The billionaire flight of resources that almost broke Credit Suisse revealed by the bank’s latest balance sheet

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The announcement gives an idea of ​​the extent of the outflow of client assets that triggered the Swiss bank bailout. The billionaire flight of resources that almost broke Credit Suisse revealed by the bank’s latest balance sheet. Reuters via BBC Credit Suisse has revealed the scale of the outflow of client assets that led to the Swiss government-backed rescue of the bank in March. The financial institution reported that 61.2 billion Swiss francs (approximately R$ 345 billion) were withdrawn from the bank in the first three months of the year. The amount was disclosed in what may become the institution’s last financial statement. Its forced sale to competing Swiss bank UBS is expected to close soon. In the wealth management division of Credit Suisse, the value of assets under management fell to 502.5 billion Swiss francs at the end of March, an amount almost 29% lower than that recorded in the same period last year, said Credit Suisse in a statement. . READ MORE Understand the impacts of Credit Suisse on European banks and the risk of crisis in the sector After the failure of two banks, First Republic receives help from US creditors “These exits have moderated, but have not yet been reversed on April 24, 2023″, added. Credit Suisse customers started pulling money out of the bank after it was hit by the market turmoil that followed the collapse of Silicon Valley Bank and Signature Bank in the US in March. In Switzerland, authorities have prepared a rescue plan for Credit Suisse. It included more than 200 billion francs in financial guarantees and provided for UBS to agree to take control of Credit Suisse. Credit Suisse had been losing money and faced a series of problems in recent years, including allegations of money laundering. The bank recorded a loss of 7.3 billion Swiss francs in 2022 – its worst year since the 2008 financial crisis – and had warned that it did not expect a profit until 2024. Commenting on the institution’s latest financial statement, Frances Coppola, analyst independent bank, told the BBC’s Today program that billions had also been withdrawn from Credit Suisse in the last three months of 2022. [retiradas] this quarter added to that. And banks don’t survive capital outflows like that, they really don’t, no matter how big they are.” Shanti Kelemen, chief investment officer at M&G Wealth Investments, said that because of the bank’s size, the outflows “would be a huge number “. “If we confirmed anything today, that’s what UBS bought.” The failures of Silicon Valley Bank and Signature Bank in the US came after the value of the assets they held fell sharply as a result of rising interest rates. Bank shares around the world fell sharply amid concerns that other lenders could face similar problems, and investors rushed to withdraw their money from the already troubled Credit Suisse. Since then, worries about other banks have eased, but Coppola says they could still struggle. “I think we’re going to see more bank turmoil. Whether they’re going to affect big banks like this one, I don’t know.” Switzerland’s prosecutor’s office has opened an investigation into the sudden acquisition of Credit Suisse, the country’s second-largest bank, by UBS. The deal has angered taxpayers and shareholders in both the banks, who were deprived of a vote on the takeover Some also argued that it harmed Switzerland’s global reputation as a financial center When the deal was announced, Credit Suisse was valued at $3.15 billion, while on the previous Friday when the deal closed, it had been valued at around $8 billion.

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