of Credit Suisse on Wednesday plunged to a fresh all-time low for the second consecutive day after a top investor in the embattled Swiss bank said it would not be able to provide any more cash due to regulatory restrictions.
Trading in the bank's plummeting stock was halted several times throughout the morning as it fell below 2 Swiss francs ($2.17) for the first time.
Swiss-listed Credit Suisse shares traded 17% lower at around 3 p.m. London time (11 a.m. ET), paring some of its earlier losses after dropping more than 30% at one point.
The share price rout renewed a broader sell-off among European lenders, which were already facing significant market turmoil as a result of the Silicon Valley Bank fallout. Some of the biggest decliners included France's Societe Generale, Spain's Banco de Sabadell and Germany's Commerzbank.
https://www.thegatewaypundit.com/2023/03/credit-suisse-shares-tumble-to-new-record-low-saudis-pull-funding-trading-halts/
FDIC Seeks Help To Restart Sale Of Silicon Valley Bank After First Attempt Falters
US banking regulators have been placed in a challenging situation following the collapse of Silicon Valley Bank, as they are now responsible for protecting depositors and preventing further bank runs. Regulators are now facing the daunting task of attempting to auction off the failed bank for a second time, but this time have sought the assistance of an investment bank to explore potential options.
Regulators at the US Federal Deposit Insurance Corp (FDIC) tapped advisors at the investment bank Piper Sandler Companies to relaunch a failed auction of SVB, according to Reuters, citing people familiar with the matter.
Officials from the FDIC seized SVB last Friday after $42 billion of deposit withdrawals one day prior caused the bank to fail. A weekend auction of the bank to top institutions proved to be unsuccessful.
On Monday, sources informed about the situation told WSJ that FDIC officials had told Senate Republicans that they now had more flexibility to sell the bank after it was declared a failure and threat to the US financial system.
Fast forward to Wednesday, these latest updates reveal that the FDIC is making arrangements for a potential second sale, with the possibility of considering selling the bank as a whole or exploring piecemeal deals.
Meanwhile, the parent of Silicon Valley Bank, SVB Financial Group, has been separately searching for a buyer for its investment bank and investment business.
It is worth noting that there were potential buyers for SVB over the weekend, but FDIC officials prevented the sale.
https://www.zerohedge.com/markets/fdic-seeks-help-restart-sale-silicon-valley-bank-after-first-attempt-falters
#18512933 at 2023-03-15 17:35:34 (UTC+1)
Q Research General #22703: Ides of March Edition
>>18512897
> trouble radar for some time now
Yes, I'm going over all the old stories now. Their credit downrating was notable to me at the time.
https://www.reuters.com/business/sp-downgrades-credit-suisse-group-moodys-cuts-some-ratings-2022-11-02/
Think this guy's ring is somehow symbolic of anything?
Ulrich Koerner is the CEO, or something.
#18507428 at 2023-03-14 20:45:01 (UTC+1)
Q Research General #22696: Happy Pi Day Edition
https://www.dailymail.co.uk/news/article-11857489/Will-Credit-Suisse-Bank-admits-material-weaknesses-financial-reporting-controls.html
Will Credit Suisse be next to need bail out? Bank admits 'material weaknesses' in financial reporting controls as it battles to shore up $120billion in customer withdrawals following a string of scandals as shares sink to all-time low
The annual report was delayed following queries from U.S. regulators regarding its books. The bank was supposed to publish its report last week but it postponed the release after a last-minute call from the U.S. Securities and Exchange Commission over revisions made to cash-flow statements for 2019 and 2020.
The bank's 'weakness' was in its capability to design and maintain effective risk assessments in its financial statements, the report stated.
The bank admitted in the report that 'the group's internal control over financial reporting was not effective' and 'management has also accordingly concluded that our disclosure controls and procedures were not effective.'
Battered by a string of scandals, its customer outflows in the fourth quarter rose to more than $120 billion (almost 110 billion Swiss francs), putting it in breach of some liquidity buffers.
The latest woes for Credit Suisse come amid fears of a banking crisis perpetuated by the concerning health of midsized banks and the collapse of Silicon Valley Bank last week.
