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☆ Top UBS executives defend their 'emergency rescue' of Credit Suisse. Here's what comes next.
▼ + stars: | 2023-03-19 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +5 min

UBS sought to reassure investors that the Credit Suisse deal wouldn't disrupt long-term strategy. UBS agreed to acquire Credit Suisse on Sunday in a deal arranged by the Swiss government. Credit Suisse has faced crisis after crisis in recent years, from Archegos to a spying scandal. "These events could alter the course of not only European banking but also the wealth management industry more generally," Georgiou said. "It's an outcome that we may not have hoped for," Hamers said of the Credit Suisse deal.

☆ My small Christian college on Wall Street is on the brink of going under. It had it coming.
▼ + stars: | 2023-03-18 | by ( Paige Hagy | ) www.businessinsider.com time to read: +8 min

I just graduated from a Christian college on Wall Street, and it's on the verge of going under. The King's College is a tiny, private liberal arts school located in New York City's Financial District. And as an Asian woman who grew up in white, conservative Christian spaces, I didn't feel out of place in a student body that was predominantly white. 'Don't just go to college, come to King's'So how does a small, Christian school end up in the heart of the country's largest city? The King's CollegeThere are two kinds of King's students: those who just go to King's and those who are "King's people."

☆ This fund manager shorted Credit Suisse — and he's sticking with his bet
▼ + stars: | 2023-03-18 | by ( Ganesh Rao | ) www.cnbc.com time to read: +5 min

Barry Norris, fund manager at Argonaut Capital, said Saturday morning that he still expects Credit Suisse 's stock to become worthless. "If this happens we would expect [Credit Suisse] equity holders to get zero, deposit holders guaranteed and probably but not certain that bond holders will be made whole." Norris' Argonaut Absolute Return Fund fund delivered 11.3% in returns last year amid a year of losses for the broader stock market. Credit Suisse has had tumultuous few years, battling various scandals and controversies . Credit Suisse had invested heavily in Greensill and marketed its funds to clients, but the firm collapsed in 2021, leaving Credit Suisse and its customers with $1.7 billion in losses and reputational damage.

☆ BlackRock denies report that it's preparing a takeover bid for Credit Suisse
▼ + stars: | 2023-03-18 | by ( Katrina Bishop | ) www.cnbc.com time to read: +2 min

BlackRock headquarters in New York, US, on Friday, Jan. 13, 2023. via Getty ImagesBlackRock has denied a report that it is preparing a takeover bid for embattled Swiss lender Credit Suisse . "BlackRock is not participating in any plans to acquire all or any part of Credit Suisse, and has no interest in doing so," a company spokesperson told CNBC Saturday morning. Its future looks to be hanging in the balance after a multibillion-dollar lifeline offered by the Swiss central bank last week failed to calm investors. Credit Suisse was already in the midst of a massive strategic overhaul aimed at restoring stability and profitability. The default at hedge fund Archegos Capital not long after led to another $5.5 billion loss for the Swiss investment bank.

☆ U.S. poised to tighten reporting rules on $20 tln private fund sector
▼ + stars: | 2023-03-17 | by ( Douglas Gillison | ) www.reuters.com time to read: +3 min

March 17 (Reuters) - Wall Street's top regulator is set to adopt new rules aimed at bolstering oversight of systemic risk in the burgeoning, multitrillion-dollar world of private equity and hedge-funds. As proposed in January 2022, the rule would require reporting of such events to the SEC within one business day. The agency billed the new rule in part as a means of supporting the Financial Stability Oversight Council, a multi-agency risk-monitoring body also created under Dodd-Frank. The proposal offered "scant evidence" that it would enhance FSOC's monitoring for systemic risk, she said in dissenting remarks against the proposal, adding that it would likely become a tool "for government to micromanage private fund risk management." Reporting by Douglas Gillison; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.

