3,852
 

Oct 2 - Credit Suisse in Serious Trouble: Credit Default Swaps Near 2009 Levels



ADVERTISEMENT
 
topics gone triple plat - Number 1 spot 3X PLAT
most viewed right now
  150
51 replies  @hiphop

most viewed right now
+37  64
79 replies  @hiphop



section  x1   |  0 bx goons and 1 bystanders Share this on Twitter       Share this on Facebook

section news
  
 2 months ago '17        #1
2185 page views
36 comments


Ats  topics gone triple plat - Number 1 spot x13
avatar
Props total: 36301 36 K  Slaps total: 3616 3 K
Oct 2 - Credit Suisse in Serious Trouble: Credit Default Swaps Near 2009 Levels
 

 
image

image

Speculation surrounding the future of the Swiss banking giant has been going on for several months in the markets, in business and political circles, as well as on social networks.

The No. 2 Swiss bank and one of the largest banks in the world is in deep trouble and is currently f*ghting for its survival. A negative outcome is likely to cause a shock similar to that caused by the bankruptcy of the U.S. bank Lehman Brothers in September 2008. This event triggered one of the most serious financial and economic crises since the Great Depression.

Nightmare

A year ago, Credit Suisse had a market capitalization of $22.3 billion. Today, its market value is only $10.4 billion. Credit Suisse shares fell 56.2% in one year to $3.98.

It is a real nightmare for the bank which had succeeded in weathering the financial crisis without losing too many feathers. At the time of this crisis, Credit Suisse shares had certainly fallen but they were down only to the level of $45, which seemed to be a feat for a bank at the time.

What happened? How did we get here?

In recent days, employee morale has been gloomy. The bank has not yet renewed the contracts of certain contractors. Departures are no longer really replaced, TheStreet has learned. It is austerity cure.

The talent is leaving. The bank has just lost one of its senior dealmakers, Jens Welter, who left to join Citigroup after 27 years with the establishment. Welter was global co-head of banking when he left. Another departure is head of global credit products Daniel McCarthy.

"I am conscious that there is lots of uncertainty and speculation both outside and within the company," Chief Executive Officer Ulrich Körner told employees in a memo on Sept. 30. "While you will appreciate that I am unable to share details of our transformation plans before October 27, I also want to make sure that you hear from me directly during this challenging period. I will therefore be sending a regular update to you all until then."

In this memo seen by TheStreet, the CEO explained that "this is a critical moment" for the bank and warned employees that the rumors and speculations will continue and will become even louder.

Stock Price vs. the Company's Health

He a*sured them that the stock price does not reflect the financial health of the firm.

"I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank," he said.

"We are in the process of reshaping Credit Suisse for a long-term, sustainable future - with significant potential for value creation," Körner added. "I am confident we have what it takes to succeed."

Credit Suisse is a universal bank, which offers traditional services and products to consumers, mainly in Switzerland. But the establishment is known globally for its investment banking activities - trading, deals such as mergers and acquisitions, bonds, securities, etc - and wealth management operations. It is the investment bank which put the firm in these difficulties, even if it was, for a very long time, one of the big sources of revenue and profits for Credit Suisse.

The Scandals: Greensill, Archegos

Indeed, the mistakes of the investment bank have plunged Credit Suisse into numerous successive scandals in recent years, reviving speculation about its bankruptcy or its merger with its rival UBS.

Two scandals occurred almost one after the other in 2021 and caused losses of several billion dollars to the bank.

The first is the bankruptcy of Greensill. Founded in 2011, the British company is a supply chain and accounts receivables lender, that specializes in lending money to companies so that they can pay their suppliers. It then packages the debts of these companies into financial securities which it resells to investors.

The house of cards began to crumble when these investors, including Credit Suisse, had doubts about the real value of the debts and abandoned Greensill, which then filed for bankruptcy in March 2021.

Credit Suisse invested $10 billion of its clients in Greensill products.

The second scandal in the spring of 2021 involved family office Archegos Capital Management. Bill Hwang is a South Korean investor based in New York. Tiger Asia, a company he funded in the 2000s, suffered a major setback in 2012 because of insider trading allegations. Hwang gradually revived Tiger Asia which became Archegos.

