Tag Archives: credit

The Swiss watchdog asked Credit Suisse about the risk of Greensill -SonntagsZeitung | Instant News

FILE PHOTO: Swiss bank Credit Suisse logo seen at its headquarters in Zurich, Switzerland March 24, 2021. REUTERS / Arnd Wiegmann // Photo File / Photo File

ZURICH (Reuters) – Swiss chief financial regulator FINMA questioned Credit Suisse over the risks involved with now-bankrupt financial firm Greensill Capital “months” before the bank was forced to close $ 10 billion in funds such as for Greensill, Swiss newspaper SonntagsZeitung reported Sunday.

Alongside formal discussions at a technical level between the bank and FINMA, chief supervisor Mark Branson privately discussed the risks with Credit Suisse Chairman Urs Rohner and Chief Executive Thomas Gottstein who walked out during a meeting on an undetermined date, the newspaper reported, citing information in his possession. . obtained.

FINMA declined to comment. Credit Suisse also declined to comment.

Switzerland’s second largest bank has staggered from its exposure to the collapse first of Greensill Capital and then Archegos Capital Management within a month.

Credit Suisse’s asset management unit was forced last month to close $ 10 billion in supply chain financial funds invested in bonds issued by Greensill after the British company lost credit insurance coverage shortly before filing for bankruptcy. The bank has suspended the fund manager and replaced the head of its asset management unit.

The massive loss to US investment fund Archegos this month also prompted Credit Suisse to replace its head of investment and compliance and risk banking after saying it would book first-quarter expenses of $ 4.7 billion from its exposure to affected companies.

Reporting by Brenna Hughes Neghaiwi; Edited by Rachel Armstrong and Susan Fenton


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Credit Suisse can weather Archegos’ fall, said the head of the IMF mission | Instant News

FILE PHOTO: Swiss bank Credit Suisse logo seen at its headquarters in Zurich, Switzerland March 24, 2021. REUTERS / Arnd Wiegmann / File Photo

ZURICH (Reuters) – Credit Suisse must be able to deal with the $ 4.7 billion loss from the Archegos hedge fund and the collapse of the $ 10 billion Greensill fund, without significant risk to the health of the Swiss financial sector from the episode, the IMF’s country mission. said the head.

Credit Suisse shares have fallen 25% within a month, with Switzerland’s second largest bank shaken from its collapsing exposure first to Greensill Capital and then Archegos Capital Management.

“Our assessment is that the incident was not systematic and manageable by Credit Suisse,” Mark Horton told reporters after the International Monetary Fund (IMF) published its report on Switzerland.

Credit Suisse took a number of actions; changing the management team, limiting dividends, and conducting external assessments of some developments that have occurred, “Horton said, Wednesday.

“We do not see this as seriously damaging Switzerland to either the financial sector or the economy as a whole,” he added.

Credit Suisse entered the coronavirus crisis with strong capital and a strong position, said Horton, adding that it had sufficient resources to manage the problem.

“This is seen as an internal problem that needs to be handled by the bank itself and has started to be done,” he said.

Reporting by John Revill; Edited by Alexander Smith


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Swiss- Credit Suisse / Archegos: music stops for major brokers | Instant News

(MENAFN – Swissinfo)

Credit Suisse executive committee members themselves will not receive short-term bonuses for 2020 or long-term awards for 2021 Keystone / Peter Klaunzer

In the music chair, the player whose seat is filled sometimes sits on the floor with a bump. This is Credit Suisse’s undignified position announcing a reduction in value of CHF4.4 billion ($ 4.7 billion).

This content was published April 6, 2021 – 14:46 April 6, 2021 – 14:46 in Lex’s Financial Times column

Archegos’ boom in US family office clients has wiped out 18 months of average net income and cost two senior executives their jobs. Wall Street’s Agile banks, such as Goldman Sachs and Morgan Stanley, appear to have escaped unscathed. But the systemically important stability of the bank should not depend on flair for party games.