Executives will run through the numbers and formulate scenarios that might reshape Credit Suisse's future, the sources added. Credit Suisse declined to comment. Among possible scenarios, analysts, bankers and investors speculate that Credit Suisse could sell or wind down some of its existing businesses with a break-up potentially on the cards. The sell-off in Credit Suisse's shares began in 2021, triggered by losses associated with the collapse of investment fund Archegos and Greensill Capital. In December, Credit Suisse had tapped investors for 4 billion Swiss francs.

☆ From spying to Swiss bailout: How years of turbulence at Credit Suisse came to a head
▼ + stars: | 2023-03-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

The logo of Swiss bank Credit Suisse is seen at an office building in Zurich, Switzerland February 21, 2022. The announcement that Credit Suisse would borrow up to 50 billion Swiss francs ($54 billion) from the central bank came after consecutive sessions of steep drops in its share price. It made Credit Suisse the first major bank to receive such an intervention since the 2008 Global Financial Crisis. Scandals Credit Suisse is currently undergoing a massive strategic overhaul in a bid to address these chronic issues. These oversight failures resulted in a massive shakeup of Credit Suisse's investment banking, risk and compliance and asset management divisions.

A Credit Suisse Group AG office building is seen in Bern, Switzerland, on Wednesday. In October, social media chatter that the Swiss bank was on the brink of going bust sent shares on a wild ride. Credit Suisse has since embarked on a massive turnaround plan that will see it slash 9,000 full-time jobs by the end of 2025. It lost 7.3 billion Swiss francs ($7.9 billion) in 2022, compared to a loss of 8.2 billion Swiss francs ($8.9 billion) in 2008. Investors sent shares in the country’s second biggest lender crashing by as much as 30% Wednesday.

☆ Credit Suisse: Why it’s struggling and why that’s a big deal
▼ + stars: | 2023-03-16 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +5 min

Credit Suisse is one of the biggest financial institutions in the world. “Credit Suisse is much more globally interconnected … not just a Swiss problem but a global one.”Why is Credit Suisse struggling now? That engulfed other banks facing big problems, including Credit Suisse, which has been a slow-moving car wreck for decades. In 2014, Credit Suisse pleaded guilty to federal charges that it illegally allowed some U.S. clients to evade their taxes. Credit Suisse acted as an underwriter when the company went public on the Nasdaq in 2019.

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

Lescaudron was convicted by a Swiss court in 2018 of having forged the signatures of former clients, including Ivanishvili, over an eight-year period. 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. In response, Credit Suisse said it condemned the spying and had taken "decisive" steps to improve its governance and strengthen compliance.

☆ Explainer: Credit Suisse: How did it get to crisis point?
▼ + stars: | 2023-03-16 | by ( Anshuman Daga | ) www.reuters.com time to read: +3 min

Credit Suisse confirmed last month that clients had pulled 110 billion Swiss francs of funds in the fourth quarter while the bank suffered its biggest annual loss of 7.29 billion Swiss francs since the financial crisis. In December, Credit Suisse had tapped investors for 4 billion Swiss francs. Reuters Graphics Reuters GraphicsWHAT STEPS CAN CREDIT SUISSE TAKE TO CALM INVESTORS? HOW IMPORTANT IS CREDIT SUISSE? Credit Suisse has a local Swiss bank, wealth management, investment banking and asset management operations.

☆ 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.

☆ What happened at Credit Suisse and how did it reach crisis point?
▼ + stars: | 2023-03-16 | by ( Anshuman Daga | ) www.reuters.com time to read: +4 min

In December, Credit Suisse had tapped investors for 4 billion Swiss francs. Credit Suisse shares have lost more than 75% of their value over the past twelve months. Reuters Graphics Reuters GraphicsWHAT STEPS CAN CREDIT SUISSE TAKE TO CALM INVESTORS? HOW IMPORTANT IS CREDIT SUISSE? Credit Suisse has a local Swiss bank, wealth management, investment banking and asset management operations.

