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☆ Premarket Stocks: Who do we blame for the fall of SVB?
▼ + stars: | 2023-03-16 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Blame the Fed: SVB’s downfall was largely caused by a record $42 billion bank run that left the bank in desperate need of cash. But the Fed’s rate hikes had undermined the value of bonds, a critical source of capital for SVB. “The Federal Reserve failed as a bank supervisor,” he wrote. On Capitol Hill, frequent Fed critic Sen. Elizabeth Warren has been quick to blame Federal Reserve Chair Jerome Powell for a lack of oversight. Blame SVB: Others say the blame should be placed on the banks themselves.

☆ Credit Suisse’s $50 billion lifeline calms bank panic
▼ + stars: | 2023-03-16 | by ( Mark Thompson | ) edition.cnn.com time to read: 1 min

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☆ Instant View: Banking stocks tank again as Credit Suisse woes rock market
▼ + stars: | 2023-03-15 | by ( Reuters Staff | ) www.reuters.com time to read: +3 min

FILE PHOTO: A Credit Suisse logo is pictured on a the roof of a branch in Geneva, Switzerland, November 3, 2022. European banks shares slid over 6%, European stocks were down more 3% and U.S. stock futures pointed to a weak start for Wall Street shares. MARKET REACTION:STOCKS: Credit Suisse share trading was halted after heavy losses, last down over 20%, ING Group, ABN AMRO were4 down over 6%. “But in general, the balance sheet is in a much better position, with the European banks all highly regulated. So, it is important that the European regulator make clear that the underlying systemic risk, not only for deposits, but in the overall European banking market, is rather low.”

☆ Premarket stocks: The forgotten rescue plan that could prevent another SVB-like collapse
▼ + stars: | 2023-03-15 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +9 min

Bank stocks rebounded significantly on Tuesday after logging record plunges Monday and the week prior. Those banks will coordinate to take Fed loans around the same time on the same day alongside smaller banks. ▸ US bank stocks rebounded on Tuesday, recovering some of their losses after the collapse of three banks tested markets on Monday. Regional bank stocks rallied: First Republic (FRC) Bank ended the day up 27% after a record drop on Monday. The question is whether bank stocks can hold on to their gains or if Tuesday was just a sector-wide dead cat bounce.

LONDON, March 15 (Reuters) - Finance minister Jeremy Hunt presented less gloomy forecasts for Britain's economy at his Spring Budget on Wednesday. Reuters Graphics Reuters GraphicsROSIER OUTLOOKA rout in global banking stocks on Wednesday overshadowed many UK-specific moves. Investments announced by Hunt such as a corporate spending tax break, a boost for defence and extra childcare support were not viewed as particularly inflationary. Unlike in the last budget, noise around windfall taxes on oil and gas companies was muted in the run-up to the budget since energy prices have fallen dramatically since then. "In general, the budget is not the big story for gilts right now, global drivers are in the driving seat," said James Smith, economist at ING.

☆ Credit Suisse finds ‘material weakness’ in its financial reporting, scraps exec bonuses
▼ + stars: | 2023-03-14 | by ( Hanna Ziady | ) edition.cnn.com time to read: +1 min

London CNN —Credit Suisse on Tuesday acknowledged “material weakness” in its financial reporting as it scrapped bonuses for top executives in the wake of its worst annual performance since the global financial crisis. The board concluded that “this material weakness could result in misstatements of account balances or disclosures that would result in a material misstatement to the annual financial statements of Credit Suisse,” it added. Credit Suisse said it was urgently developing a “remediation plan” to strengthen controls. Credit Suisse’s stock was down 3.7% in morning trade. The bank’s share price fell to a new record low Monday, as the collapse of Silicon Valley Bank and Signature Bank scared investors and pummeled European banking stocks.