While his company would manage $10 billion, Hwang convinced banks, including Credit Suisse, to lend him $30 billion to invest more. In 2020, he invested heavily in ViacomCBS (VIACA) , which saw the value of its shares soar.

Oct. 27: D-DAY

At the beginning of 2021, Credit Suisse asked Archegos to deposit funds. Hwang promised to reduce the risks. But in March 2021, ViacomCBS shares crashed and the banks asked Archegos to cover the losses, which it was no longer able to do. As a result Hwang's company went bankrupt.

"The investigation found a failure to effectively manage risk in the Investment Bank’s Prime Services business by both the first and second lines of defense as well as a lack of risk escalation," an independent investigation ordered by Credit Suisse concluded.

"In the same business, it also found a failure to control limit excesses across both lines of defense as a result of an insufficient discharge of supervisory responsibilities in the Investment Bank and in Risk, as well as a lack of prioritization of risk mitigation and enhancement measures (such as dynamic margining)."

To avoid filing for bankruptcy, Credit Suisse has promised to present a strategic plan on Oct. 27. This should include the divestment of investment banking activities, the black sheep, speculate the markets.

The bank "is well on track with its comprehensive strategic review including potential divestitures and a*set sales," it said on Sept. 26.

Survival requires refocusing on wealth management, industry sources say.

visit this link https://www.thestreet.com .. n-deep-trouble


Last edited by Ats; 10-03-2022 at 09:37 AM..
+5   



best
worst
36 comments
 

 2 months ago '07        #2
stogz  topics gone triple plat - Number 1 spot x1
Props total: 130365 130 K  Slaps total: 16127 16 K
bespoke tranche opportunities?
+6   

 2 months ago '17        #3
yousabitch 
Props total: 28135 28 K  Slaps total: 8572 8 K
Magas will blame Biden
+6   

 2 months ago '17        #4
Ats  topics gone triple plat - Number 1 spot x13 OP
Props total: 36301 36 K  Slaps total: 3616 3 K
 yousabi*ch said
Magas will blame Biden
And s*xuals will blame Trump. Bottom line is this was all in motion before either of them got into office.
+7   

 2 months ago '10        #5
Account001 
Props total: 6031 6 K  Slaps total: 1334 1 K
Interesting...

I'm a*suming the posters above me did read the article or they belive Switzerland is part of the US
+16   

 2 months ago '22        #6
RockyIII 
Props total: 3000 3 K  Slaps total: 1157 1 K
 Account001 said
Interesting...

I'm a*suming the posters above me did read the article or they belive Switzerland is part of the US
No but I hear they got some oil they need to be liberated

But this will have a global impact, maybe not the impact 2008 had in the US but it’s sure to come this way as well.

You know how BX is.. .001% of the posters here have the ability to read with comprehension. Otherwise it’s “Biden’s fault” or “look what trump left us with” type bullsh*t
+6   

 2 months ago '14        #7
NYSTATEOFMIND 
Props total: 18038 18 K  Slaps total: 992 992
sh*t, they one of my jobs biggest clients...guess they aint gonna be hiring no time soon

+2   

 2 months ago '17        #8
Skrr 
Props total: 8549 8 K  Slaps total: 1474 1 K
 Mozzie said
And s*xuals will blame Trump. Bottom line is this was all in motion before either of them got into office.
Literally nothing to do with either of them individually

I swear we better not bail these fu*ks out again
+3   

 2 months ago '22        #9
K Durants Brush 
Props total: 3496 3 K  Slaps total: 149 149



Meme's will run.



+6   

 2 months ago '06        #10
lolo702 
Props total: 497 497  Slaps total: 105 105
 K Durants Brush said




Meme's will run.



Yea they will:
+6   

 2 months ago '05        #11
OG T Gutta N  topics gone triple plat - Number 1 spot x5
Props total: 15845 15 K  Slaps total: 4122 4 K
InHey , remember how've I've been posting that conspiracy theory on Reddit about the stock market being manipulated, cellar boxing , nekkid shorts , Jeff bezos , huge crash , etc...