☆ CNBC Daily Open: Credit Suisse brings the banking crisis to Europe
▼ + stars: | 2023-03-16 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. The banking turmoil in the U.S. — which appeared to be contained just yesterday — spread to Europe on Wednesday in the form of Credit Suisse. Tightening financial conditions and a slowdown in the economy are exactly what the Federal Reserve is hoping to engineer through its interest rate hikes. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ Spanish banks' exposure to Credit Suisse well below 1 bln euros, source says
▼ + stars: | 2023-03-16 | by ( Jesús Aguado | ) www.reuters.com time to read: +2 min

MADRID, March 16 (Reuters) - Spanish banks' exposure to struggling Swiss lender Credit Suisse (CSGN.S) is immaterial and lower than 1 billion euros ($1.1 billion), a source with knowledge of the matter said on Thursday. "The total exposure from Spanish lenders to Credit Suisse is well below 1 billion euros," the source said, without elaborating further. Credit Suisse in Spain declined to comment. Two supervisory sources told Reuters on Wednesday that the European Central Bank had contacted banks on its watch to quiz them on their exposure to Credit Suisse. On Thursday, the head of Spanish banking association AEB Alejandra Kindelan said she saw "no risk of contagion to Spanish banks", adding that domestic banks were well funded and properly supervised.

☆ CNBC Daily Open: Credit Suisse spreads the banking crisis to Europe
▼ + stars: | 2023-03-16 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

☆ How Credit Suisse has evolved over 167 years
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +5 min

Here is how Credit Suisse has developed over 167 years:1856Politician and business leader Alfred Escher founds Schweizerische Kreditanstalt (SKA) to finance the expansion of the railroad network and promote Swiss industrialisation. 1997A reorganisation turns CS Holding into Credit Suisse Group and drops the SKA name; it also buys insurer Winterthur, a strategic partner. 2002A reorganisation creates two units: Credit Suisse Financial Services and Credit Suisse First Boston; two years later it splits into three units by adding Winterthur. 2005Credit Suisse and CSFB merge and stop using the Credit Suisse First Boston brand name. The Swiss authorities provide assurances that Credit Suisse has met "the capital and liquidity requirements imposed on systemically important banks".

ZURICH, March 9 (Reuters) - Credit Suisse has postponed publication of its annual report after a last-minute call from the United States Securities and Exchange Commission (SEC), which raised questions about its earlier financial statements. Credit Suisse said it had then decided to postpone publication of the annual report. It is unclear when the 2022 annual report will be released. Credit Suisse shares were indicated 3.2% lower in pre market activity in Zurich. Among a string of scandals, Credit Suisse was hard hit by the collapse of U.S. investment firm Archegos in 2021 as well as the freezing of billions of supply chain finance funds linked to insolvent British financier Greensill.

☆ 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.

☆ 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.

At the Fontainebleau hotel, Credit Suisse bankers were puzzled by the announcements, and concerned about their jobs being on the line, said the executive, who declined to be named. In response to questions from Reuters for this article, a spokesperson for Credit Suisse in London said: "We never comment on rumours or speculation." 'A ROCK AND A HARD PLACE'Even after Credit Suisse stopped financing hedge funds following the Archegos implosion in March 2021, the equities business remained a key part of its investment bank revenue. One option Credit Suisse is considering is to move its equities research to CSFB, Reuters reported. Slimming down the equities business would draw a further line under Credit Suisse's investment bank ambitions.

☆ 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.

☆ Credit Suisse 'seriously breached' obligations in Greensill case, Swiss regulator says
▼ + stars: | 2023-02-28 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

The logo of Credit Suisse Group in Davos, Switzerland, on Monday, Jan. 16, 2023.Credit Suisse "seriously breached its supervisory obligations" in the context of its business relationship with financier Lex Greensill and his companies, Swiss regulator FINMA concluded Tuesday. Credit Suisse CEO Ulrich Körner welcomed the conclusion of the FINMA investigation in a statement Tuesday. In March 2021, Credit Suisse closed four supply chain finance funds at short notice related to Greensill companies. FINMA announced Tuesday that it has ordered remedial measures and opened four enforcement proceedings against former Credit Suisse managers. Credit Suisse noted that all of the requirements identified by the regulator "are being addressed through the organizational measures already underway."

☆ 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.

☆ 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.

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