New fears for the stability of the global financial system rattled markets on Wednesday, after Credit Suisse acknowledged it found “material weakness” in its financial reporting, adding uncertainty to the already jittery banking sector in the wake of Silicon Valley Bank’s collapse.
“Credit Suisse is in principle a much bigger concern for the global economy than the regional U.S. banks which were in the firing line last week,” Andrew Kenningham, chief Europe economist with Capital Economics, said in a research note Wednesday. “Credit Suisse is not just a Swiss problem but a global one.”
In its annual report released Tuesday, the Swiss bank said it found “material weaknesses” relating to the bank’s “failure" to appropriately identify the risk of misstatements in its financial reporting. It added it had failed to maintain effective monitoring over the bank’s “internal control objectives” and “risk assessment and monitoring objectives.
The Swiss bank had delayed releasing its annual report after the U.S. Securities and Exchange Commission asked for more information last week about past cash flow statements.The bank previously has disclosed that it suffered significant customer withdrawals in October. It repeated that information in its annual report, saying that “significant deposit and net asset outflows in the fourth quarter” undermined the bank’s full-year financial results.
Financial stocks have been shaky ever since, and regulators shuttered Signature Bank on Sunday. To stave off a broader panic, U.S. authoritiesthey would be made whole. Regional U.S. bank stocks fell sharply on Monday and then rebounded on Tuesday. But the Credit Suisse news on Wednesday, a sign that banking sector issues aren’t confined to U.S. banks, appears to have rattled investors in banks again.
ignaziocassis Do we have to pay as citizens for a bank that is in bad shape for years and where it’s own major shareholder said stop ? The damage to the country’s reputation is money too. In a time of economic crisis. laissezfaire freemarket
Do you believe banksters when they say things?
No it won’t. Suisse is to large for National Bank to bail out.. this is really bad. But they knew this for years the ponsi scheme is over and we are headed for a depression world wide.
So in other words, Credit Suisse is in huge trouble
one simply cannot trust junky america ,there needs to be an intervention
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