The Huge Loss and Scandal of Credit Suisse.

Credit Suisse has faced a series of financial losses and scandals that have worried investors and fueled a recent client exodus. In 2022, Credit Suisse suffered a net loss of 7.3 billion euros partly due to its involvement with investment fund Archegos and financing company Greensill which both collapsed due to risky behavior. Swiss regulators have pledged a liquidity lifeline to Credit Suisse after its shares tumbled as much as 30% on Wednesday.

 

• About Credit Suisse.

 

Credit Suisse: A Leading Global Financial Services Company

 

Credit Suisse is one of the largest financial services companies in the world. Headquartered in Zurich, Switzerland, the company has a global presence and offers a wide range of financial products and services to its clients. With a history dating back to 1856, Credit Suisse has established itself as a trusted and reliable provider of banking and financial services.

 

Size and Rank of Credit Suisse in Switzerland

 

In Switzerland, Credit Suisse is one of the largest banks and a major player in the financial services industry. According to data from the Swiss National Bank, as of the end of 2020, Credit Suisse had total assets of CHF 789 billion (approximately USD 860 billion). This makes it the second-largest bank in Switzerland, behind only UBS.

 

Credit Suisse employs around 18,000 people in Switzerland and has a network of branches and offices throughout the country. The bank provides a wide range of financial services to its Swiss clients, including wealth management, investment banking, and retail banking.

 

Size and Rank of Credit Suisse in the World

 

Globally, Credit Suisse is also a major financial services company. As of the end of 2020, the bank had total assets of CHF 1.3 trillion (approximately USD 1.4 trillion). This places it among the largest banks in the world, alongside other global financial giants such as JPMorgan Chase, HSBC, and Citigroup.

 

Credit Suisse operates in more than 50 countries worldwide and employs approximately 48,000 people. The bank's global presence allows it to offer a wide range of financial products and services to its clients, including private banking, investment banking, and asset management.

 

Rankings and Recognition

 

Credit Suisse has received numerous awards and recognitions for its financial products and services. In 2020, the bank was named "Best Private Bank in Switzerland" by Euromoney magazine and "Best Investment Bank in Switzerland" by Global Finance magazine. Additionally, Credit Suisse has been named to Forbes' "Global 2000" list of the world's largest public companies and to Fortune's "World's Most Admired Companies" list.

 

• Credit Suisse Asset Portfolio.

 

Credit Suisse is a global financial services company that offers a wide range of products and services to its clients. The bank's asset portfolio is diverse and includes both traditional and alternative assets. Let's take a closer look at the different types of assets that make up Credit Suisse's portfolio.

 

1. Equities

 

Equities are stocks or shares of ownership in a company. Credit Suisse offers its clients a range of equity products, including individual stocks, exchange-traded funds (ETFs), and mutual funds. The bank's equity portfolio includes investments in a variety of industries and regions around the world.

 

2. Fixed Income

 

Fixed income securities are debt instruments that pay a fixed rate of interest to investors. Credit Suisse's fixed income portfolio includes investments in government bonds, corporate bonds, and other debt securities. The bank's fixed income products provide investors with a stable source of income and are generally considered to be lower risk than equities.

 

3. Alternative Investments

 

Alternative investments are non-traditional asset classes that offer investors diversification and the potential for higher returns. Credit Suisse's alternative investment portfolio includes investments in private equity, real estate, and hedge funds. These investments are generally only available to high net worth and institutional investors.

 

4. Structured Products

 

Structured products are investment vehicles that are designed to provide investors with specific investment outcomes. Credit Suisse's structured products include a variety of products, such as structured notes and certificates, that are linked to a variety of underlying assets, including equities, fixed income securities, and commodities.

 

5. Real Estate

 

Credit Suisse has a significant presence in the real estate industry, both as an investor and as a provider of real estate investment services to its clients. The bank's real estate portfolio includes investments in commercial and residential properties around the world.

