Credit Suisse

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 ...

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As Europe faces a dark winter and a war on the continent, Credit Suisse Group AG is facing stress in the credit default swap markets.

However, Credit Suisse Group AG qualifies as a global systemically important bank (G-SIB) and is required to disclose these G-SIB indicators on an annual basis. On Friday (September 30, 2022), Credit Suisse Chief Executive Officer Ulrich Koerner tried to calm down 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 October 27, 2022. That said, 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 wrote.

Mr Ulrich Koerner reassured staff that the bank has a "strong capital base and liquidity position". Read more at straitstimes.com.

The KBW analysts were the latest to draw comparisons to the crisis of confidence that shook Deutsche Bank six years ago. While these levels are still far from distressed and are part of a broad market sell-off, they signify deteriorating perceptions of creditworthiness for the scandal-hit bank in the current environment. Deutsche Bank saw its credit-default swaps climb, its debt rating downgraded and some clients step back from working with it. The firm's 2021 annual report said its international regulatory minimum ratio was 8 per cent, while Swiss authorities required a higher level of about 10 per cent. Credit Suisse's market capitalisation dropped to around 10 billion Swiss francs, meaning any share sale would be highly dilutive to long-time holders. Mr Koerner's memo was the second straight Friday missive as speculation over the beleaguered bank's future increases.

Credit Suisse is in the throes of what is expected to be a major restructuring of the investment bank as Koerner seeks to return the lender to profitability ...

While conceding that there is a lot of uncertainty and speculation both within and outside the bank, the CEO said he will be sending a regular update to staff until the results of its strategic review on Oct. 27, according to the memo, seen by Bloomberg and confirmed by a Credit Suisse spokesperson.Koerner asked staff to remain disciplined and close to clients despite all the media attention the bank is receiving. Credit Suisse is in the throes of what is expected to be a major restructuring of the investment bank as Koerner seeks to return the lender to profitability and put an end to a string of scandals.

The Swiss banking giant is embroiled in a succession of financial scandals that now threaten its future.

At the beginning of 2021, Credit Suisse asked Archegos to deposit funds. But in March 2021, ViacomCBS shares crashed and the banks asked Archegos to cover the losses, which it was no longer able to do. Founded in 2011, the British company is a The second scandal in the spring of 2021 involved family office Archegos Capital Management. It then packages the debts of these companies into financial securities which it resells to investors. "We are in the process of reshaping Credit Suisse for a long-term, sustainable future - with significant potential for value creation," Körner added. A negative outcome is likely to cause a shock similar to that caused by the bankruptcy of the U.S. It is a real nightmare for the bank which had succeeded in weathering the financial crisis without losing too many feathers. The bank has not yet renewed the contracts of certain contractors. 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. This event triggered one of the most serious financial and economic crises since the Great Depression. 2 Swiss bank and one of the largest banks in the world is in deep trouble and is currently fighting for its survival.

CREDIT Suisse Group's new chief has asked investors for less than 100 days to deliver a new turnaround strategy. Turbulent markets are making that feel like ...

The price of its credit default swaps, which investors buy to protect themselves from companies defaulting on their debts, leapt to their highest value since ...

Boaz Weinstein, the founder of Saba Capital Management pointed out that Credit Suisse's CDS prices are similar to that of General Motors, with no similar concerns raised about the car maker. Deutsche Bank credit default swaps have also risen in recent days, with some analysts raising similar questions about the financial strength of the German bank. [ in the collapse of Greensill Capital,](https://www.telegraph.co.uk/politics/2021/05/13/david-cameron-lex-greensill-scandal-lobbying-independent-investigation/) the controversial finance company that was advised by former Prime Minister David Cameron and failed in March 2021. However, it is understood that the Bank is satisfied that there have been no major recent developments and that speculation was driven by Mr Koerner’s statement. The lender employs around 6,000 people in the City of London and manage almost £1.4 trillion of assets. Rather than reassure, his statement rattled investors following a week in which the run on pension fund assets triggered by Kwasi Kwarteng’s mini-Budget drew comparisons with the financial crisis of 2008 and the collapse of Northern Rock, and the Wall Street investment bank Lehman Brothers.

