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Credit Suisse at critical moment

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You hit the nail on the head. Now CS⁤ is forced to do clean business they are suffering. They are not competitive, credible or⁣ competent over peers. The end of banking despots, criminals, market manipulation, deceiving customers etc may⁢ be affecting their business model adversely. Criminal Services also known as CS or its new entity CSFB (Criminal Services For Billionaires) has an uphill battle in any case.

Summary of︀ CS major fines ($12bn) over last 10 years

https://www.srf.ch/news/wirtschaft/credit-suisse-unter-druck-die-bussen-sammlerin
(You need to translate to English)︁
 

Credit Suisse slumps after flagging $1.6 billion loss​

https://finance.yahoo.com/news/credit-suisse-slumps-flagging-1-060838674.html
--- quote start

The world's high‌ net worth individuals, have pulled 10% of all the assets under management at the bank's‍ key wealth management division since the start of October, something that will cause a sharp⁠ drop in fees at the unit around which Chief Executive Ulrich Koerner hopes to rebuild⁤ the bank.

The bank said outflows had slowed "substantially" from the first two weeks of⁣ October but "have not yet reversed."

Its domestic division had also experienced a moderate withdrawal⁢ of around 1% of net assets, but that pales in comparison to the far more︀ troubling developments in Wealth Management, which had echoes of the 2008 financial crisis when investors︁ feared for the safety of their assets.

The bank noted that it had been forced︂ to dip into its liquidity reserves, briefly taking it below certain minimum thresholds demanded︃ by its regulators. However, it stressed that its liquidity coverage ratio and net stable funding︄ ratio - the two main yardsticks introduced by global regulators after 2008 to stop a︅ repeat of Lehman Brothers' collapse - were maintained at all times.

--- quote end

When a private bank suffers a run and loses 10% of AUM that's a big problem︆ indeed for a wealth manager like CS...lol. Not only do you lose fees but you︇ have to incentivize other clients not to follow - meaning you drop fees.
 
I recall once having contact with one guy from Trinidad and Tobago (FATF-blacklisted) jurisdiction who‌ posed as investment advisor with some local regulation, turned to be Ponzi-scheme runner.

He told‍ me that his CSP/lawyer made applications to several Swiss banks with his 1 mil +⁠ wealth of unclear origins. Swissquote declined him, Dukascopy declined him, even CIM Bank said "no".⁤

But guess what?

He was happily accepted by Credit Suisse
 

Credit Suisse Offers Higher Rates to Rebuild Depleted Assets​


https://www.yahoo.com/now/credit-suisse-offers-higher-rates-061238351.html
----- quote start

Credit Suisse‌ Group AG bankers are trying to entice rich clients with higher-yield notes and bonus deposit‍ rates in a bid to quickly recoup as much as possible of the almost $90⁠ billion recently pulled from the bank.

The head of the Swiss lender’s wealth unit, Francesco⁤ de Ferrari, is mobilizing his 1,800 relationship managers in a mass calling campaign with offers⁣ including a lowered threshold on balances entitled to an interest rate of 5% to 6%,⁢ according to people familiar with the matter, who asked not to be identified as the︀ plans are private. In addition, the bank is offering notes that pay a fixed rate︁ of close to 7% to compensate investors for lending their cash for a number of︂ months, the people said.

*****

Some desks have been restricted from making new loans to︃ fund clients’ leveraged investments until the next quarter due to a lower level of liquidity,︄ the people said. Those teams are being told that new loans cannot be made until︅ the client has brought back assets, paid off old loans, or promised to do new︆ business with the bank, they added.

---- quote end

Damn this bank is desperate. If︇ I got a call from a Credit Suisse relationship manager I would pull all my︈ money out the same day....smells of desperation. Why take even a 1% risk when UBS︉ is across the road 😕. The bank is also still under investigation by US.... You︊ never want to be last out the door.