But speaking earlier today, the bank's CEO Ulrich Koerner looked to quell doubts. 'Our SVB credit exposure is not material' he said, while insiders insisted the world's seventh largest investment bank, headquartered in Zurich, is more highly regulated than SVB in the U.S. and is 'conservatively positioned against any interest rate risks'.
On Tuesday morning, the bank's share price fell a further five percent during early trading in Europe, culminating to a record low amid market turmoil.
p1
#18506467 at 2023-03-14 17:09:24 (UTC+1)
Q Research General #22695: 2024 Is the Final Battle Edition
>>18505933 pb Credit Suisse Sees First Boston IPO by 2025 Amid Investor Search
Credit Suisse Retention Award Depends on 70% Jump in Stock Price
The worst bonus year for Credit Suisse Group AG bankers in more than a decade has them hanging their hopes on a 70% jump in the stock price. The annual bonus pool plunged 50% to 1 billion francs after 2022 brought a loss that wiped out a decade's worth of profit. To cushion the blow, Credit Suisse separately handed about 500 senior staffers a so-called transformation award worth up to 350 million francs ($383 million). That only pays out if it can meet key targets of its turnaround over coming years. The stock portion of the award - which is all of it for executive board members and half of it for others - depends on the shares reaching 3.82 francs or higher on Dec. 31, 2025. While that's 69% above Monday's close, the stock was trading near that level as recently as November, before a $4 billion capital raise. Credit Suisse's leaders shared in the pain of a brutal year, with the executive board receiving no bonuses and the chairman waiving his standard fee for that role, according to the firm's annual report Tuesday. Chief Executive Officer Ulrich Koerner said in a Bloomberg Television interview Tuesday that the reshaped bank will be more focused and less risky. "We will be very profitable and we will reward shareholders." His bankers have plenty riding on that being right.
https://www.bnnbloomberg.ca/credit-suisse-retention-award-depends-on-70-jump-in-stock-price-1.1895420
That would put it at $4.25 based on $2.50/sh and basically one good solid day of short-covering and momo-traders piling in.
#18505933 at 2023-03-14 15:08:17 (UTC+1)
Q Research General #22694: Tuesday Morning Melania Edition
Credit Suisse Sees First Boston IPO by 2025 Amid Investor Search
Credit Suisse Group AG's top executive said he expects to take the firm's carved-out investment bank public by 2025 as he continues to search for investors in the business that will revive the storied First Boston name. "We have a very clear plan to put it into market, creating a liquidity event, most likely an IPO, and expect such an event in 2025," Ulrich Koerner, the chief executive officer of Credit Suisse, said in an interview with Bloomberg TV's Francine Lacqua. Asked if the bank was closer to finding an anchor investor, Koerner said "we are close to, but I don't know if it's an anchor investor. We have a lot of interest from third parties to be invested."
The First Boston spinoff is a centerpiece of Koerner's restructuring plan, unveiled last year after racking up huge losses and battling to retain top talent following a string of scandals. In separating the business, the CEO is seeking to protect the best-performing investment bank parts, such as advising on mergers and acquisitions, while pivoting the parent company further toward wealth management. Credit Suisse announced earlier today that senior leaders in the carved-out unit are expected to receive up to 20% of shares. Employees would receive restricted share units after an IPO, which would vest three years later and be subject to a further holding requirement.
Credit Suisse previously said it wants to be ready to list the unit by the end of 2024 or early 2025. As part of the carve-out, the investment bank boutique of former board member Michael Klein, who had pushed for the plan, will be integrated into CS First Boston. Credit Suisse, which agreed to buy Klein's business, will remain majority shareholder of CS First Boston, Koerner said.