Senior Credit Suisse executives spent the weekend reassuring large clients, counterparties and investors about the Swiss bank's liquidity and capital ...

The chief of beleaguered lender Credit Suisse has stepped into to soothe staff concerns over the financial stability of the bank, as it prepares to public a ...

Credit Suisse was reportedly sounding out investors for fresh cash last week as it attempts a radical overhaul of its investment bank. It has since been hit by losses this year amid a slowdown in its investment banking unit as capital markets activity remains subdued. investment firm Archegos Capital led to a $5.5bn hit, and $10bn of supply chain finance funds (SCFF) linked to collapsed British financier Greensill were shuttered.

When trading resumes on Monday morning, financial markets across the globe will have one question in mind – what next for Credit Suisse?

While the fear of a collapse appears to be in the realm of rumour and speculation, the markets will keenly watch the Oct. Markets are coming to terms with Fed’s aggressive rate hike and Bank of England’s emergency measure to stave off a monetary crisis triggered by the new Truss government. The issue was brought back to limelight after Credit Suisse’s CEO Ulrich Koerner tried to calm the nerves in a note to its employees.

Junior bankers and traders who are either already at Credit Suisse or who hold offers to join Credit Suisse next year can come out of their safe spaces.

The "scaremongering" around Credit Suisse is "gross", says Weinstein in another tweet. At the very least, this weekend's events are likely to make the bank more mindful of capital conservation and less inclined to sustain a large and capital- hungry investment bank. [[email protected]](mailto:[email protected]) in the first instance. "It's BS," says one of the weekend panic. Credit Suisse may not be a good business, but that doesn't mean it's also very risky, he adds. Credit Suisse may be the "worst big bank in Europe" but it's not about to go under, said one. [Financial Times ](https://www.ft.com/content/c62bea1f-2929-4473-838d-665dc6c45f83)says Credit Suisse has spent the weekend reassuring investors that all is fine. "Credit Suisse has been de-risking and now has one of the safest balance sheets in the market. Is General Motors also on the bring of failing? Fortunately, Credit Suisse itself isn't the only one offering reassurance. Where did the rumour of Credit Suisse's imminent demise come from? So say some of the most knowledgeable figures in the industry, many of whom actually did witness several banks going under in 2008.

It's been more than a decade since the financial crisis in 2007-2008 when Lehman Brothers, the fourth largest investment bank in the U.S., collapsed and ...

“Because anyone who fully trusts their accounting also believes in unicorns and the tooth fairy.” At the time of writing, the term “Credit Suisse” is a very [popular vertical trend](https://twitter.com/search?q=%22Credit%20Suisse%22&src=trend_click&vertical=trends) on Twitter on Sunday morning (ET) with 46,000 tweets. Some have criticized the banks’ auditing process as they believe Credit Suisse and Deutsche Bank are [Bitcoin.com](https://bitcoin.com) does not provide investment, tax, legal, or accounting advice. “Credit Suisse is probably going bankrupt,” the Twitter account ‘Wall Street Silver’ Disclaimer: This article is for informational purposes only. Furthermore, Credit Suisse’s credit default insurance (CDS) levels resemble the same CDS levels Lehman Brothers had just before the bank’s bankruptcy. The author adds It’s been more than a decade since the financial crisis in 2007-2008 when Lehman Brothers, the fourth largest investment bank in the U.S., collapsed and filed bankruptcy. “From $14.90 in Feb 2021, to $3.90 currently. In my little experience- A black swan event never announces itself.” [analysis](https://seekingalpha.com/article/4544195-credit-suisse-deutsche-bank-at-distressed-valuations-which-to-avoid) of the situation published on Seeking Alpha also notes that both Credit Suisse and Deutsche Bank are trading at distressed valuations and further says that Credit Suisse “will have to go through a painful restructure.” The Seeking Alpha author writes that “[Credit Suisse] is trading at 0.23x tangible book [and] Deutsche Bank is trading at 0.3x tangible book value.” However, the Seeking Alpha author says that Deutsche Bank is working through the storm via benefits from interest rates. “In Every correction – this speculation starts coming.

