Credit Suisse

Of scandals & distrust: What led to the ultimate fall of Credit Suisse

After Credit Suisse wipeout, AT1 bonds make a return in the global market

A Bloomberg index of contingent convertible bonds has risen 10 per cent from the lows seen during the Credit Suisse crisis

Swiss govt cut up to $66 mn in bonuses for top Credit Suisse executives

The Swiss government says it's ordered cuts to the bonuses of top executives of Credit Suisse, with nearly 1,000 managers being deprived of tens of millions combined as the troubled bank heads toward a forced merger with rival UBS. The Federal Council, a seven-member panel that runs Switzerland's executive branch, announced Wednesday that it has instructed the Finance Department to cancel altogether or reduce by either one-half or one-quarter such bonuses due last year among the top three rungs of management. That will amount to a loss of bonus pay totaling about 50 million to 60 million Swiss francs (USD 55 million to USD 66 million). The move comes after Swiss authorities scrambled in mid-March to cobble together a 3 billion Swiss franc (USD 3.25 billion) sale to UBS of Credit Suisse, which suffered surging outflows of deposits and a plunge in its share price. Two days after the deal was announced, the government said it was temporarily suspending bonus payouts to Credit Suisse .

Credit Suisse's fatal bank run points to gaps in liquidity regulations

As Swiss officials and Credit Suisse executives emphasized this week that the firm's emergency sale staved off imminent collapse, they highlighted how sharp the run was

Credit Suisse shareholders upbraided failures as chairman apologises

Credit Suisse shareholders on Tuesday upbraided the Swiss bank's leaders for years of mismanagement, scandal and obfuscation that sent its stock price into the gutter, while executives apologised and insisted that the only way forward for the once-venerable lender was a government-engineered takeover by rival UBS. A largely polite if at times boisterous, emotional, angry and even humorous mood pervaded at the first in-person shareholder meeting in four years and likely the last in the bank's 167-year history: Credit Suisse is set to be swallowed by its crosstown competitor in the coming months in a deal that was forced through without a shareholder vote. Despite speech after speech airing concerns ranging from Switzerland's role in global finance to environmental impact to wiped-out pension savings, shareholders narrowly approved a compensation plan for last year that will pay out millions to executives and board members. Investors also reelected board members who will shepherd th

Truly sorry that we could not keep the trust, says Credit Suisse chairman

After years of scandal and losses, Credit Suisse came to the brink of collapse before UBS rode to the rescue with a merger engineered and bankrolled by the Swiss authorities

Credit Suisse in for firestorm as shareholders get last crack at meet

Once-venerable Credit Suisse is heading into a possible firestorm Tuesday as shareholders meet for what is shaping up to be their last crack at managers following a colossal collapse of the bank's stock price over the last decade and as rival UBS is set to gobble up the 167-year-old Swiss lender at a bargain-basement price. In 2007, Credit Suisse shares fetched as much nearly 88 Swiss francs (dollars). Today, they're trading at about 80 cents. As the stock skid worsened and jittery depositors pulled their money, Swiss government officials hastily orchestrated a USD 3.25 billion takeover by UBS two weekends ago. Political leaders, financial regulators and the central bank feared a teetering Credit Suisse could further roil global financial markets following the collapse of two US banks. Crosstown competitor UBS has been known for a more conservative culture after surviving the 2008 financial crisis, thanks in part to a government bailout. The annual general meeting, the first held i

Swiss prosecutors probe Credit Suisse ahead of its takeover by UBS

The Swiss attorney general's office says it has opened a probe into the events surrounding embattled bank Credit Suisse, which is to be taken over by rival UBS. Switzerland's government and financial regulators helped engineer the hastily arranged, USD 3.25 billion agreement that was aimed in part to help calm worries about the global financial system and will leave the country with a single huge global bank. The attorney general's office said Monday that it wanted to proactively fulfil its remit and its responsibility to contribute to a clean Swiss financial sector. It said that it has set up monitoring that would enable it to get involved immediately if any offences were committed that come under its auspices. The office said the probe falls short of a formal investigation and is not a criminal inquiry. The office was responding to an emailed request Monday for comment after the Financial Times reported about the probe over the weekend. The statement made no reference to ...

UBS likely to cut workforce by 20-30% after Credit Suisse takeover

That number of predicted layoffs dwarfs the 9,000 job cuts that Credit Suisse announced before its rescue by UBS last month

ICICI to double wealth bankers, boost assets to $60 billion in 2 yrs

ICICI Securities Ltd. aims to double its wealth managers and boost the assets from rich clients to $60 billion in the next two years, as competition ramps up in India's rapidly growing wealth industry