https://www.bnnbloomberg.ca/credit-suisse-sees-first-boston-ipo-by-2025-amid-investor-search-1.1895348
https://finance.yahoo.com/quote/CS
Now at some point the short interest in gonna clear out of this (currently pretty low and below it's daily average @ 16,710,000 shares) but in a two fiddy stock it won't take much to juice it a bit)
https://www.marketbeat.com/stocks/NYSE/CS/short-interest/
#18505302 at 2023-03-14 12:05:11 (UTC+1)
Q Research General #22693: Into Morning Light Edition
>>18505294
Credit Suisse shares fall to all-time low as bank announces it has found 'material weakness' - just hours after Wall Street expert predicted that it would be the next to fall after SVB
Robert Kiyosaki - author of Rich Dad Poor Dad, infamously called the 2008 Lehman Brothers' collapse, which deepened the financial crisis of the time
The bank's CEO Ulrich Koerner tried to quell doubts, saying their Silicon Valley Bank 'credit exposure is not material'
https://www.dailymail.co.uk/news/article-11857123/Wall-Street-expert-predicts-Credit-Suisse-bank-fold.html
#18008690 at 2022-12-24 18:49:52 (UTC+1)
Q Research General #22067: Merry Christmas Eve Anons Edition
Credit Suisse Sues, Files Criminal Complaint, Against Financial Blog "Harshly Critical" Of The Bank
Today in things not to do when you're not panicking news…
Credit Suisse has reportedly filed a criminal complaint against a financial blog in Zurich, escalating a legal attack the bank has been putting in place over reader comments that were appended to a series of stories the blog ran about the bank earlier this year.
Bloomberg reports that the complaint follows a 265 page civil lawsuit that was filed over the comments, which the bank said "were harshly critical of it and some of its executives", including the bank's new CEO Ulrich Koerner.
The civil claim against the publisher was for 300,000 Swiss francs ($322,000) and demanded the retraction of comments on the blogs. The bank has argued that the blog, Inside Paradeplatz, should have exercised more discretion in picking what comments it allowed to publish.
Filing a criminal claim now escalates the situation, as a conviction of defamation could result in a fine or up to three years in prison, Bloomberg wrote on Friday.
Credit Suisse would not comment on the complaint and simply told Bloomberg it had "decided to proceed with a legal review of the legality of reader comments and texts. We are taking this step to protect our employees, who are regularly the subject of abusive and disparaging comments on the blog."
Sure sounds like everything is going just peachy over at Credit Suisse…
https://www.zerohedge.com/markets/credit-suisse-sues-then-files-criminal-complaint-against-financial-blog-was-harshly
#18007964 at 2022-12-24 15:39:13 (UTC+1)
Q Research General #22066: Popcorn's Kraken Edition
>>17979016 pb New York Federal Reserve US $ Swap Ops with Swiss National Bank (SNB)-a few billion coming for the end of the year balance sheet pad after "test" ops of $1m
>>18006292 pb Summary of Derivatives-Fed Pivot Hyper/Deflation and a 'created' crisis using Credit Suisse-also in above link
Credit Suisse Sues, Files Criminal Complaint, Against Financial Blog "Harshly Critical" Of The Bank
Today in things not to do when you're not panicking news…
Credit Suisse has reportedly filed a criminal complaint against a financial blog in Zurich, escalating a legal attack the bank has been putting in place over reader comments that were appended to a series of stories the blog ran about the bank earlier this year. Complaint follows a 265 page civil lawsuit that was filed over the comments, which the bank said "were harshly critical of it and some of its executives", including the bank's new CEO Ulrich Koerner. The civil claim against the publisher was for 300,000 Swiss francs ($322,000) and demanded the retraction of comments on the blogs. The bank has argued that the blog, Inside Paradeplatz, should have exercised more discretion in picking what comments it allowed to publish. Filing a criminal claim now escalates the situation, as a conviction of defamation could result in a fine or up to three years in prison, Bloomberg wrote on Friday.
Credit Suisse would not comment on the complaint and simply told Bloomberg it had "decided to proceed with a legal review of the legality of reader comments and texts. We are taking this step to protect our employees, who are regularly the subject of abusive and disparaging comments on the blog."
Sure sounds like everything is going just peachy over at Credit Suisse…
https://www.zerohedge.com/markets/credit-suisse-sues-then-files-criminal-complaint-against-financial-blog-was-harshly
Original source
https://www.bloomberg.com/news/articles/2022-12-23/credit-suisse-files-criminal-complaint-against-zurich-blog-over-reader-comments
Yep..everything is just FINE with it's $17.8B worth of derivatives-and that's just what they report(ed).