☆ Credit Suisse blunders undermine CEO’s repair job
▼ + stars: | 2023-03-09 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

Credit Suisse said on Thursday it would not publish its 2022 annual report on the day, as previously planned, prompting its shares to fall by roughly 5%. The scarcest commodity at Credit Suisse right now is confidence, among both its clients and investors. Follow @liamwardproud on TwitterCONTEXT NEWSCredit Suisse on March 9 said it would delay the publication of its 2022 annual report. In the same annual report, Credit Suisse also changed the way it accounted for past share-based compensation, certain non-cash exchange rate movements and hedges. Shares in Credit Suisse were down 4.9% to 2.55 Swiss francs as of 0956 GMT on March 9.

☆ Credit Suisse’s Legal Charges Threaten Recovery
▼ + stars: | 2023-03-02 | by ( Margot Patrick | ) www.wsj.com time to read: 1 min

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☆ Credit Suisse finds new genre of loose crisis talk
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +2 min

Reuters reported on Monday that financial regulator Finma is reviewing remarks the Credit Suisse (CSGN.S) chair made in a punishing period late last year. He said in early December that outflows during October, mainly in wealth management, had “completely flattened out”, “partially reversed” and “basically stopped”. He could argue that the outflows had indeed stabilised when he spoke, but then deteriorated again afterwards. Either way, the usual argument for speaking up is to counteract negative rumours, which in Credit Suisse’s case swirled on social media. Credit Suisse’s 6% share fall after the Reuters report suggests that silence might have been a better guard against both risks.

☆ Credit Suisse investor loses faith in management over cash outflows
▼ + stars: | 2023-02-10 | by ( ) www.reuters.com time to read: +3 min

Thomae said investors were particularly disappointed that withdrawals had continued after Credit Suisse CEO Ulrich Koerner and Chairman Axel Lehmann had said the situation had stabilised. Deka, which is owned by Germany's unlisted savings banks, holds a stake of 0.02% in Credit Suisse, according to Refinitiv data. Credit Suisse shares rebounded on Friday, gaining nearly 4% after losing nearly 15% on Thursday when shareholders took fright at results described by one shareholder as "catastrophic." The market is still wondering what the risk/return profile of “New Credit Suisse” will look like," Venditti said. Ratings agencies said Credit Suisse had 'some momentum' in its restructuring, including disposing of non core assets and slashing costs, but faced significant risks ahead.

☆ Credit Suisse’s Losses Deepen, Threatening Overhaul
▼ + stars: | 2023-02-09 | by ( Margot Patrick | ) www.wsj.com time to read: 1 min

Credit Suisse Group AG reported a fifth consecutive quarterly loss and said rich customers withdrew around $100 billion in the fourth quarter, signs that the beleaguered lender has yet to turn the corner. The Swiss bank is trying to recover from scandals and financial losses with a sweeping overhaul. It wants to focus on wealth management and is breaking up its investment bank.

☆ Credit Suisse CEO tries to bail out a leaky ship
▼ + stars: | 2023-02-09 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

LONDON, Feb 9 (Reuters Breakingviews) - Chief Executive Ulrich Körner is doing what he promised at Credit Suisse (CSGN.S). The goal is to focus Credit Suisse on its steadier wealth-management and retail banking units. Revenue from trading equities was just $15 million, down 96% year-on-year, partly because Credit Suisse clamped down on risk. Clients pulled a net 111 billion Swiss francs of assets from the group during the three-month period. Credit Suisse shares were down 9.7% at 2.94 Swiss francs as of 1041 GMT on Feb. 9.

☆ UBS Attracts Wealthy Clients to Help Lift Profit
▼ + stars: | 2023-01-31 | by ( Margot Patrick | ) www.wsj.com time to read: 1 min

UBS is one of Europe’s strongest lenders in terms of its stock valuation and capital position. UBS Group AG said wealth clients added new assets at the bank in the fourth quarter, helping it post a better-than-expected net profit. Chief Executive Ralph Hamers said it was among banks benefiting from outflows at rival Credit Suisse Group AG, including in Asia. He said Credit Suisse’s woes weren’t the main driver of inflows.