Both CS and DB are trading at distressed valuation. CS will have to go through a painful restructure. Read more here.

In the interim, I expect the bleeding to continue, including the departure of key staff to competitors. The investment bank is focused on the bread and butter of trading income comprising FX, rates, and credit trading. Negative rates settings completely disrupt the maturity transformation business model of deposit-taking institutions and are a key reason for the decade-long underperformance of European banks compared to their U.S. I expect there will be a capital call soon - there is no real way of restructuring the investment bank without raising equity. DB has completely exited the Equities trading business and therefore has managed to side-step some of the risks the likes of CS have faced. The problem is that restructuring an investment bank is a long, protracted, risky, and costly exercise. As such, the investment bank looks like it is sustainably earning its cost of capital as well as continuing to take market share. CS is expected to deliver its strategy update on the 27th of October. It is on a credible path to earning greater than 10% RoTCE by 2025, powered by strong tailwinds from the paradigm shift in the interest rates settings in the Eurozone. It also has a low-risk business model, which means it is likely to side-step the type of banana peels CS has stepped on. There appear to be major risk management matters plaguing its investment bank and fixing these will likely be a protracted and costly process. Deutsche Bank (NYSE: [DB](https://seekingalpha.com/symbol/DB)) is trading at 0.3x tangible book value.

Credit Suisse executives spent the weekend reassuring large clients, counterparties and investors about its liquidity and capital position, the Financial ...

Register now for FREE unlimited access to Reuters.com A spokesman for Credit Suisse declined to comment on the report when contacted by Reuters.

Welcome to Charts and Caffeine - Livewire's pre-market open news and analysis wrap. We'll get you across the overnight session and share our best insights ...

[ASX: NCM](/stock_codes/asx-ncm)) and Northern Star ( [ASX: NST](/stock_codes/asx-nst)). Written by Hans Lee (Mondays - Thursdays) and Chris Conway (Fridays). [Chris Conway](https://www.livewiremarkets.com/contributors/chris-conway-4adcdb2d-4420-4352-a849-19d20ded0144) wrote today's report. The reason why this chart is important is that earnings revisions from analysts typically lead earnings-per-share (EPS) trends, and EPS trends typically lead share prices. Morgan Stanley have run the ruler over the miners, in light of what's going on in China. Analysts see earnings contracting and lower their EPS forecasts, earnings per share ultimately contract in the economic environment, and share prices tank as the end result. Welcome to Charts and Caffeine - Livewire's pre-market open news and analysis wrap. The Citi research notes that if the global economy is reaching stall speed, as many expects that it is, then EPS expectations must fall and signal contraction in 2023. There has been plenty of movement around Credit Suisse over the weekend. These CDS offer protection against Credit Suisse defaulting. Some analysts are saying it won't be enough, however. - NASDAQ - 10575 (-1.51%)

The management of Credit Suisse Real Estate Fund Green Property has postponed a capital increase announced for the fourth quarter, citing high volatility ...

"The fund management will closely monitor the development of the market and will decide in due course on a possible implementation of the capital increase for Credit Suisse Real Estate Fund Green Property," it added. [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) said on Monday a successful issue in the fourth quarter could not be guaranteed. [(GREEN.S)](https://www.reuters.com/companies/GREEN.S) has postponed a capital increase announced for the fourth quarter, citing high volatility for property funds and a market environment which has deteriorated significantly.

Some of the most intense speculation has surrounded the future for large financial institutions Credit Suisse and Deutsche Bank, with both attracting market ...

