- Group has announced that it is on track with its comprehensive strategic review, which includes potential asset sales and divestitures
- Credit Suisse’s Board of Directors and Executive Board are working to build a focused and agile banking group
- Banks is systematically important to the economy and financial system
Third-quarter results of the Credit Suisse is due on October 27, 2022.
In order to restore confidence in the notes issued by the bank and solvency, Credit Suisse has announced 3 billion debt buy back.
Credit Suisse has announced a cash tender offer for senior debt securities denominated in euro/pound sterling worth up to EUR 1 billion. It is also announcing a separate offer for US dollar denominated debt securities worth up to USD 2 billion. Offers are subject to the terms and conditions outlined in the offer document, and tenure for both the offers will expire on November 3, 2022 and November 10, 2022, respectively.
Group has announced that it is on track with its comprehensive strategic review, which includes potential asset sales and divestitures. The bank is taking steps to strengthen its wealth management business and transform its Investment Banking division into a capital-light business model.
The bank is evaluating strategic options for the Securitized Products business, including attracting third-party capital and lowering the Group’s absolute cost base to less than CHF 15.5 billion.
Credit Suisse’s Board of Directors and Executive Board are working to build a focused and agile banking group with a significantly lower absolute cost base, capable of delivering sustainable returns to all stakeholders while providing first-class service to clients.
Credit Suisse Corporate Governance has been questionable. Losing Money in Greensill is one such incidence of questionable financial governance.
Greensill Capital, founded in 2011 by Lex Greensill, was a financial services firm that specialised in supply chain financing. It was based in the United Kingdom and Australia. Greensill received a $250 million investment from General Atlantic in 2018 and received a $800 million investment from Softbank Vision Fund.
Greensill relied on loans from Credit Suisse-managed specialised supply-chain investment funds. Greensill’s riskier notes were purchased by Credit Suisse investment funds. Customers of Credit Suisse invested billions of dollars in Greensill Capital. Greensill declared bankruptcy and filed for insolvency in March 2021.
Archegos Capital Management went bankrupt in March 2021, costing Credit Suisse another $5.5 billion.
Tidjane Thiam, the company’s former CEO, was forced to resign in 2020 after being caught spying on Credit Suisse’s wealth management executive Iqbal Khan.
Investors value have been eroded over the years as share prices are continually declining . During past one year period, stock prices have halved
JPMorgan analysts recently upgraded the bank’s rating.
The previously scheduled issuance of Credit Suisse Real Estate Fund Green Property has been postponed. Credit Suisse cited high volatility and deteriorating market sentiment as reasons for the postponement.
The bank is currently carrying out a number of strategic initiatives, including potential asset sales and divestitures.
The Swiss National Bank has stated that it is keeping an eye on the situation at Credit Suisse. Banks is systematically important to the economy and financial system. Credit Suisse had $735 billion in total assets at the end of June. It has reported losses of approximately $4 billion over the previous three quarters. Banks failure may have contagion impact on the European market and possibility of spill over can not be ruled as globally financial markets are deeply interconnected.
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