☆ Hedge fund manager Boaz Weinstein bets market is wrong on Credit Suisse
▼ + stars: | 2023-01-17 | by ( Nell Mackenzie | ) www.reuters.com time to read: +3 min

"The curve trade in Credit Suisse reflects my view that one way or the other, in the next two years the drama around Credit Suisse will resolve for better or for worse. Weinstein led a proprietary trading fund at Deutsche Bank which was spun out to start Saba Capital Management in 2009. Credit Suisse's CDS surged in price through late November after the bank's $2.4 billion rights issue and the stock of the company fell to the lowest level in its 166-year history. While bearish bets against Credit Suisse mounted in late 2022, Weinstein says he watched Credit Suisse's CDS price curve make less and less sense: the 2-year protection on the bank cost about the same as the 10-year. Credit Suisse declined to comment.

☆ Valuing Michael Klein is a fascinating sideshow
▼ + stars: | 2023-01-13 | by ( Liam Proud | ) www.reuters.com time to read: +5 min

The two sides have discussed a deal where Credit Suisse would acquire M. Klein & Company with Klein getting a stake in First Boston. Putting a price on M. Klein & Co is hard from the outside because its accounts aren’t publicly available. The size of that holding depends therefore on the relative worth of First Boston and M. Klein & Co. A 9% stake would then be worth $320 million, implying a huge payday for M. Klein & Co shareholders. If Klein makes money, Credit Suisse shareholders would do very well too.

☆ Regulators find deficiencies in Credit Suisse resolution plan, shortcomings in BNP Paribas plan
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: +1 min

[1/2] A Christmas tree is decorated in front of the headquarters of Swiss bank Credit Suisse in Zurich, Switzerland November 23, 2022. REUTERS/Arnd Wiegmann//File PhotoDec 16 (Reuters) - The U.S. Federal Reserve and the Federal Deposit Insurance Corp identified two deficiencies in Credit Suisse’s so-called “living will” that details how the firm would be unwound in the event of bankruptcy related to the bank’s U.S. governance and cash flow forecasting. Banking regulators also identified a shortcoming, which is not as severe as a deficiency, in BNP Paribas’ resolution plan connected to the continuity in resolution of its securities repurchase agreement activity for the bank’s U.S. operations. Last month, the Fed and FDIC also said Citigroup Inc must remediate its living will, saying problems with the bank’s data governance could adversely affect its ability to produce timely and accurate data during a period of financial stress. Reporting by Hannah Lang in Washington, Editing by Franklin PaulOur Standards: The Thomson Reuters Trust Principles.

☆ 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.

Saudi Arabia’s crown prince and a U.S. private-equity firm run by Barclays PLC’s former chief executive are among investors preparing to invest $1 billion or more into Credit Suisse ‘s new investment bank, people familiar with the matter said. Crown Prince Mohammed bin Salman is considering an investment of around $500 million to back the new unit, CS First Boston, and its CEO-designate, Michael Klein , some of the people said. Additional financial backing could come from U.S. investors including veteran banker Bob Diamond ‘s Atlas Merchant Capital, people familiar with that potential investment said. Credit Suisse previously said it had $500 million committed from an additional investor it hasn’t named.

☆ Credit Suisse’s fuzzy Apollo deal better than none
▼ + stars: | 2022-11-15 | by ( Liam Proud | ) www.reuters.com time to read: +3 min

The U.S. buyer, which already has about $523 billion of client money, will also manage the remaining $20 billion of Credit Suisse’s packaged loans and mortgages, in return for a fee. The Apollo deal and other smaller transactions will only reduce Credit Suisse’s risk-weighted assets by roughly $10 billion by mid-2023, which is less than half of the $22 billion that Körner said was sitting in the unit at the end of September. Credit Suisse also said that the final sale price will depend on discount rates. Follow @liamwardproud on TwitterloadingCONTEXT NEWSCredit Suisse on Nov. 15 said it would sell the bulk of its securitised products business to Apollo Global Management. As a result of the deals, Credit Suisse’s risk-weighted assets will fall by about $10 billion.