“The euro area and the UK are in recession, China is in a growth recession, and the US is flirting with recession.” The attention on Credit Suisse and Deutsche is understandable given the dramatic intervention by the Bank of England in the UK bond market. The Bank of England was forced to intervene because lending for housing was starting to be hit and the rising yields had caused a potential crisis in the UK pension fund sector. However, other traders think the pessimism has been overdone and have rated Deutsche Bank as a buy and remain confident that Credit Suisse and its strong and valuable banking and wealth management platforms will provide enough of a buffer to allow it to rescue and restructure its poorly performing investment bank. The speculation saw Credit Suisse chief executive officer Ulrich Koerner last week reassure investors and staff – admitting that the bank is facing a “critical moment” but stressing that the Swiss-based financial institution has a “strong capital base and liquidity position.” You know things are getting serious when the Bank of England is forced to step in and buy bonds because the country’s entire defined benefit pensions system is put in danger because of rocketing bond yields.

Over the weekend, several media outlets reported that Credit Suisse sought to assuage investors' concerns over its financial health.

"Something is going to break." "I think the Federal Reserve is going to have to face the consequences of a credit event" if it were to occur, Komal Sri-Kumar told CNBC's "Squawk Box Asia" on Monday. - "I think the Federal Reserve is going to have to face the consequences of a credit event" if it were to occur, Komal Sri-Kumar told CNBC's "Squawk Box Asia" on Monday.

Ulrich Körner says he is 'confident we have what it takes to succeed' and tells staff coverage of bank's crisis contains 'inaccurate statements'

The swaps began the year costing 0.57%. [Suisse secrets investigation](https://www.theguardian.com/news/series/suisse-secrets), conducted by a consortium including the Guardian, [exposed](https://www.theguardian.com/news/2022/feb/20/credit-suisse-secrets-leak-unmasks-criminals-fraudsters-corrupt-politicians) the hidden wealth of clients involved in torture, drug trafficking, money laundering, corruption and other serious crimes. The bank plunged from a profit of 2.7bn francs (£2.47bn) in 2020 to a loss of 1.65bn francs (£1.51bn) last year, driven mostly by big losses on its investments in failed supply chain finance group Shares were down 9% on Monday morning. [job cuts](https://www.theguardian.com/business/2022/sep/02/credit-suisse-weighs-up-5000-job-cuts-restructuring-plan), selling assets and asking investors for a fresh infusion of cash, on 27 October. [Credit Suisse](https://www.theguardian.com/business/creditsuisse) has attempted to reassure staff the globally significant Swiss bank has a solid balance sheet after credit markets rated its risk of default as the highest in a decade.

Shares in Credit Suisse fell by about 10% in early trading, reflecting market concern about the Swiss bank as it finalises a restructuring due to be ...

Deutsche Bank analysts in August estimated a capital shortfall of at least 4 billion francs. Given the uncertainties, the bank's financing costs have surged. [read more](/business/finance/exclusive-credit-suisse-sounds-out-investors-about-capital-hike-sources-2022-09-22/) [read more](/business/finance/credit-suisse-posts-bigger-than-expected-q2-loss-2022-07-27/) [read more](/business/finance/credit-suisse-executives-reassure-investors-after-cds-spike-ft-2022-10-02/) [read more](/business/finance/credit-suisse-has-strong-capital-base-liquidity-ceo-memo-2022-09-30/)

The shares dropped as much as 12 per cent in Zurich trading on Monday to 3.52 francs. Read more at straitstimes.com.

Last week, Credit Suisse said it is working on possible asset and business sales as part of its strategic plan which will be unveiled at the end of October. Still, what the bank called a "vicious circle" of declining revenue and rising funding costs took years to reverse. The lender is currently finalising 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. The cost of insuring the firm's bonds against default climbed about 15 per cent last week to levels not seen since 2009. He also told employees that he will be sending them a regular update until the firm announces the new strategic plan on Oct 27 because of the speculation surrounding the lender. 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.

CREDIT Suisse Group's gauge of credit risk rose to a record high, while its stock hit a fresh low, adding to the turmoil after the bank's attempts to ...

Then, there's the fact that the risk of Credit Suisse defaulting (as measured by the cost of insuring against it defaulting), has gone through the roof and is ...