Yea that's near the entire float
+9   

Top 10 most propped recently  2 months ago '22        #12
BreakkerSzn  topics gone triple plat - Number 1 spot x33
Props total: 73978 73 K  Slaps total: 42596 42 K
+1   

 2 months ago '11        #13
Sin  topics gone triple plat - Number 1 spot x55
Props total: 197716 197 K  Slaps total: 26801 26 K
deutsche bank isn't far behind
+1   

 2 months ago '05        #14
Tonero 
Props total: 13709 13 K  Slaps total: 3280 3 K
 stogz said
bespoke tranche opportunities?
Underrated post
+3   

 2 months ago '06        #15
philly337  topics gone triple plat - Number 1 spot x1
Props total: 66559 66 K  Slaps total: 18319 18 K
 OG T Gutta N said
InHey , remember how've I've been posting that conspiracy theory on Reddit about the stock market being manipulated, cellar boxing , nekkid shorts , Jeff bezos , huge crash , etc...



Yea that's near the entire float
You using an original Macintosh computer wtf
+2   

 2 months ago '17        #16
Ats  topics gone triple plat - Number 1 spot x13 OP
Props total: 36301 36 K  Slaps total: 3616 3 K
 philly337 said
You using an original Macintosh computer wtf
+2   

 2 months ago '04        #17
fantastic4our 
Props total: 2182 2 K  Slaps total: 103 103
 philly337 said
You using an original Macintosh computer wtf
That's a shot of a Bloomberg Terminal. Financial institutions and traders use them to get the most current market data.


Last edited by fantastic4our; 10-02-2022 at 09:37 PM..
+7   

 2 months ago '19        #18
Cowboy  topics gone triple plat - Number 1 spot x1
Props total: 3700 3 K  Slaps total: 577 577
 fantastic4our said
That's a shot of a Bloomberg Terminal. Financial institutions and traders use them to get the most current market data.
And to subscribe to it is $24,000 a year..lol
+8   

 2 months ago '05        #19
OG T Gutta N  topics gone triple plat - Number 1 spot x5
Props total: 15845 15 K  Slaps total: 4122 4 K
 philly337 said
You using an original Macintosh computer wtf
generational wealth gon skip right over yo a*s
+7   

 2 months ago '06        #20
philly337  topics gone triple plat - Number 1 spot x1
Props total: 66559 66 K  Slaps total: 18319 18 K
 OG T Gutta N said
generational wealth gon skip right over yo a*s
I'm fu*kin with you chief
+2   

 2 months ago '04        #21
King Ryan 
Props total: 2740 2 K  Slaps total: 749 749
the next Lehman Brothers, lot of money to be made on this upcoming market crash.
+4   

 2 months ago '19        #22
hoffa1911 
Props total: 133 133  Slaps total: 7 7
 King Ryan said
the next Lehman Brothers, lot of money to be made on this upcoming market crash.
You staying in cash right now or nibbling(DCA)?c


Last edited by hoffa1911; 10-03-2022 at 12:42 AM.. Reason: clarification

 2 months ago '05        #23
ChickzNKickz 
Props total: 35895 35 K  Slaps total: 2345 2 K

;t=Fy7MLNIikmQ0D_LvV_aclg
+2   

 2 months ago '15        #24
tr1pp1n  topics gone triple plat - Number 1 spot x1
Props total: 2626 2 K  Slaps total: 128 128
Margins gonna be callin

This might be what we all been waiting for and talking about. The first domino falling.

sh*t has been rocky but playing out like a prophecy at some points.
+1   

 2 months ago '18        #25
BrooklynDamien  topics gone triple plat - Number 1 spot x2
Props total: 85345 85 K  Slaps total: 5296 5 K
 King Ryan said
the next Lehman Brothers, lot of money to be made on this upcoming market crash.
Would be a good time to learn how to trade



Sign me up
 
 

yesterday...


most viewed right now
+115online now  34
audio inside Kanye releases snippet of new song before Instagram shuts his page down
173 comments
20 hours ago
@hiphop
most viewed right now
+50online now  23
Image(s) inside How A 28 Year Old Built a Side Hustle That Brings in $30,000 a Month
45 comments
19 hours ago
@wild'ish
most viewed right now
-34online now  22
Image(s) inside Air Jordan 11 CMFT Low "University Blue"
40 comments
18 hours ago
@gear
most viewed right now
+88online now  19
Pau Gasol has been right there for Vanessa & the kids since Kobe’s passing!
98 comments
21 hours ago
@sports
back to top
register register Follow BX @ Twitter search BX privacyprivacy