CompaniesCompanies Law firms Credit Suisse Securities (europe) Limited Follow(Reuters) - Credit Suisse can know who is behind a lawsuit accusing it of fraud in connection with the purchase of more than $100 million of notes, a London court ruled on Thursday. Credit Suisse declined to comment. But Credit Suisse contends that German state-owned lender KfW – which rescued IKB in 2007 and is said by Credit Suisse to be directing the litigation – knew enough about any alleged wrongdoing to bring a claim before 2012. 30 Limited v Credit Suisse Securities (Europe) Limited and others, CA-2022-001108. For Loreley: Tim Lord and Fred Hobson of Brick Court Chambers, and RPCFor Credit Suisse: Tamara Oppenheimer and Adam Sher of Fountain Court Chambers, and Cahill Gordon & ReindelOur Standards: The Thomson Reuters Trust Principles.

☆ How Credit Suisse’s turnaround could work: podcast
▼ + stars: | 2022-11-10 | by ( Aimee Donnellan | ) www.reuters.com time to read: 1 min

LONDON, Nov 10 (Reuters Breakingviews) - CEO Ulrich Körner is raising $4 bln of fresh equity and shrinking the Zurich-based group’s trading business to put it on a steadier footing. In this Viewsroom podcast, Breakingviews columnists debate the merits of the plan and what’s at stake if it fails. Listen to the podcastFollow @aimeedonnellan on TwitterEditing by Amanda Gomez and Oliver TaslicOur Standards: The Thomson Reuters Trust Principles. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

NEW YORK/ LONDON, Nov 3 (Reuters Breakingviews) - First Boston is an old Wall Street name that’s re-emerging from Credit Suisse (CSGN.S) with some new features. Credit Suisse Chief Executive Ulrich Körner is reshaping the $11 billion group to put some bad years and big losses firmly in the past. Credit Suisse is setting up joint ventures between CS First Boston and the parent’s trading and wealth management businesses, according to a person familiar with the matter. An added complication is that CS First Boston bankers could be getting paid in their own division’s stock, rather than Credit Suisse shares. Michael Klein will step down from the Credit Suisse board of directors to help launch CS First Boston, the bank said.

☆ What Saudi Arabia’s Biggest Bank Wants With Credit Suisse
▼ + stars: | 2022-10-31 | by ( Stephen Kalin | Margot Patrick | ) www.wsj.com time to read: 1 min

Credit Suisse’s soon-to-be-largest investor is keen on gaining access to the lender’s industry specialists and new tools . REUTERS/Arnd Wiegmann/File PhotoDUBAI–Saudi Arabia’s largest bank will soon be the biggest investor in Credit Suisse AG and wants to bring the Swiss lender deeper into the kingdom’s booming financial markets while expanding ties to rich Middle Easterners. “We think it would be synergistic to both sides if we could get them more involved in the Saudi market,” Saudi National Bank Chairman Ammar al-Khudairy said.

☆ Michael Klein’s fourth act may be his toughest
▼ + stars: | 2022-10-28 | by ( Liam Proud | ) www.reuters.com time to read: +3 min

Yet his toughest task yet will be making a success of Credit Suisse’s (CSGN.S) carved-out advisory unit, CS First Boston. Credit Suisse will be reluctant to provide that, having already slashed exposures to $3.6 billion from $10.2 billion in early 2021. Credit Suisse has struggled for years to encourage the two divisions to team up on deals involving billionaire business owners. Klein’s fourth investment banking act will be his toughest. Klein, a former Citigroup banker who has been on the Credit Suisse board since 2018, will act as an adviser to Chief Executive Ulrich Körner.

☆ 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.

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