Remember the BIS "found" $80T worth of those same piles of shit that they were not aware of in the entire system..and again another instance of this is just what they report.
#13393113 at 2021-04-09 21:53:12 (UTC+1)
Q Research General #16965: It's a Beautiful Day in QResearch Edition
BlackRock, State Street Exploring Takeover Of Credit Suisse Asset Management Arm
Earlier, several financial media outlets reported that Credit Suisse was considering dramatically shrinking or selling off its prime brokerage unit, the hedge-fund-focused business that just lost $4.7 billion for the bank, obliterating 18 months of the bank's average net profits.
But in the last few hours, the focus has shifted to the bank's asset management unit, amid reports that several American firms might be interested in making a bid, even as the bank has yet to release the final tally of expected losses from the Greensill debacle.
With Credit Suisse stock trading at its lowest level in months after a 25% drop, some apparently see an opportunity for a deal. According to Reuters, a SPAC has partnered with BlackRock to hash out the possibility of making a bid to spin out Credit Suisse's asset management business, where the busted Greensill-stocked trade finance funds were based.
And they're not the only bidders. BlackRock rival State Street is also reportedly weighing a bid.
BlackRock and Jean-Pierre Mustier's blank-check firm are among investors expressing interest in Credit Suisse's asset management arm, three sources told Reuters, as the Swiss lender explores options for the unit after a run of costly scandals.
U.S. investment firm State Street Corp is also eyeing a rival bid for all or part of the Swiss bank's fund management business, while European asset managers including Germany's DWS are waiting in the wings, the sources said, speaking on condition of anonymity.
Former UniCredit boss Mustier's blank-check firm Pegasus Europe, which focuses on financial services investments, is due to list in Amsterdam between the end of April and early May, two sources said.
A spokeswoman for Credit Suisse said the bank had no plans to sell all or any parts of its asset management business. BlackRock, State Street, DWS and Pegasus Europe all declined to comment.
The sources said Credit Suisse is in the early stages of a strategic review of its asset management arm and has yet to entertain in-depth discussions with interested parties.
The bank will need to wait for former Lloyds boss Antonio Horta-Osorio to take over as chairman in May before any decision on whether to sell or spin off the unit can be taken, the sources said, cautioning no deal was certain. Credit Suisse in March announced an overhaul of the asset management unit amid the fallout from the Greensill debacle, bringing in former UBS executive Ulrich Koerner to lead the unit and separating it from international wealth management.
As Bloomberg reported in a piece published Friday, Horta-Osorio has a few possible strategies that he can embrace as he leads the turnaround of the bank. They include: a housecleaning that shrinks the Credit Suisse balance sheet and reduces capital allocated to the investment bank, selling parts of the business to deepen its focus on wealth management and rebuild capital (though that would probably be better served by selling the prime brokerage business, not the asset management arm), acquiescing to an acquirer (Barclays? Deutsche Bank?). Or simply merging with UBS.
https://www.zerohedge.com/markets/blackrock-state-street-exploring-takeover-credit-suisse-asset-management-arm
8kun Midnight Riders Posts (1)
#74417 at 2021-03-31 13:56:47 (UTC+1)
QR Midnight Riders #334: Information Warfare Rages On Edition
Credit Suisse to Make Payment in Scandal-Hit Fund in Coming Weeks
Credit Suisse Group AG plans to make a further cash repayment to investors in its scandal-hit $10 billion group of supply chain funds in coming weeks after returning $3.1 billion so far to investors. The payment will be made by early to mid-April the bank said, adding that it expects the majority part of the funds' investments to be recovered in the liquidation process. The bank said the four funds have current cash equivalents of about $1.5 billion. The funds need to retain some cash to ensure the ability to wind down the portfolio in the best interest of investors, the bank said. "We continue to explore other options for expediting the return of cash to investors," the bank said in an Q&A on its website.