 

• The relationship with the Republic of Korea.

 

Credit Suisse has been active in the Korean financial market for many years and has established a strong presence in the country. The bank has a branch in Seoul, which serves as its main hub for operations in Korea. Credit Suisse provides a wide range of financial products and services to its Korean clients, including investment banking, wealth management, and asset management.

 

Credit Suisse has also been involved in a number of significant transactions in Korea over the years. In 2019, for example, the bank acted as a joint bookrunner for a USD 500 million bond issuance by Samsung Electronics, one of Korea's largest companies. Credit Suisse has also been involved in a number of mergers and acquisitions in Korea, including advising on the sale of a majority stake in Korean beauty company Nature Republic to a Chinese private equity firm in 2017.

 

In addition to its business activities in Korea, Credit Suisse has also been involved in a number of philanthropic initiatives in the country. In 2021, the bank announced a partnership with the Korea Association of the Deaf to support education and employment opportunities for deaf individuals in Korea.

 

Overall, Credit Suisse's presence in Korea highlights the bank's commitment to expanding its global reach and providing its clients with access to emerging markets around the world. The bank's activities in Korea also demonstrate its commitment to supporting the economic development of the country and contributing to the communities in which it operates.

 

• The Details about Credit Suisse and Samsung Electronics.

 

In 2019, Credit Suisse acted as a joint bookrunner for a USD 500 million bond issuance by Samsung Electronics, one of the largest companies in South Korea and a global leader in the electronics industry.

 

A bond issuance is a way for a company to raise funds by borrowing money from investors. In this case, Samsung Electronics issued a bond to raise funds for general corporate purposes, such as financing research and development, expanding production capacity, or repaying existing debt. The bond had a maturity of five years and a coupon rate of 2.5%, meaning that investors would receive interest payments of 2.5% per year until the bond matured.

 

Credit Suisse acted as one of the joint bookrunners for the bond issuance, along with a number of other banks. As a bookrunner, Credit Suisse was responsible for helping to market the bond to potential investors and facilitating the sale of the bonds. Credit Suisse likely played a key role in identifying potential investors for the bond, negotiating the terms of the bond issuance with Samsung Electronics, and ensuring that the bond sale proceeded smoothly.

 

By participating in the bond issuance, Credit Suisse provided its clients with the opportunity to invest in a high-quality, well-known company like Samsung Electronics and potentially earn a return on their investment through the coupon payments and/or any potential price appreciation of the bond. At the same time, Samsung Electronics was able to raise funds to support its growth and development plans.

 

Overall, the bond issuance by Samsung Electronics was a significant transaction in the Korean financial market, and Credit Suisse's role as a joint bookrunner highlights the bank's expertise in debt capital markets and its ability to serve as a trusted advisor to its clients.

 

 

• The Board of Directors of Credit Suisse.

 

The board of directors of Credit Suisse is responsible for overseeing the management and strategic direction of the company. The board consists of 13 members, including the chairman and the CEO, and has a diverse range of experience and expertise across a variety of industries and disciplines.

 

As of September 2021, the members of the board of directors of Credit Suisse are as follows:

 

Antonio Horta-Osorio - Chairman

Thomas Gottstein - CEO

Severin Schwan - Vice Chairman

Iris Bohnet

Richard Meddings

Gerald Naber

L. Rafael Reif

Joaquin Ribeiro

John Tiner

Carol Ward

Alexander Wolfgring

Charles Yoon

Helman Sitohang

The board of directors of Credit Suisse is responsible for setting the overall strategy and direction of the company, as well as overseeing the performance of the CEO and the executive management team. The board also approves major corporate actions, such as mergers and acquisitions, significant investments, and major capital expenditures.

 

In addition, the board of directors of Credit Suisse is responsible for ensuring that the company operates in compliance with applicable laws and regulations, and that it maintains appropriate risk management practices and internal controls.