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☆ Factbox: Credit Suisse's troubles - spies, money laundering and takeover
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +6 min

Credit Suisse has said it expects the case, which it is appealing, to cost it around $600 million. The hedge fund's highly leveraged bets on certain technology stocks backfired and the value of its portfolio with Credit Suisse plummeted. Swiss regulators have rebuked Credit Suisse for "serious" failings in its handling of the multi-billion dollar business with Greensill. Switzerland's financial regulator said Credit Suisse had misled it about the scale of the spying. In response, Credit Suisse said it condemned the spying and had taken "decisive" steps to improve its governance and strengthen compliance.

☆ Jamie Dimon throws Staley off fortress battlements
▼ + stars: | 2023-03-09 | by ( Neil Unmack | ) www.reuters.com time to read: +4 min

Suing former employees – in this case using an archaic-sounding doctrine that brands Staley a “faithless servant” – isn't a great look, but the bank led by Jamie Dimon has more reasons than most to defend itself. His $400 billion firm is being pursued for unspecified damages by a woman who argues that it knew of Epstein’s sex trafficking venture, and is also being sued by the government of the U.S. Virgin Islands. The bank has delivered a more than 400% total return to shareholders since Dimon took over in 2006, while talking up its “fortress” balance sheet. If JPMorgan loses either of the lawsuits in which it is a defendant, it wants Staley to share in the damages. Current or future employees might worry they too could find themselves branded a faithless servant for failing to disclose moral missteps, or having clients who fall from grace.

☆ Jamie Dimon throws Jes Staley off the battlements
▼ + stars: | 2023-03-09 | by ( Neil Unmack | ) www.reuters.com time to read: +4 min

Suing former employees – in this case using an archaic-sounding doctrine that brands Staley a “faithless servant” – isn't a great look, but the bank led by Jamie Dimon has more reasons than most to defend itself. His $400 billion firm is being pursued for unspecified damages by a woman who argues that it knew of Epstein’s sex trafficking venture, and is also being sued by the government of the U.S. Virgin Islands. If JPMorgan loses either of the lawsuits in which it is a defendant, it wants Staley to share in the damages. Current or future employees might worry they too could find themselves branded a faithless servant for failing to disclose moral missteps, or having clients who fall from grace. CONTEXT NEWSJPMorgan on March 8 filed a complaint against former executive James “Jes” Staley, for not disclosing his relations with former client and sex offender Jeffrey Epstein.

☆ Swiss Bank UBS gave its CEO an 11% pay hike in 2022, but it cut employees' bonus pool by 10%
▼ + stars: | 2023-03-07 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

UBS gave CEO Ralph Hamers an 11% pay hike in 2022, taking his pay to $13 million. But the Swiss bank cut the bonus pool for its employees by 10% to $3.3 billion. The Zurich-based lender awarded CEO Ralph Hamers 12.2 million Swiss francs, or $13 million, for 2022, according to UBS' annual report published on Monday. His paycheck includes a base salary of 2.5 million francs and a performance award of 9.7 million francs. UBS shares closed 0.3% higher at 20.74 Swiss francs apiece on Monday.

☆ Morgan Stanley is cooperating with U.S. regulators on block-trading probe
▼ + stars: | 2023-02-24 | by ( Saeed Azhar | ) www.reuters.com time to read: +2 min

Feb 24 (Reuters) - Morgan Stanley (MS.N) said it was cooperating with U.S. regulators over investigations into its block-trading practices and providing authorities with information, according to a filingon Friday. The Wall Street firm added it could face civil claims from market participants who said they were harmed by the company's practices. Morgan Stanley said it has been responding to subpoenas and other requests for information from the U.S. Attorney's Office for the Southern District of New York and the enforcement division of the Securities and Exchange Commission. On Feb. 6, a New York state judge refused to dismiss a proposed class action against Morgan Stanley and other underwriters that helped the media company Viacom Inc sell $2.7 billion of stock in March 2021. Archegos collapsed in March 2021 after failing to meet margin calls on swaps on Viacom CBS and other stocks.