Credit Suisse is battling on multiple fronts. The Swiss bank expects its loss tied to the implosion of Archegos Capital Management to run into the billions, according to people with knowledge of the matter, while it is still grappling with litigation threats from investors, potential financial losses and regulatory scrutiny around Greensill. Earlier this month, the bank replaced asset management head Eric Varvel with ex-UBS Group AG executive Ulrich Koerner.
The bank also said today that a suspension of separate funds that had invested in the supply chain finance strategy will be lifted, while the hard-to-value assets will be separated into side-pockets.
https://www.bnnbloomberg.ca/credit-suisse-to-make-payment-in-scandal-hit-fund-in-coming-weeks-1.1584727
Notice how it does not say "full repayment" and the "hard-to-value assets" i.e. those valued with mark-to-model instead of mark-to-market (real value) will be "separated"…..
8chan/8kun QRB Posts (4)
#149943 at 2022-10-03 13:01:14 (UTC+1)
QRB General #1011: Moar Ones & Zeros Edition
>>149913 Credit Suisse CEO Seeks to Calm as Default Swaps Near 2009 Level
well that din't werk...pretty much backfired
Credit Suisse shares hit record low as CEO fails to calm markets
redit Suisse Group hit a fresh record low after attempts to reassure markets on its financial stability only added to the sense of turmoil surrounding the troubled Swiss bank.
The shares dropped as much as 12 per cent in Zurich trading on Monday to 3.52 Swiss francs. The bank has lost about 60 per cent of its market value just this year alone and is on track for the biggest ever annual drop in its history.
Chief executive Ulrich Koerner had sought to calm employees and the markets over the weekend after the stock touched a record low and credit default swaps (CDS) climbed last week. While touting the bank's capital levels and liquidity, he acknowledged that the firm was facing a "critical moment" as it worked towards its latest overhaul plans.
https://www.straitstimes.com/business/banking/credit-suisse-shares-hit-record-low-as-ceo-fails-to-calm-markets
#149913 at 2022-10-03 00:02:29 (UTC+1)
QRB General #1010: It's All Just Ones & Zeroes Edition
Just as a reminder the Queen of Credit Default Swaps (CDS)-Bythe Masters- is on the BoD at Credit Suisse having been 'elected' in 2021-although all it takes is one of these big banks to have trouble to set off the derivatives chain I'd say it's even money between this or Deutsche Bank triggering the next panic
Credit Suisse CEO Seeks to Calm as Default Swaps Near 2009 Level
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 like a long time. The cost of insuring the firm's bonds against default climbed about 15% last week to levels not seen since 2009 as the shares touched a new record low. On Friday, Chief Executive Officer Ulrich Koerner reassured 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 Oct. 27.
Koerner, who was named CEO in late July, has had to deal with market speculation, banker exits and capital doubts as he seeks to set a path forward for the troubled Swiss bank. The lender is currently finalizing plans that will likely see sweeping changes to its investment bank and may include cutting thousands of jobs over a number of years, Bloomberg has reported.
Koerner's memo was the second straight Friday missive as speculation over the beleaguered bank's future increases. Analysts at KBW estimated that the firm may need to raise 4 billion Swiss francs ($4 billion) of capital even after selling some assets to fund any restructuring, growth efforts and any unknowns.
Credit Suisse's market capitalization dropped to around 10 billion Swiss francs ($10.1 billion), meaning any share sale would be highly dilutive to longtime holders. The market value was above 30 billion francs as recently as March 2021. Credit Suisse executives have noted that the firm's 13.5% CET1 capital ratio at June 30 was in the middle of the planned range of 13% to 14% for 2022. The firm's 2021 annual report said that its international regulatory minimum ratio was 8%, while Swiss authorities required a higher level of about 10%.
https://www.bnnbloomberg.ca/credit-suisse-ceo-seeks-to-calm-as-default-swaps-near-2009-level-1.1827028
cap #2 is oldish but still very relevant-it's still 'insurance against failure'-Blythe and her crew while at JP Morgue basically invented this market (and via Digital Assets were attempting to digitize or tokenize the derivatives shit-pile before she was ousted in Dec. 2019-and many of them still have a ton of it tied to Russian debt or currency
You may need to enlarge it to see the details-sorry about that
#47360 at 2021-04-22 14:01:25 (UTC+1)
QRB General #115: Covid Press Summation Edition
Credit Suisse Races to Contain Archegos Hit With $2B Capital Raise
Credit Suisse Group AG moved to contain the fallout from two of the worst hits in its recent history with a surprise capital increase and a sweeping overhaul of its business with hedge funds.
