How Credit Suisse collapsed, in six charts

by | Dec 19, 2023 | Stock Market

Credit Suisse’s collapse in March this year sent shockwaves through the global financial system. The 167-year-old bank, which was formerly one of Switzerland’s two top lenders, had previously weathered the financial crisis of 2008. Yet by March 2023, Credit Suisse had found itself in an unmanageable crisis that led to its acquisition by Swiss rival UBS
UBS,
+5.33%
for 3 billion Swiss francs ($3.5 billion) in a deal brokered by the Swiss state in a bid to avert a global financial crisis.

Now, in a new report published on Tuesday, Switzerland’s financial regulator has given its verdict on why Credit Suisse ended up in the situation it found itself in. Here are six key charts from the Swiss Financial Market Supervisory Authority, or FINMA, report that explain what happened. Share price A series of scandals and major financial losses saw Credit Suisse suffer repeated hits to its share price in the years following the 2008 financial crash. These scandals undermined confidence in the bank, making it harder for Credit Suisse to either attract customers or raise capital from investors and public markets. The bank’s steady decline saw the value of shares in Credit Suisse drop sharply over a 15-year-period, from all-time highs of 96 Swiss francs in Apri …

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[mwai_chat context=”Let’s have a discussion about this article:nnCredit Suisse’s collapse in March this year sent shockwaves through the global financial system. The 167-year-old bank, which was formerly one of Switzerland’s two top lenders, had previously weathered the financial crisis of 2008. Yet by March 2023, Credit Suisse had found itself in an unmanageable crisis that led to its acquisition by Swiss rival UBS
UBS,
+5.33%
for 3 billion Swiss francs ($3.5 billion) in a deal brokered by the Swiss state in a bid to avert a global financial crisis.

Now, in a new report published on Tuesday, Switzerland’s financial regulator has given its verdict on why Credit Suisse ended up in the situation it found itself in. Here are six key charts from the Swiss Financial Market Supervisory Authority, or FINMA, report that explain what happened. Share price A series of scandals and major financial losses saw Credit Suisse suffer repeated hits to its share price in the years following the 2008 financial crash. These scandals undermined confidence in the bank, making it harder for Credit Suisse to either attract customers or raise capital from investors and public markets. The bank’s steady decline saw the value of shares in Credit Suisse drop sharply over a 15-year-period, from all-time highs of 96 Swiss francs in Apri …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]

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