is deeply influenced by Hong Kong gambling movies. When talking about the safest banks in the world, most people will blurt out: Swiss bank . And now the Swiss bank is in trouble.
In fact, "Swiss Bank" is not a specific bank. It is a general term for banks headquartered in Switzerland . It is distinguished from other large banks because of its strict confidentiality regulations.
The one in crisis is Credit Suisse, which is the second largest bank in Switzerland after UBS Group. It has a history of 165 years and is one of the top ten large-scale investment institutions in the world.
, a 165-year-old Credit Suisse
, which bets on the brink of crisis by Australian media, continues to soar, and has now risen to its highest level since the financial crisis in 2008. The market is facing another Lehman moment.
Credit Suisse has been plagued by a series of scandals in recent years, including Archegos fund liquidation, Greensill corporate bankruptcy and illegal money laundering scandals, which not only damaged its reputation, but also seriously dragged down its company's performance, causing its stock price to fall by more than 60% this year.
In March 2021, the hedge fund Archegos managed by Bill Hwang, the manager of Korean hedge fund , lost $10 billion in a single day, creating the largest single-day loss in human history, and accumulated a total loss of more than $20 billion in the following 10 days.
Bill Huang manages hedge funds of about $15 billion. Due to the nature of its family office, it is almost not regulated by the US Securities and Exchange Commission. Therefore, by Bill Huang leveraged more than 5 times the leverage by raising funds from investment banks, making its total asset size and risk exposure reach as much as US$80 billion.
Bill Huang has a heavy holding of Chinese stocks listed in , including Baidu , Tencent Music, GSX, iQiyi and Vipshop , etc., but due to China's rectification of extracurricular training and the Internet industry at that time, Chinese stocks listed in ranks continued to fall. Finally, by the end of March, the stock price broke through Bill Huang's closing line, causing heavy losses to major investment banks that raised funds from them.
Bill Huang, who has been imprisoned, is the worst investment bank, losing $5.5 billion in this liquidation, and the company's net profit in 2019 and 2020 was only US$3.7 billion and US$2.9 billion respectively. is equivalent to losing two years of net profit.
The disaster is not the same. In the same March, Credit Suisse, a British fintech company, filed for bankruptcy, which provided $10 billion in financing, and Credit Suisse has to return at least $5.9 billion to investors.
These two failed investments resulted in Credit Suisse losing $1.7 billion in 2021. If the above two incidents clearly show that Credit Suisse has problems such as excessive expansion, poor management and poor risk control, then its crime of participating in money laundering makes people glad it has reached this point today.
In June this year, Credit Suisse was convicted by the Swiss Federal Court for participating in drug dealers' money laundering case, becoming the first bank in Swiss history to be convicted. Not only drug dealers, Credit Suisse has long provided money laundering services to human traffickers, corrupt officials and criminals.
Marx said that if there is 300% profit, capital will dare to trample on all laws in the world. These people wear suits and ties, look well-dressed and look handsome, and they do the dirtiest and shameless business behind their backs.
At this time, I just want to give it the famous quote from Jackie Chan : It depends on when you will finish.
Credit Suisse is still making the final struggle. According to media reports, it has formulated a plan to split its investment banking business into three parts, namely consulting business, bad debt banks that deal with non-performing assets, and other businesses. Credit Suisse hopes to become a capital-light investment bank that focuses on wealth management and banking again.
However, Credit Suisse's operating conditions are still deteriorating. Credit Suisse lost 277 million Swiss francs in the first quarter of this year. In the second quarter, without major negative news, the loss suddenly expanded to 1.592 billion Swiss francs, a decrease of 475% month-on-month and a decrease of 745% year-on-year. is the third consecutive quarter of Credit Suisse's loss.
This shows that Credit Suisse is gradually losing the trust of investors, major customers and shareholders. Although Credit Suisse's CEO is constantly appeaseing the market, rumors about its impending bankruptcy are still heard in the market.
is expected to be automatically implemented in the financial market. If Credit Suisse cannot get Wall Street or the Swiss government's rescue, its bankruptcy is only a matter of time.
Credit Suisse crisis is by no means an isolated incident. Just like the Lehman Brothers back then, we seem to have come to a key node in history again. Will this time, be different?