Switzerland's second-largest bank is raising $2 billion from investors to shore up capital depleted by $5.5 billion in losses from the collapse of Archegos Capital Management. Chief Executive Officer Thomas Gottstein, who until recently had brushed off concerns that Credit Suisse was taking excessive risks, struck a humble tone Thursday, vowing to slash lending in the hedge fund unit at the center of the losses by a third.
Gottstein, in the role for little more than a year, is trying to persuade incoming Chairman Antonio Horta-Osorio that he's the right person to lead Credit Suisse, after the bank was hit harder than any competitor by the collapse of Archegos, the family office of U.S. investor Bill Hwang. The timing could hardly have been worse, coming just weeks after the lender found itself at the center of the Greensill Capital scandal, when it was forced to freeze a $10 billion group of investment funds. "Clearly this loss came as a big surprise," Gottstein said about Archegos. "Is it an isolated case? I definitely hope it is and I think it is, but we are obviously reviewing the entire bank now just to make sure that our risk processes and systems are where they should be." Credit Suisse fell as much as 6.9% in Zurich trading and was 5.3% lower as of 1:54 p.m. local time, taking this year's losses to about 22%. It's the worst-performing major bank stock this year and has also suspended a share buyback and cut the dividend.
Having taken on the position more than a year ago, the CEO had stumbled over other hits before Greensill shattered what was supposed to be a new era of calm. While seeking to placate investors hurt by the losses, he also now faces the fresh challenge of navigating enforcement proceedings announced by Swiss regulator Finma on Thursday. The scandals have left the CEO standing while many once powerful members of his management board had to leave. Gone are investment banking head Brian Chin and Chief Risk Officer Lara Warner, along with a raft of other senior executives including equities head Paul Galietto and the co-heads of the prime brokerage business. Asset management head Eric Varvel is also being replaced in that role by ex-UBS Group AG veteran Ulrich Koerner.
The bank now plans to reduce risk at the investment bank, including cutting about $35 billion of leverage exposure at the prime brokerage unit that services hedge funds, Gottstein said in an interview with Bloomberg Television. That's about a third of the leverage its extends in that business. Going forward, the bank plans to only service clients in that unit if they do business with other parts of Credit Suisse as well, such as the wealth management unit.
https://www.bnnbloomberg.ca/credit-suisse-races-to-contain-archegos-hit-with-capital-raising-1.1593806
this gets better and better each day...
#44663 at 2021-04-09 22:13:44 (UTC+1)
QRB General #86: Not For Prime Time Edition
BlackRock, State Street Exploring Takeover Of Credit Suisse Asset Management Arm
Earlier, several financial media outlets reported that Credit Suisse was considering dramatically shrinking or selling off its prime brokerage unit, the hedge-fund-focused business that just lost $4.7 billion for the bank, obliterating 18 months of the bank's average net profits. But in the last few hours, the focus has shifted to the bank's asset management unit, amid reports that several American firms might be interested in making a bid, even as the bank has yet to release the final tally of expected losses from the Greensill debacle.
With Credit Suisse stock trading at its lowest level in months after a 25% drop, some apparently see an opportunity for a deal. According to Reuters, a SPAC has partnered with BlackRock to hash out the possibility of making a bid to spin out Credit Suisse's asset management business, where the busted Greensill-stocked trade finance funds were based. And they're not the only bidders. BlackRock rival State Street is also reportedly weighing a bid. BlackRock and Jean-Pierre Mustier's blank-check firm are among investors expressing interest in Credit Suisse's asset management arm, three sources told Reuters, as the Swiss lender explores options for the unit after a run of costly scandals.