](https://www.efinancialcareers.co.uk/login/register?cm_sp=editorial_registration) [ predicted in March](https://www.efinancialcareers.co.uk/news/2022/03/barclays-clawbacks-etns#:~:text=In%20its%20pillar%203%20report,their%20business%20unit%2C%20%22suffers%20a), Barclays will be clawing back some of the bonuses it paid last year. [[email protected]](mailto:[email protected]) in the first instance. Eventually it will – unless it’s offensive or libelous (in which case it won’t.) [(WSJ)](https://www.wsj.com/articles/macro-hedge-funds-turn-in-banner-year-in-volatile-market-11664530202?mod=markets_lead_pos4) [Click here to create a profile on eFinancialCareers. [unlikely to be Lehman](https://www.efinancialcareers.co.uk/news/2022/10/credit-suisse-the-next-lehman) (in the sense that it’s unlikely to go spectacularly and suddenly bankrupt), it is, however, likely to come out of this period in a very different shape to when it went in. The banks/hedge funds it's negotiating with aren't known for their charity and won't be inclined to cut a generous deal to a counterparty clearly in desperate need of a sale. [on Sunday](https://www.efinancialcareers.co.uk/news/2022/10/credit-suisse-the-next-lehman)), the catalyst for Credit Suisse’s new self seems to have been CEO Ulrich Koerner’s [memo to staff](https://www.reuters.com/business/finance/credit-suisse-has-strong-capital-base-liquidity-ceo-memo-2022-09-30/) on Friday that all is fine at Credit Suisse in terms of liquidity and capital. And many of those who like panicking (Redditors, Twitter pundits), are. it's basically a pile of high carry low duration levfin and securitisation, tiny in rates, small in mortgages— Owen Sanderson (@OwenPSanderson) This, as has been amply observed on Twitter and [other European banks](https://www.derivateverband.de/DEU/Transparenz/Credit-Default-Swaps). Markets price default probability at 20%.— Holger Zschaepitz (@Schuldensuehner)

Swiss bank fails to calm concerns as cost of buying its credit default swaps soars.

Euro-denominated bonds issued by Credit Suisse dropped to record lows on Monday, reflecting about the Swiss bank as it finalises a restructuring programme ...

The 2032 issue lost more than 7 cents to dip below 70 cents in the euro before retracing some losses to trade at 71.8 cents, Tradeweb data showed. Register now for FREE unlimited access to Reuters.com [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) shares slid by as much as 10% on Monday. Credit default swaps (CDS) for Credit Suisse - instruments used to insure exposure to the lender's debt - stood at 250 basis points (bps) on Monday - a sharp increase from the 57 bps at the start of the year, data from S&P Global Market Intelligence showed. According to the bank's second quarter financial report, Credit Suisse had outstanding long-term debt of 158 billion Swiss francs ($160 billion), including senior and subordinate instruments. [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) dropped to record lows on Monday, reflecting [market concern](/business/finance/credit-suisse-fall-around-10-early-trading-2022-10-03/) about the Swiss bank as it finalises a restructuring programme due to be announced on Oct.

Credit Suisse Group AG was plunged into fresh market turmoil after Chief Executive Officer Ulrich Koerner's attempts to reassure employees and investors ...

Shares of Credit Suisse touched fresh lows last week. The stock is down about 55% year-to-date. Spreads of the bank's credit default swaps (CDS), ...

[Reuters](https://www.reuters.com/business/finance/exclusive-credit-suisse-sounds-out-investors-about-capital-hike-sources-2022-09-22/) that it's in the process of a strategy review that includes potential divestitures and asset sales, and that [an announcement is expected on Oct. "The silver lining at end of this period is the fact that central banks will probably start to relent some time as both inflation is down and financial conditions worsen dramatically," Vail said. The analysts did not name Credit Suisse. banks by "a large European bank." Federal Reserve's direction, said John Vail, chief global strategist at Nikko Asset Management, on CNBC's " [Credit Suisse](https://www.cnbc.com/quotes/CSX1-FF?qsearchterm=credit%20suisse%20group) plunged nearly 10% in Europe's morning session, after the [Financial Times](https://www.ft.com/content/c62bea1f-2929-4473-838d-665dc6c45f83?accessToken=zwAAAYObu1TpkdPGK-ofKSlEc9ODjWZdxsRfgw.MEYCIQDfPV6GcLrEj_ixpAHacA-FSmvksvSLJ8OTx62_b6_UAgIhAIsfAG9edZGzQbKVh2FXoGL4Mm786qKFlbePH6UWFxaS&sharetype=gift&token=bd0f4699-bd56-411e-b13a-f68bc419914c) reported the Swiss bank's executives are in talks with its major investors to reassure them amid rising concerns over the Swiss lender's financial health.

