Credit Suisse Group AG’s top shareholder, whose stake has lost more than one-third of its value in three months, ruled out investing any more in the troubled Swiss bank as a bigger holding would bring additional regulatory hurdles. “The answer is absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory,” Saudi National Bank Chairman Ammar Al Khudairy said in an interview with Bloomberg TV on Wednesday. That was in response to a question on whether the bank was open to further injections if there was another call for additional liquidity. Credit Suisse fell as much as 18% to a new record low in Zurich, while the cost to insure the bonds against default in the near term approached a level typically signaling serious investor concerns. The bank is just months into a complicated turnaround plan that will see the Swiss firm spin out the investment banking unit while focusing on its key wealth management business. That effort risks being complicated by market unease across financials after the collapse of multiple US regional banks. Chief Executive Officer Ulrich Koerner on Tuesday said the bank’s financial position is sound, including a so-called liquidity coverage ratio, which it can draw on to fulfill its obligations, of about 150%. He said that the firm saw inflows on Monday amid the market turmoil and is ahead of schedule on its turnaround plan. “Nobody is pleased by the share price development, but we manage what we can manage, and this is the execution of our plan,” Koerner said in a Bloomberg Television interview. Saudi National Bank, which is 37% owned by the kingdom’s sovereign wealth fund, became Credit Suisse’s biggest shareholder late last year after acquiring a 9.9% stake in the Swiss lender for 1.4 billion francs. The stake has lost more than 500 million francs in a matter of months. “If we go above 10%, all new rules kick in whether it be by our regulator or the Swiss regulator or the European regulator,” he said. “We’re not inclined to get into a new regulatory regime. I can cite five or six other reasons, but one reason is there is a glass ceiling and we’re not going to entertain going beyond it. https://www.bloomberg.com/news/arti...er-rules-out-more-assistance-to-bank-lf9gfhbr
Look at Credit Suisse. Its peak was on Apr 2007 at 77. It has been getting cheaper and cheaper and cheaper, and is approaching ZERO.
Credit Suisse collapsing will be a surprise to basically no one. I am watching what happens with LOB, CUBI, KEY, MCB. I wouldn't be shocked if any or all of those don't survive. Like most sectors, we probably have too many banks anyway. I must have 7 or 8 banks I could open a checking account with locally that all offer essentially the same exact product.
A number of people have been predicting the collapse of Credit Suisse in recent days. ‘Rich Dad’ Investor Robert Kiyosaki Predicts Credit Suisse Will Fail After SVB A decline in bond prices contributed to Silicon Valley Bank's collapse. A similar disaster could hit Credit Suisse next, said Robert Kiyosaki. https://observer.com/2023/03/rich-dad-investor-robert-kiyosaki-predicts-next-bank-fail-svb/ Credit Suisse Finds ‘Material’ Control Lapses After SEC Prompt Bank’s accountant issues “adverse opinion” on internal control Chairman takes pay cut, Executive Board forego bonuses https://www.bloomberg.com/news/arti...ial-weakness-in-financial-reporting#xj4y7vzkg
In regard to SVB- To play so careless with other people's money, and then pay themselves their bonuses for taking such insane risk... why the fuck is the public allowing these risk-takers to get off the hook? (and rewarded for it)? It's not just contagion we have to worry about. It's the god damned moral hazard now. Thanks Biden!
ie Robert Kiyosaki should be very rich by now. I doubt the CS accountant is allowed to short the CS shares. Too bad he could not profit from the crisis.
Still waiting to see if it crosses the Great Wall of China.... To he contagion is being dispersed well and issue are being resolved in a predictable manner. Akuma to Tenshi