U.S. investment firm State Street Corp is also eyeing a rival bid for all or part of the Swiss bank's fund management business, while European asset managers including Germany's DWS are waiting in the wings, the sources said, speaking on condition of anonymity. Former UniCredit boss Mustier's blank-check firm Pegasus Europe, which focuses on financial services investments, is due to list in Amsterdam between the end of April and early May, two sources said. A spokeswoman for Credit Suisse said the bank had no plans to sell all or any parts of its asset management business. BlackRock, State Street, DWS and Pegasus Europe all declined to comment.
The sources said Credit Suisse is in the early stages of a strategic review of its asset management arm and has yet to entertain in-depth discussions with interested parties. The bank will need to wait for former Lloyds boss Antonio Horta-Osorio to take over as chairman in May before any decision on whether to sell or spin off the unit can be taken, the sources said, cautioning no deal was certain. Credit Suisse in March announced an overhaul of the asset management unit amid the fallout from the Greensill debacle, bringing in former UBS executive Ulrich Koerner to lead the unit and separating it from international wealth management.
As Bloomberg reported in a piece published Friday, Horta-Osorio has a few possible strategies that he can embrace as he leads the turnaround of the bank. They include: a housecleaning that shrinks the Credit Suisse balance sheet and reduces capital allocated to the investment bank, selling parts of the business to deepen its focus on wealth management and rebuild capital (though that would probably be better served by selling the prime brokerage business, not the asset management arm), acquiescing to an acquirer (Barclays? Deutsche Bank?). Or simply merging with UBS.
https://www.zerohedge.com/markets/blackrock-state-street-exploring-takeover-credit-suisse-asset-management-arm
The loss they have experienced is most likely MUCH larger than being reported
endchan qrbunker Posts (3)
#69922 at 2022-10-26 23:35:00 (UTC+1)
QR Bunker General #202: A Twit For Twat??? Edition
'''since they are still not resolving this the way they wanted "good bank/bad bank" there will be another US $ swap and prolly had to do it earlier than the previous weeks'''
'''Apollo, Pim(p)co in Talks to Buy Credit Suisse SPG Assets'''
A group including Apollo Global Management Inc. is in advanced talks to buy at least part of Credit Suisse Group AG's securitized products business, according to people familiar with the matter. The group also includes fund manager Pimco, said the people, who asked to not be identified because the matter isn't public. The structure of the potential deal is unclear. No final decision has been made and the talks could fall through, the people added. The sale of the profitable though capital-intensive business is a key pillar of Credit Suisse's plan to downsize its money-losing investment bank and help pay for other restructuring moves. With its shares trading close to record lows, the Zurich-based bank is due to announce further details of its second strategy revamp this week.
The SPG business, led since 2016 by New York-based trader Jay Kim, buys and sells securities backed by pools of mortgages and other assets, such as car loans or credit-card debt. The division also provides financing to clients who want to buy these products and will "securitize" loans -- dicing them into new securities of varying risk and return -- on their behalf and sell them to investors for a fee.
The bank, which had initially only flagged openness to third-party capital for the SPG unit, said last month that it's also considering other asset sales as it seeks funds to help pay for the restructuring. While the final costs will depend on a multitude of factors including the number of job losses and business exits, the bank could be facing a capital shortfall of as much as 8 billion francs ($8 billion), Goldman Sachs Group Inc. estimates.
Under Chief Executive Officer Ulrich Koerner, Credit Suisse is also seeking outside capital for a potential spinoff of businesses including advisory, dealmaking and leveraged finance. The bank is interested in an outside investor to take a partial stake in order to provide capital and help fund the costs of hiring and keeping talent, Bloomberg has reported.
https://www.bnnbloomberg.ca/apollo-pimco-in-talks-to-buy-credit-suisse-spg-assets-1.1837815
#59607 at 2022-10-20 16:56:00 (UTC+1)
QR Bunker General #175: CCP Puppet Takess Over UK Edition
'''Dhey should be getting another one of these today too >>51433 pb NYFRB bailout to SNB fer Credit Suisse and then tomorrow the swappage with the ECB like last friday..lather,rinse repeat'''
==Credit Suisse Weighs Convertible Bond to Help Pay for Overhaul
Credit Suisse Group AG is considering the issuance of convertible bonds or preferred shares among options to help pay for its overhaul and strengthen its balance sheet, people familiar with the matter said.