Shares of Credit Suisse plunged to an all-time low Monday as investors traded on concerns about the Swiss banking giant's financial health and management's ...

The bank [installed](https://www.forbes.com/sites/roberthart/2022/07/27/credit-suisse-replaces-ceo-after-17-billion-loss/?sh=40f4303d237b) Körner as its top executive in July after the bank missed on earnings, and Credit Suisse has been marred in recent by billions of dollars in losses from financial penalties and the [collapse](https://www.forbes.com/sites/isabeltogoh/2021/11/04/credit-suisse-burned-by-archegos-and-greensill-scandals-shifts-focus-to-wealth-management-in-overhaul/?sh=31b627db2488) of asset manager Archegos and financial services firm Greensill. [Credit Suisse is fending off concerns about its financial health, fanning fears of another Lehman Brothers moment that could roil the global financial system. [according](https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/the-world-s-100-largest-banks-2022-69651785) to S&P Global Market Intelligence. Though concerns are not as stark about Deutsche Bank as with Credit Suisse, shares of the German bank are down 42% year-to date. Deutsche Bank’s credit risk Here's what's happening, and what it means.](https://www.businessinsider.com/credit-suisse-lehman-brothers-stock-price-cds-banks-financial-system-2022-10) (Insider) [Credit Suisse reassures investors over its financial strength](https://www.ft.com/content/c62bea1f-2929-4473-838d-665dc6c45f83) (Financial Times) [surged in 2016](https://www.cnbc.com/2016/09/28/deutsche-bank-crisis-explained.html) over concerns about the bank’s liquidity. [deleted](https://www.afr.com/markets/equity-markets/abc-reporter-deletes-tweet-claiming-investment-bank-on-the-brink-20221003-p5bmvy) the tweet Monday, but not before it went viral and was linked to Credit Suisse and Germany’s Deutsche Bank, while [several](https://twitter.com/GrahamStephan/status/1576601663477059585?s=20&t=oba1BnqOnoTtUKAWchUN9w) [other](https://twitter.com/Debit_Suisse/status/1576570369481543681?s=20&t=oba1BnqOnoTtUKAWchUN9w) [tweets](https://twitter.com/TheCryptoLark/status/1576660051728560128?s=20&t=oba1BnqOnoTtUKAWchUN9w) playing up comparisons between Lehman and the European banks racked up tens of thousands of likes on Twitter. Credit Suisse has $100 billion available to cover any losses, [according](https://www.nytimes.com/2022/10/03/business/dealbook/credit-suisse-share-fall-turnaround.html) to talking points sent to executives viewed by the New York Times, and the memo said, “Speculating that we have a liquidity issue simply would be completely false.” [how much](https://www.credit-suisse.com/about-us/en/investor-relations/corporate-and-share-information/corporate-information/key-metrics-tables.html) assets Credit Suisse managed as of the end of the second quarter of 2022, compared to Lehman Brothers’ over $600 billion in assets when it filed for bankruptcy September 15, 2008, plunging the stock market. [reported](https://www.ft.com/content/c62bea1f-2929-4473-838d-665dc6c45f83) Monday the bank’s top executives called clients over the weekend to calm doubts about the bank’s financial position. Credit Suisse shares fell to an all-time low of $3.70 Monday in New York and fell 5% in Zurich as investor confidence in the Swiss banking giant continues to fall as its capital position is being questioned after months of falling profits.

Senior executives at the bank reached out to clients and investors after its five-year credit default swaps surged to 247bps, the highest in 10 years.