Can any financial wizards explain how Credit Suisse got into trouble?
Plenty of articles describing the ramifications but none really explaining the root cause.
Thanks
Credit Suisse, How It Got into This Mess?
monty168 on 16/03/2023 - 19:26
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Achegos and Greensill scandals that brought its spiraling downfall.
And a beautiful report card.
https://www.theguardian.com/news/2022/feb/21/tax-timeline-cr…
Waiting for Alesha comment (big fan of Alesha (not kidding))
told you so but you didn’t listen
not a finance wizard - but from my 'layman's' understanding
- Credit Suisse was(is) in a shit tonne of debt
(A bunch of investors have been saying that they are unsure that the firm is able to pay back it's loans over the course of a couple years now) - Their stock price falls by a significant amount
- Panic ensues - stock price continues to plummet
- Credit Suisse took a bailout loan from the Swiss Bank
summary = rather foreboding situation…
- Credit Suisse was(is) in a shit tonne of debt
Worked in the London office in the late 90s and they would hire English arts or history degree graduates to work in the global financial reporting department. The Aussie, Kiwi and South African contractors on working holidays were the only staff that had any financial and systems literacy.
Same as the US Banks, SUPER WOKE investment strategies … all three companies had ESG scores > 95!
English arts or history degree graduates to work in the global financial reporting department.
But that REALLY helps their diversity, equity and inclusion scores!!
The quicker the world recognises ESG for the scam it is, the better off we will all be :/
For the ESG lovers, why is Exxon rated one of the highest ESG scores (despite actually being the worlds largest polluter), while Tesla has been dropped from scoring altogether (where their products supposedly help the environment)?!?
Leadership doesnt care if the bank goes down, they are only interested in paying themselves bonuses, and hope for longer than shorter. They just dont care…
Indeed, the wealthiest account holders of both US Banks were reimbursed directly by the government (venture capitalists and party donors), while the smaller holders were told to suck eggs :/
You seem to think there’s one ESG score methodology.
You seem to think it is somehow magically ethical ;)
Tesla is dropping because Musk has turned into an idiot. He has decided to hang out with right wing bigots. Exxon is doing well now, but it may not be in 10 years time.
Ah, so ESG is all about who you hang out with, seems like a reasonable ranking method ;)
Pitty they lie when they try to sell it to investors by stating otherwise :P
Musk has turned into an idiot
what did he do?
He bought Twitter and let the rightwing nut jobs back on.
oh no, not just woke investment strategies, SUPER WOKE investment strategies!!!
Says the clueless :/
Lets hope you aren't banking with an institution with the same methodology, because I know for a fact I haven't :P
Look, if you living your best life is using the word 'woke' in allcaps and unironically, I'm not going to stop you.
I mean how could I? I'm clueless. I didn't even read the PDS which was literally just a post-it note that said "GO WOKE GO BROKE".
Kind of obvious in retrospect, but I was never much good at the financial analysis (being "if it rhymes, it's true").
Woke means alert to injustice especially racism. So you think this is a bad thing? What does that say about you?
easy tiger, have a bit of a read of my comments in the thread before you nail me to the cross
Not a mess. They’ve just been bailed out by the Swiss govt
Tried to compete with US investment banks without the capital base, that is, took too much risk.
My dad used to work there.
Cant give away too many details else I will get locked out of this forum again and again.
Scandals had rocked the precursor of this bank to the point that it got re-named.
They amalgamated 2 good bank long before the GFC.
Top management lost touch with reality. Qatari state bank rescued it once during the high interest periods with 9% bonds. They made it thru the GFC without bailout. But getting rid of them 9% bonds left endless wounds. Then they put an African in charge. The board became top heavy.
To keep shareholders they paid like our friend Gerry an uncovered dividend. The Saudis got in for the dividend. Locals made a bank run. There are enough pension assets there to make it thru!"Then they put an African in charge" needs a "dun dun dunnnnnn" musical sting in the background.
Monieur Thiam!
As trusty as an average qld cop……
Management caused this to crash the share price, so they can 'buyback' low.
Root cause poor management