A convertible bond would allow the bank to potentially limit the sale of shares at depressed current prices after the stock lost about half its value this year. The Swiss firm used mandatory convertible notes to raise about $2 billion to mend its balance sheet after the collapse of Archegos Capital Management in 2021.
After years of scandals and multibillion-dollar losses, investors are still seeking clues on what it will cost for Chief Executive Officer Ulrich Koerner to restore confidence in the historic Swiss firm. Analysts have estimated the bank's capital hole at $4 billion to as much as $9 billion over the coming years, though executives are working on asset sales to limit the need to raise money in the market.
A Credit Suisse spokesman declined to comment. The people who described the money-raising options asked not to be identified as talks are private.
The Zurich-based bank is working with Royal Bank of Canada and Morgan Stanley on a potential capital increase, people familiar said earlier this week. Those discussions buttress efforts to dispose of some areas of the business, likely to include large parts of the investment bank, the securitized products unit and potentially asset management in the US.
The bank has already reached out to key shareholder the Qatar Investment Authority to gauge the sovereign wealth fund's interest in a potential capital injection, people familiar with the matter said earlier. Other Middle Eastern funds, such as Abu Dhabi's Mubadala Investment Co. and Saudi Arabia's Public Investment Fund, are separately weighing whether to put money into Credit Suisse's investment banking arm or other businesses, the people said.
Credit Suisse current troubles emanate at least in part from the collapse of Archegos, the family office of Bill Hwang, which cost the firm about $5.5 billion. That made it the worst-hit of the Wall Street banks. With analysts questioning the bank's capital, it issued two series of mandatory convertible notes in the aftermath that translated to 203 million shares.
The first note was placed with a group of shareholders, including the QIA, and high-net -worth clients. That same group of investors pledged to backstop the issuance of the second note to remaining shareholders to ensure full take up. The two notes converted into shares after 6 months.
https://www.bnnbloomberg.ca/credit-suisse-weighs-convertible-bond-to-help-pay-for-overhaul-1.1835360
#48481 at 2022-10-11 14:09:00 (UTC+1)
QR Bunker General #138: theY Don't Want Danchenko Info Out, Begin The End Edition
>>43701 Moar on Suisse Bank swap connections
'''Still using dis as the fulcrum point and can't get it up and over $5 (most 'tutes, managed money won't buy anything under $5-and why shitigroup did a reverse split after the 2008 mkt event) and Goldman has the least amount of assets back it's derivatives shitpile-$434B 'backing' almost $48T-for them to say this...with it's lack of backing'''
==Credit Suisse Facing $8 Billion Capital Shortfall, Goldman Says==
Credit Suisse Group AG faces a capital shortfall of as much as 8 billion Swiss francs ($8 billion) in 2024, analysts at Goldman Sachs Group Inc. estimate, underscoring the challenges for the troubled lender as it nears what's likely to be a deep restructuring.
At the very least, the Zurich-based firm is facing a hole of 4 billion francs, given the need to restructure the investment banking operations at a time of "minimal" capital generation, analysts led by Chris Hallam wrote. That means it would be "prudent" for the lender to raise capital. "Credit Suisse continues to face cyclical and structural challenges," the analysts wrote in a note, maintaining a sell recommendation on the stock. The firm is exploring radical cuts to its volatile investment bank, including spinning off large parts and hiving off its securitized products group, as Chief Executive Officer Ulrich Koerner seeks to put an end to years of scandals and losses. Yet with a key question -- how to pay for it -- unanswered roughly two weeks before he's due to present his plan, speculation about the lender's financial strength has sent its shares on a rollercoaster ride.
The stock rose as much as 2% on Tuesday and was trading up 0.5% as of 1:03 p.m. local time yerp time-. While raising capital is one option under consideration, Credit Suisse executives would strongly prefer not to issue equity with the share price near record lows, Bloomberg News previously reported.
https://www.bnnbloomberg.ca/credit-suisse-facing-8-billion-capital-shortfall-goldman-says-1.1830755