UBS brings back Sergio Ermotti as CEO with Credit Suisse deal ahead

UBS said Wednesday that it's bringing back former CEO Sergio Ermotti to lead the Swiss bank as it moves forward with a government-orchestrated plan to take over struggling rival Credit Suisse. Ermotti, who was the bank's top executive for nine years and led a turnaround following the 2008 global financial crisis, will take over next Wednesday from CEO Ralph Hamers. Hamers took up the job in November 2020 and will remain at UBS during a transition period to ensure a successful closure of the transaction and a smooth handover, the bank said in a statement. UBS credited Ermotti, who is now chairman of insurer Swiss Re, for having cut its footprint and changing the culture of the bank and it pointed to his experience in bringing big financial institutions together. The hastily arranged, USD 3.25 billion deal for Credit Suisse aimed to stem the upheaval in the global financial system after the collapse of two US banks and jitters about long-running troubles at Credit Suisse led shares

US's Credit Suisse violates deal on tax evasion of its rich clients

Credit Suisse violated a plea agreement with US authorities by failing to report secret offshore accounts that wealthy Americans used to avoid paying taxes, US lawmakers said Wednesday, releasing a two-year investigation that detailed the role employees at the embattled Swiss bank had in aiding tax evasion by clients. The US Senate Finance Committee pointed to an ongoing, possibly criminal conspiracy tied to nearly USD 100 million in accounts belonging to a family of American taxpayers that the bank did not disclose. It also said Credit Suisse helped a US businessman hide more than USD 220 million in offshore accounts from the IRS. Credit Suisse revealed that it had found 23 accounts each worth more than USD 20 million that were not declared to tax authorities, many of them unveiled just days before the report was released, according to the committee. It said its findings show that more than USD 700 million was concealed in violation of the bank's 9-year-old plea deal with the US ...

UBS to bring back former CEO Ermotti with Credit Suisse deal ahead

UBS said Wednesday that it's bringing back former CEO Sergio Ermotti to lead the Swiss bank as it moves forward with a government-orchestrated plan to take over struggling rival Credit Suisse. Ermotti, who was the bank's top executive for nine years, will take over next Wednesday from CEO Ralph Hamers. Hamers took up the job in November 2020 and will remain at UBS during a transition period to ensure a successful closure of the transaction and a smooth handover, the bank said in a statement. UBS credited Ermotti for having cut its footprint and changing the culture of the bank and it pointed to his experience in bringing big financial institutions together. The hastily arranged, $3.25 billion deal for Credit Suisse aimed to stem the upheaval in the global financial system after the collapse of two U.S. banks and jitters about long-running troubles at Credit Suisse led shares of Switzerland's second-largest bank to tank and customers to pull out their money. Swiss authorities urge

Credit Suisse, UBS among banks under scrutiny in Russia sanctions probe

The Swiss banks were included in a recent wave of subpoenas sent out by the US government, the people said. The information requests were sent before the crisis

TMSEp396: US Fed rate hike, Bisleri, air pollution, Credit Suisse AT1 bonds

How will US Fed policy outcome affect markets? What's happening with Bisleri? Why can't Indian cities curb air pollution? What happened to Credit Suisse's AT1 bonds? All answers here

UBS's takeover of Credit Suisse halted crisis, says Swiss central bank

The Swiss central bank hiked its key interest rate on Thursday and insisted that a government-orchestrated takeover of troubled Credit Suisse by rival bank UBS ended the financial turmoil. In a statement, the Swiss National Bank said it is providing large amounts of support for the deal to merge Switzerland's biggest banks and that the late Sunday announcement by the federal government, financial regulators and the central bank put a halt to the crisis. An insolvency of Credit Suisse would have had severe consequences for national and international financial stability and for the Swiss economy, said Thomas Jordan, chairman of the Swiss central bank's governing board. Taking this risk would have been irresponsible. The hastily arranged, USD 3.25 billion deal aimed to stem the upheaval in the global financial system after the collapse of two US banks and jitters about long-running troubles at Credit Suisse led shares of Switzerland's second-largest bank to tank and customers to pull o

FM Sitharaman to review PSBs performance Sat amid financial crisis in West

Regularly scheduled meeting could discuss banking troubles in the US and Europe

FM Nirmala Sitharaman likely to meet CEOs of PSU Banks on Saturday

Finance minister Niramala Sitharaman is scheduled to meet managing directors of public sector banks (PSBs) on March 25 for performance review in the backdrop of failure of few banks in the US and liquidity crisis faced by Credit Suisse. The meeting is going to take stock of the progress made by banks in achieving targets set for the various government schemes, including Kisan Credit Card (KCC), Stand-Up India, Pradhan Mantri Mudra Yojana (PMMY), and emergency credit line guarantee scheme (ECLGS) to help businesses affected by Covid-19, according to sources. This is the first full review meeting after the presentation of Budget 2023-24 and banks would be asked to focus on the areas highlighted by the Budget including credit flow to productive sectors. The finance minister would review credit growth, asset quality, and capital raising and business growth plan of banks for next financial year, the sources said, adding non-performing assets (NPAs) of Rs 100 crore and the recovery status

Indian banks resilient; AT1 bond market to remain unaffected: Report

During FY23, HDFC Bank was the only private sector lender that raised capital using AT1 bonds

UBS buys back $3-billion bonds in bid to boost investor confidence

UBS is buying the bonds at the price at which they were sold rather than at market prices, which compensates investors after the sell-off earlier this week