External Content

Regulators led by the US Securities and Exchange Commission should investigate the major brokerage industries. It is a simple business to help funders like Archegos to structure and fund bets.

The risk of buffering capital becomes clear when six or more institutions lend separately to lesser-known investors in volatile stocks while seemingly knowing little about the others. Without strong retained earnings, Credit Suisse’s core equity equity would fall uncomfortably below 12% of risk-weighted assets.




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Greensill Whistleblower Tips Warns German Regulators of Last Year’s Fraud | Instant News

The German banking regulator received a series of whistleblower tips over the past year that made “multiple allegations of fraud” at Greensill Bank, prompting it to sue for repairs at the bank, according to an internal German government report reviewed by The Wall Street Journal.

The regulator, known as BaFin, received the first series of warnings in the second quarter of 2020. The information alleges that some of Greensill’s assets were backed by fake invoices, according to the report, which outlines the regulator’s efforts over the past year to supervise banks.

BaFin received another alert in the third quarter of 2020 and three other submissions this year. The German-language report, which did not specify the origin of the filing, said the information raised “concerns about the financial situation of the Greensill Group as well as various allegations of fraud.”

There are mainly concerns about the loan Greensill Bank is making to the GFG Alliance, a metals company owned by the British-Indian steel magnate Sanjeev Gupta.

A Mr. spokesperson. Gupta declined to comment.


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I am 68 years old, make $ 130,000 and love eco travel in Peru, Brazil and Africa. I want to travel while I can, but I am afraid to stop working | Instant News

Dear Quentin,

I am a 68 year old man who has only been working from home for a year due to the COVID-19 pandemic. I earn about $ 130,000 a year plus $ 35,000 in Social Security, and an additional $ 25,000 in capital gains from a small apartment house, and partnership interests.

I have over $ 300,000 in savings and $ 400,000 in equity in my own home. I also have about $ 835,000 in a 401 (k). The problem, which was mitigated by the pandemic, is that I love eco-travel in countries like Peru, Brazil, Africa and Belize.

Obviously, as we get older, this type of travel becomes more and more strenuous, so timing is very important. I’m seriously considering retiring, and traveling as much as I can before I can’t. My income would be up to $ 130,000 per year if I did. I feel comfortable spending $ 60,000 a year on lifestyle, plus travel.

Does retirement make sense?

Fear of Retiring, But Having Itchy Feet

You can email The Moneyist with any financial and ethical questions related to the coronavirus at [email protected]

Dear Itchy,

Retirement makes sense, working part-time makes sense and / or reduces your job so you can travel more. But don’t make hasty decisions about taking off on a jet plane and locking your doors before you see how the next few months are going well. We are still in the midst of a pandemic, and the coronavirus experiencing a revival in Europe and other countries, with a new mutation.

‘I don’t want to be bliss that kills. I want to make sure that you take good care of your physical and financial health, and have all the information to make an informed decision. ‘

– Moneyist

check MarketWatch Retirement Calculator where you can enter your age, income, savings and other details to plan for your retirement. On average, retirement plan provider Fidelity Investments recommends that you save 10 times your income for retirement at age 67 in order to retire comfortably. If you are planning to travel, you can also benefit from renting a house.

I don’t want to be a killing pleasure. I want to make sure that you take good care of your physical and financial health, and have all the information to make an informed decision. A 65-year-old man will need $ 72,000 to have a 50% chance of saving enough to cover their health care costs in retirement in 2016, according to the Employee Benefit Research Institute (EBRI). report.

Ultimately, one of the reasons you work for years (assuming you enjoy it) is to contribute to society, but also enjoy a tangible rest so that you can do what makes you happy. Only you can sit back and look at your income and expenses when you retire, and I recommend that you do that with a financial planner. Can you retire? Yes. Do you deserve it? Yes again.

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