Credit Suisse Faces US Tax Probe, Senate︋ Inquiry Over Accounts​

https://news.yahoo.com/credit-suisse-faces-us-tax-160456442.html
 
Lol..them days are‌ long gone. Clearly $90bn withdrawal of clients assets shows confidence is not so high 😕. Also importantly a lot has changed in Swiss banking world since UBS being bailed out‍ during 2008 crisis with new bail-in rules etc coming into play to prevent government bailouts⁠ ever being needed again. I would not want to see today what FINMA's restructuring plan⁤ is for banks of "systematic importance". The smart money just moves to another bank and⁣ asks questions later.

You can read more about is below without me having to explain⁢ it all.

https://pestalozzilaw.com/en/insigh...restructuring-procedure-and-bail-switzerland/
 

Credit Suisse breach spills personal info of high-net-worth clients​


https://nypost.com/2023/03/02/credit-suisse-breach-spills-info-of-high-net-worth-clients/
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Credit Suisse‌ , which in the last month alone has reported customers withdrew $120 billion , is‍ now informing ultra-high-net-worth individuals of yet another disaster, On the Money has learned.

The Swiss⁠ bank is telling some top clients , customers who keep $50 million or more in⁤ the bank , that sensitive personal information including social security identification, employment information, and contact⁣ details has been compromised.

Adding insult to injury, the bank told clients that it would⁢ enroll them in an identity theft protection service, Identity Works, but wouldn’t pay for other︀ fees, some as low as $20, associated with protecting their identity as a result of︁ the breach.

--- quote end
 
Who does not remember︂ the advertising of the swiss banks: their data protection has top priority and personal data︃ are exorbitantly secured against nukes & spies in the deepest bunkers of the world, without︄ connection to the outside, because only anonymous customer numbers are kept in the bank computers︅ without reference to the real persons.
 
This must be one of the last nails in the coffin for CS. For a‌ while I was positive about them bouncing back. Now not so much. At the same‍ time... How much more incompetence can you come across in one and the same organisation?⁠
 
With CS the risk is nearly zero since it's considered by FINMA one of the‌ five systemically important banks along with UBS, Raiffeisen, PostFinance and Zuercher Kantonalbank. They will never‍ let a systemically important bank fail.
 
The chance is not near zero. The Swiss government would not throw tax payer money‌ after a bad bank like how they bailed out UBS in last financial crisis. Them‍ days are long gone.

Chances are discussions have already taken place and a contingency plan⁠ is in place over how the bank will be wound down and its "swiss banking"⁤ assets transferred to likely UBS etc but its non-Swiss assets left to maybe a non-Swiss⁣ bank.

Bailing out a self inflicted loss making bank with no business direction would be⁢ very inappropriate use of taxpayer money imho.
 
When CS is forced⁠ to sell of assets they become a less part of systemic risk. Its more a⁤ matter of time until CH government withdraws that status for CS. To me it comes⁣ across as the to follow roadmap..
 
I would not make⁠ such arguments on other systematically important banks because banks will be not needed anymore for⁤ money distribution.
It will go directly from central banks.
There is a reason why big⁣ banks have been splitted in the past years into customer and investment banks

Once the final new︆ monetary system is added the debt will be paid out with physical gold.Of course golds︇ value at that time will be MUCH higher than now which most people here can't︈ imagine.
 
Clients withdrew deposits worth 51 billion Swiss francs (approx. 28%) from Credit Suisse within one‌ year , Tagesanzeiger

Credit Suisse’s top shareholder, the Saudi National Bank, rules out providing more‍ financial assistance to the struggling Swiss bank, citing regulatory issues , Bloomberg
 
Ok so seems I was absolutely correct about Credit Suisse. Here is what Finma says‌ below. The Swiss government is NOT bailing out these banks will face a bail-in eek¤%&. Works similar to EU BRRD.

https://www.finma.ch/en/enforcement/recovery-and-resolution/too-big-to-fail-and-financial-stability/banks’-recovery-and-resolution-planning/
 
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