☆ Goldman expects $2.3 bln more in potential losses from legal disputes
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: 1 min

Feb 24 (Reuters) - Goldman Sachs Group Inc (GS.N) is expecting potential losses from legal proceedings to be up to $2.3 billion more than the reserves it had set aside for such matters as of last year, the investment bank said on Friday. In 2021, the bank was expecting the likely losses to be $2 billion higher than the reserves. Goldman has been targeted with lawsuits ranging from the bank's role in Malaysia's 1MDB sovereign wealth fund scandal to the collapse of Archegos Capital Management in 2021. A long-running gender bias lawsuit alleging widespread bias against women in pay and promotions at the Wall Street bank is also expected to head to trial later this year. Reporting by Niket Nishant in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ Credit Suisse posts biggest loss since 2008
▼ + stars: | 2023-02-09 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

London CNN —Credit Suisse (CS) has reported its biggest annual loss since the financial crisis in 2008, highlighting the scale of the challenge facing the scandal-plagued Swiss bank as it attempts a turnaround. The lender on Thursday posted a loss of 1.4 billion Swiss francs ($1.5 billion) in the fourth quarter of 2022, extending a losing streak that started in 2021 and taking its full-year loss to 7.3 billion Swiss francs ($7.9 billion). In 2008, Credit Suisse made a loss of 8.2 billion Swiss francs ($8.9 billion). Customers withdrew 111 billion Swiss francs ($121 billion) in the final three months of 2022, when the bank was hit by social media speculation that it was on the brink of collapse. For example, the collapse of US hedge fund Archegos Capital Management, a client of Credit Suisse, in 2021 cost the bank $5.5 billion.

NEW YORK, Jan 13 (Reuters) - The U.S. Department of Justice forcefully rejected Bill Hwang's claim that it sandbagged him by concealing its plan to charge him with fraud over the collapse of his $36 billion Archegos Capital Management LP. In a Thursday night filing in Manhattan federal court, prosecutors said there was no basis to grant Hwang's motion to dismiss his indictment because of prosecutorial misconduct prior to his April 27, 2022, arrest. "Hwang's motion is predicated on a series of inflammatory claims about the government's conduct that are entirely baseless," prosecutors said. Archegos collapsed in March 2021 after failing to meet margin calls following trades through so-called total return swaps. In a separate Thursday night filing, prosecutors rejected the defendants' claims that they committed no crimes because Archegos' trading was legal.

☆ Who will be Wall Street’s un-American idol?
▼ + stars: | 2022-12-16 | by ( John Foley | ) www.reuters.com time to read: +8 min

Europeans have been losing the battle against Wall Street’s cozy club for a decade. Deutsche Bank has done the former. BNP has made smaller steps, buying Bank of America’s prime broking business in 2008, then Deutsche Bank’s in 2019. Even with the best intentions, European banks must contend with their own regulators, which affects their ability to take risk elsewhere. JPMorgan, Bank of America, Citigroup, Morgan Stanley and Goldman Sachs together took the top five slots for debt capital markets and merger advisory, as they also did in 2021.

Now, with the fraud charges filed earlier this week against Sam Bankman-Fried, the founder of the bankrupt FTX exchange, Williams has further solidified his office's growing role in prosecuting financial crimes involving cryptocurrency, according to interviews with a half-dozen former prosecutors. Bankman-Fried, 30, has acknowledged risk management failures at FTX but said he does not believe he has criminal liability. In the wake of Bankman-Fried's arrest, Williams has made clear he would plow on with cryptocurrency enforcement. On Wednesday, he announced wire fraud conspiracy charges against the founders of two separate cryptocurrency mining and trading companies he called Ponzi schemes. On Tuesday, Williams told reporters more charges in the FTX probe were possible.

☆ Archegos' Bill Hwang says prosecutor misconduct justifies indictment's dismissal
▼ + stars: | 2022-12-03 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

NEW YORK, Dec 3 (Reuters) - Bill Hwang is seeking the dismissal of his U.S. fraud indictment over the collapse of his once-$36 billion Archegos Capital Management LP, saying prosecutors committed misconduct by sandbagging him when building their case. In a separate filing, Hwang and co-defendant Patrick Halligan, Archegos' former chief financial officer, said their indictment should be dismissed because Archegos' trading activity was "entirely lawful," using methods that are "clearly permitted by the existing regulatory structure." These discussions, the last occurring two days before Hwang's April 27 arrest, "revealed what has now become (as prosecutors doubtless knew it would) his defense strategy," Hwang's lawyers said. Hwang also wants U.S. District Judge Alvin Hellerstein, who oversees the case, to hold a hearing to determine the extent of any taint. The case is U.S. v. Hwang et al, U.S. District Court, Southern District of New York, No.

