One of the world’s oldest financial institutions, Credit Suisse has a turnover of $22.65 billion and is the second largest bank within the Swiss banking system. We offer a wide range of financial services through two major private banking divisions and an investment banking division.
The banking giant has recently come into the limelight after its stock price plunged sharply as a result of its investment in a failed hedge fund.
Concerns have been raised about the company’s overall stability, with many analysts now pointing to a chain of events similar to the collapse of Lehman Brothers in 2008, marking the beginning of another global financial recession. afraid of
Why Credit Suisse?
Its Private Banking division provides services such as wealth management, financial market expertise, investment banking solutions and access to a broad network of high-value contacts, while its Investment Banking division provides clients with a curated portfolio of We provide investment solutions. The bank claims he has more than 3,800 relationship managers in 50 countries.
The Investment Banking division consists of four service divisions. The Global Markets division offers a number of customized financial products and services for clients. They also assist international wealth management companies in processing their clients.
Investment banking and capital markets divisions provide debt and equity solutions, and banking financial and regulatory divisions assist clients with financial regulations specific to particular geographies.
Finally, our research department provides state-of-the-art integrated coverage and research services.
Credit Suisse Benefits
Credit Suisse promises its patrons many benefits with a diverse set of financial products and services tailored to their specific requirements. The company’s official website offers services such as the Fund and his ETFs, Alternative Investments, Forex and Precious Metals, Stocks, Structured Products, Strategic Asset Allocation, Market Outlook and Analysis.
The benefits of Credit Suisse are two-fold, especially in investment management. Clients have the option to delegate all day-to-day investment decisions to Credit Suisse. This frees you from the responsibility of constantly monitoring the market and entrusts it to experienced professionals.
Another option is consulting. It enables clients to make day-to-day investment decisions themselves and make real-time investment decisions from the perspective of experienced professionals.
Credit Suisse values
Formerly known as Schweizerische Kreditanstalt, Credit Suisse was founded in 1856 by Alfred Escher. This bank has gradually developed into one of the cornerstones of the Swiss financial sector. It financed major infrastructure projects such as the Gotthard Tunnel and played a key role in the growth of several major industrial companies. It has also contributed to the development of leading companies in the insurance industry, such as Swiss Life and Swiss Re.
Based in Zurich, Credit Suisse has a strong reputation in the international banking industry. This was evident in 1990 with the acquisition of US investment bank First Boston. Credit Suisse is now present in over 40 countries and worldwide he employs 51,410 people.
The bank has the distinction of being one of the 30 banks in the world considered “too big to fail” and needs to keep a significant cash surplus to weather the tough times. I have.
What are Credit Suisse’s strengths?
Over the years, Credit Suisse has won several awards and accolades, putting its name on the global financial map. In 2019, the publication PWM/The Banker called it the best private bank in the Middle East. It was also awarded the title of Best Private Bank of Russia and Qatar. Asia Risk named Credit Suisse ‘Asia’s Private Bank of the Year’.
The bank also won the Euromoney Award for Excellence in the same year and was awarded the title of ‘Best Bank for Wealth Management’ globally. It has won numerous regional awards in Asia, the Middle East and Latin America.
Why Credit Suisse Matters
Apart from being a major player in the global investment banking sector, Credit Suisse holds assets worth $829.1 billion, ranking 45th globally based on these assets, according to the S&P Global Rankings. considered a big bank in
There has been considerable speculation over the stability of banks over the past few months. This time last year, Credit Suisse showed his $22.3 billion market capitalization.
But in October of this year, its market capitalization plummeted to $10.4 billion, almost half of that value. Bank stocks also fell 56.2%. Bank credit default swaps hit their highest since 2008, according to reports. Banks reportedly delayed contract renewals for some contractors. One of his most senior dealmakers, his Jens Welter, has retired from Credit Suisse after 27 years.
Some analysts have expressed concern that the current situation at Credit Suisse has evoked memories of the 2008 Lehman Brothers crisis, resulting in a global recession.
Is Credit Suisse Broken?
Over the past two months, Credit Suisse has been subject to a lot of speculation and rumors about its stability. This has been attributed to recurring losses and several major risk management failures, resulting in a significant change in management.
Greensill, one of the entities that Credit Suisse has lent money to, is considered the largest non-bank provider of supply chain finance and declared bankruptcy in March 2021. Greensil borrowed from several outside investors other than Credit Suisse, and the fallout from the recession affected Credit Suisse and its customers.
Further losses occurred when US private investment firm Archegos Capital Management Investment Fund collapsed, impacting Credit Suisse’s prime brokerage business and costing banks more than $5 billion. Since then, Credit Suisse’s share price has fallen steadily, while credit default swaps, which act as insurance against companies that default on loans, have hit record highs.
The bank is accused of laundering money in Bulgaria and facilitating illicit loans in Mozambique.
In response to the current situation, Credit Suisse has been busy strengthening its wealth management division and restructuring its investment banking division. The bank’s liquidity coverage ratio of 191% is considered the best in its class.
Some analysts say a 2008 Lehman Brothers-style scenario is highly unlikely. Notably, banking today is much more regulated than it was 14 years ago.
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Naveen Athrappully is a news reporter covering business and world events for The Epoch Times.