Credit Suisse warns of more losses, drawing regulatory attention

Reuters ^ | 2/9/23 | By Noele Illien

[EBH]

Credit Suisse Group (CSGN.S) on Thursday reported its biggest annual loss since the 2008 global financial crisis after rattled clients pulled billions from the bank, and it warned that a further "substantial" loss would come this year.

Battered by one scandal after another, the bank saw a sharp acceleration in withdrawals in the fourth quarter, with outflows of more than 110 billion Swiss francs ($120 billion), although it said the picture has been improving.

In a statement, Swiss regulator Finma said that while Credit Suisse's liquidity buffers had a stabilising effect on the bank and are being rebuilt, the regulator "monitors banks very closely during such situations".

The results, described as "catastrophic" by Ethos, which represents some Credit Suisse shareholders, sent the bank's shares down 14.7% on Thursday to 2.77 francs, valuing the lender at 11.1 billion francs.

Switzerland's second-biggest bank has begun a major overhaul of its business, cutting costs and jobs to revive its fortunes, including creating a separate business for its investment bank under the CS First Boston brand. The bank raised 4 billion Swiss francs from investors in December.

Chief Executive Ulrich Koerner said: "We have a clear plan to create a new Credit Suisse and intend to continue to deliver on our three-year strategic transformation."

[EBH]

Credit Suisse axes top bosses’ bonuses after biggest loss since financial crisis

Swiss bank is cutting 9,000 jobs in restructuring programme after series of scandals

https://www.theguardian.com/business/2023/feb/09/credit-suisse-bonuses-loss-jobs-restructuring

Credit Suisse posts biggest annual loss since 2008
https://www.cnn.com/2023/02/09/investing/credit-suisse-losses/index.html

[fruser1]

“revive its fortunes”

I wonder how much they lost aned how fast after swiss banks started cooperating w/the IRS about a decade ago.

[SaveFerris]

2008 redux is coming