☆ Justice Department Prosecutors Swamped With Data as Cases Leave Long Digital Trails
▼ + stars: | 2022-11-28 | by ( James Fanelli | Corinne Ramey | ) www.wsj.com time to read: 1 min

U.S. Attorney for the Southern District of New York Damian Williams views the data issue as a crisis. When the U.S. attorney’s office in Manhattan brought securities-fraud charges against executives of cable operator Adelphia Communications Corp. in 2002, its case involved one million pages of evidence. In the office’s recent case against Trevor Milton , the former electric-truck executive who was convicted of fraud charges, prosecutors handed over four times that number to the defense. The numbers are even higher in a pending securities-fraud case stemming from the collapse of Archegos Capital Management LP, where prosecutors already have provided more than seven million pages of evidence to defense attorneys—after asking a court for a six-to-eight week window to produce the material.

☆ Crypto tycoon Sam Bankman-Fried lost 94% of his fortune overnight, marking the biggest one-day wealth collapse among billionaires on record
▼ + stars: | 2022-11-09 | by ( Matthew Loh | ) www.businessinsider.com time to read: +3 min

FTX CEO Sam Bankman-Fried lost 94% of his net worth on Tuesday, Bloomberg reported. That marks the biggest single-day drop in a billionaire's fortune compared to their total net worth. With Binance's acquisition of FTX, Bloomberg's wealth index now values both FTX and Alameda at $1 each, wiping out the perceived worth of Bankman-Fried's biggest holdings. Meta founder Mark Zuckerberg lost $29 billion on February 3, but his net worth was still estimated at $84.3 billion that day. Bankman-Fried's losses come in the wake of a devastating $600 billion crypto crash this year.

☆ Credit Suisse Names New Compliance Chief Amid Strategic Overhaul
▼ + stars: | 2022-10-27 | by ( Mengqi Sun | ) www.wsj.com time to read: +2 min

Credit Suisse Group AG appointed a former Goldman Sachs Group Inc. compliance executive as its new chief compliance officer, as the Swiss lender looks to move on from a period of scandals, hefty losses and executive turnover. Nita Patel, who is currently the chief compliance officer for Credit Suisse’s asset-management division and its U.K. investment bank, will become the lender’s new compliance chief and join the executive board on Nov. 1, the bank said Thursday. Ms. Patel joined Credit Suisse in May 2021 as a chief compliance officer for its international division. Newsletter Sign-up WSJ | Risk and Compliance Journal Our Morning Risk Report features insights and news on governance, risk and compliance. He will be appointed as a nonexecutive member of its board in Spain, Credit Suisse said.

☆ 4 things to know about Wall Street veteran Michael Klein, the incoming CEO of CS First Boston, Credit Suisse's spin-off of its investment bank
▼ + stars: | 2022-10-27 | by ( Carter Johnson | ) www.businessinsider.com time to read: +2 min

Michael Klein was named CEO of CS First Boston, Credit Suisse's spin-off of its investment bank. Klein is a Wall Street veteran, having spent more than two decades at Citigroup. Michael Klein, a Credit Suisse board member that helped the bank conduct its strategic review, has been tapped to take the helm at CS First Boston starting in 2023. Klein is no stranger to dealmaking on Wall Street, having spent more than two decades at Citigroup before eventually setting up his own advisory shop in 2010. Here's everything you need to know about the man tasked with reinvigorating the Swiss bank's advisory arm.

☆ Factbox: Who's in and out in Credit Suisse's day of reckoning
▼ + stars: | 2022-10-27 | by ( Pamela Barbaglia | ) www.reuters.com time to read: +5 min

Oct 27 (Reuters) - Credit Suisse's (CSGN.S) latest shake-up has led to the promotion of some senior executives to more powerful roles while others are leaving. IN:MICHAEL KLEINA former Citigroup Inc (C.N) dealmaker, Klein has been named adviser to Credit Suisse CEO Ulrich Körner. He was hired by former Credit Suisse boss Tidjane Thiam in 2017 to run equity derivatives globally. A Spanish national, Lopez Lorenzo joined Credit Suisse in 2015 from JPMorgan (JPM.N) where he was a managing director in New York. The 47-year-old banker was part of a new crop of executives who had been tasked to restore Credit Suisse's reputation after a series of scandals.

☆ Bill Hwang, Archegos demand end to SEC lawsuit over $36 bln firm's collapse
▼ + stars: | 2022-10-25 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

In court filings, Hwang and Archegos said the SEC failed to show how the New York-based firm traded deceptively or how its swaps trades, which they called "lawful," affected prices. "The SEC declares unlawful a number of practices that have long been accepted as entirely legitimate and commonplace in the market," Hwang said. Archegos imploded when it failed to meet margin calls after being caught short on trades through so-called total return swaps. Hwang and former Archegos Chief Financial Officer Patrick Halligan have pleaded not guilty to Department of Justice fraud and racketeering conspiracy charges over the collapse. The case is SEC v Hwang et al, U.S. District Court, Southern District of New York, No.

☆ Credit Suisse's investment bankers are bracing for another case of 'rinse and repeat' as they await the bank's second strategic review in a year. Insiders describe an environment of uncertainty and cy
▼ + stars: | 2022-09-27 | by ( Aaron Weinman | ) www.businessinsider.com time to read: +7 min

Investment bankers at Credit Suisse are stuck in limbo and are bracing for heavy cuts as the bank rolls out another strategic review. Among the plans reported to be under consideration are a three-way split of the investment bank, according to the Financial Times. This review of the investment banking business is Credit Suisse's second in a year. Credit Suisse will update the market when it reports third-quarter results on October 27. Bracing for changeThe investment bank was known as Credit Suisse First Boston until 2005.

☆ First Boston deserves a selective revival
▼ + stars: | 2022-09-20 | by ( John Foley | ) www.reuters.com time to read: +4 min

The logo of Swiss bank Credit Suisse is seen at an office building in Zurich, Switzerland September 2, 2022. By 2006, Credit Suisse First Boston was once again just Credit Suisse. Register now for FREE unlimited access to Reuters.com RegisterFor today’s Credit Suisse, anything that conveys renewed ambition is worth a try. First Boston was a U.S. investment bank in which Credit Suisse first bought a stake in 1978. The Swiss bank took full control in 1990 after First Boston incurred large losses on loans it had made to clients.

☆ Credit Suisse settles U.S. shareholder lawsuit over risk exposure, Archegos
▼ + stars: | 2022-09-19 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

Register now for FREE unlimited access to Reuters.com RegisterThe logo of Swiss bank Credit Suisse is seen at an office building in Zurich, Switzerland September 2, 2022. REUTERS/Arnd WiegmannNEW YORK, Sept 16 (Reuters) - Credit Suisse Group AG (CSGN.S) reached a $32.5 million settlement to resolve a lawsuit accusing the Swiss bank of misleading shareholders about how well it managed risk, including its exposure to "high-risk" clients such as Archegos Capital Management. Credit Suisse has dubbed 2022 a "transition" year as it reduces risk-taking, and installed restructuring expert Ulrich Koerner as chief executive. The case is City of St. Clair Shores Police & Fire Retirement System v Credit Suisse Group AG, U.S. District Court, Southern District of New York, No. Register now for FREE unlimited access to Reuters.com RegisterReporting by Jonathan Stempel in New York; Editing by Daniel Wallis and Cynthia OstermanOur Standards: The Thomson Reuters Trust Principles.

☆ Family offices have become a $6 trillion powerhouse in investing—and deal-making
▼ + stars: | 2022-07-11 | by ( Robert Frank | ) www.cnbc.com time to read: +11 min

Family offices now manage more than $6 trillion in wealth, according to some estimates, surpassing the estimated $4 trillion managed by hedge funds. Many billionaire hedge fund managers, seeking lighter regulation or freedom from benchmarks and outside investor demands, are also converting to family offices. Singapore recently created a Family Office Development Team to lead and coordinate initiatives that will attract more family offices. The Wealth Management Institute has launched the Global-Asia Family Office Circle in Singapore to attract more family offices. Even family offices that serve more than one family often receive an exemption from the SEC to keep their filings confidential.

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