Credit Suisse Group AG shares hit a record low on Wednesday after the bank’s top shareholder ruled out investing any more in the troubled Swiss bank. Jan-Patrick Barnert reports on Bloomberg Television.
#stockmarket #bloomberg #banks #creditsuisse
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Transcript
And Patrick what is the mood the sweat the fear that would be at the Credit Suisse headquarters the thousands of Zurich people working for Credit Suisse what is their angst this morning well that’s that’s hard to say but the interesting thing the thing to me is like whenever I say something critical
About grids within the last couple of days on on TV on radio or or in print then people reached out from from inside Craigslist to me like fiercely fighting for their employer and telling me all kinds about like what they’re trying to do to make uh things going better so it
Shows me that are still like passionate people at credit Swiss um the management so far not so passionate and if you have your stock like tumbling that much uh I mean like I I guess I would be concerned uh working for for the bank because you simply
Don’t know what’s what’s going to happen happen next um especially as this is not an isolated issue anymore we are now moving into a more broader banking recession problem and that’s like that’s why credit space is down 20 and the others are only down eight or ten percent
Um because the bank now has to fight like another fire uh on a Stalin sheet I would say and on its earnings and and that makes the turnaround where we yesterday heard give us three years I would say this three years has now gone to six years maybe John Patrick how
Shocked are you to hear the words from the Saudi National Bank chairman this morning to Bloomberg how shocked were you about that language absolutely not I mean the language was hard when he’s just absolutely not going into this but I mean think about it they took part in the in the capital race
Three months ago it stocks down 50 since said I mean like if you are responsible as a manager everywhere on the world you’re not going like yeah sure let’s ship in another billion um down the road here that’s not going to happen so it makes total sense for me that he says
Like at this point no thank you we have put enough money into this bank now they need to show to make it work and again given all the other stuff happening around the bank why should you take this risk it’s a horrible risk reward profile at this point yeah I’m Patrick right now
I’m looking at the credit default swaps on Credit Suisse which have blown out that means the price that people are demanding to insure against some sort of default and Credit Suisse has gone through the roof to the highest levels that we’ve seen going back uh in history what is the potential consequence of
This for the European banking system are people starting starting to game that out of how this will look well it’s it’s a massive issue and especially for credit Swiss I would say because like now you are getting attacked from all sides you’re getting attacked from uh probably the the
Central banks when they stop hiking rates so all the rates benefits are uh going to fade out then you’re getting attacked from the from the economy economic side uh with like your your loan loss Provisions most likely are going up then you’re getting attacked from your refunding side especially as
Credit Suisse but you have to pay higher rates to to refund your business so this overall is is not great time for for banking stocks and that’s why we are seeing them uh being sold right now the last three to four months everybody was taking a very comfortable position in
The overall Equity Market but especially in European Banks thinking like we get a grinding down of inflation everything is safe we get a soft lending the economy is still doing fine earnings are doing fine and this whole scenario is now gone and that’s why the market reaction is so
Hard in my view because now you have to massively reprise what the economy will look like 12 months down the road and that’s why you see banking stocks no bids there because that’s the first line of defense why would you own this stock moving into such a scenario I I don’t
See it yeah and Patrick do we have any intelligence whatsoever about what wealth management clients are doing right now whether people are trying to withdraw their money or whether they’re staying with Credit Suisse and saying we appreciate the products that you provide and we’re going to be your clients for a
Longer period of time well I guess it doesn’t really matter I mean like if they take away the money or if they just like put it into a safe space the consequence for the Credit Suisse will be the same I’m not so much concerned that they are losing deposits
That have a liquidity issue I would say there are other options in Europe where they can get liquidity from and I’m pretty sure central banks will provide that but the bigger issue here is like no matter what way or well your wealth management clients are doing they will
Reduce risk that means less fees that means less Revenue that means less earnings that means less prospects for the stock price so again why buy the share in in this in this situation no incentive whatsoever
source
Sanctions are WORKING LOL
I just bought this stock….. $1.90
Kevin O'Leary rips President Biden for shoring up SVP instead of letting it collapse, but he's the idiot that had $$$ in SVP in the first place.
It's the same old game every 10 years or so. The rich and the banksters get greedy, screw up, give themselves a bonus as it all burns down then blames the government and Joe Public for their mess.
All these are minor details, it's time for the rest of the world to pay for the Wars that the elites started, it's harvest time, except its not for the general public, we are the payers.
This bank has been on life support since the 2008 melt down. Pull the plug on it.
Thank god I'm poor but happy.
Ukraine! Freedom! Democracy!!! 🇺🇦🇺🇦🇺🇦
Too big to save for the Swiss Government and too big to fail.
It is all good They cannot let it go. They ll inject billions. Markets will rise again 🎉👏💪💪💪
My life has totally changed since I started investing 78k and now earning over 152k just in 15 days
Another financial institution that’s more concerned with E.S.G. than its customers and solvency . My recommendation to anyone that is concerned about their money, is to find a bank that is not a slave to E.S.G.
Every time I see the word Bloomberg, it reminds me of Michael Bloomberg when he paid a half a billion dollars to be scalped by a fake Indian
go to gold
DAMN! He told it like it is no sugar coating! His entire speech in a single word on Credit Suisse = "SUCKS!"
Thank God Joe Biden is President to guide us through this storm 🙏
put your $ in bitcoin!
Final countdown 😂😂😂😂 the song bye bye credit suisse
By coincidence their risk manager worked in FTX.
The reserve ratio should be 100%
SBF is going to prison for life for doing the exact same thing banks are doing
Media host are totally in denial
The incentive to buy, is that everyone else is selling.
Time to get your money out.
Your money in Swiss banks is at risk
Do you have money there? I withdraw everything immediately
Your money in Swiss banks is at risk
RIP credit suisse
I worked in the IT part of Credit Suise from 2007 till 2009, they have a reorganisation every few months, which is a way of the managers always having an excuse for under performance because if they fall short they can blame that on the re-org, which is nonsense when the reason for you under performance is self imposed. I never came across a manage who I thought was good at his job (there wasn't any female managers because I worked in IT). And my team lead was back stabbing scum. I hope Credit Suisse folds.
Remember this day, my friends. Remember this day…
Y doe
Isn’t it down >75% from ATH ?
Our government is a crime syndicate masquerading as a democracy. God help us.
How long has Credit Suisse been on death's door? It seems like it has always been something with Credit Suisse since last century.
FRANKLY ARE THESE JUST COINCIDENCE EVENTS???!!!!!!!:) ——— > RIGHT BEFORE JUST A DAY BEFORE RELEASE OF US JOB DATA MARCH 10TH ——- > SVB CRISIS HAPPENED ALL OF SUDDEN AND NOW RIGHT BEFORE THE ECB RATE HIKING DECISION ON MARCH 16TH TOMORROW < ——- NOW CS PROBLEM IS ALL OF SUDDEN HAPPENING!!!!!!!!!!!!!:) < ——- JUST COINCIDENCE? IN ANYWAY IF US FED + ECB HIKE JUST 25BP OR EVEN STOP THEIR RATE HIKING CYCLE THEN THERE WILL BE MUCH MUCH MUCH MUCH MORE SERIOUS PROBLEMS HURRICAING THEIR ECONOMIES AS I'VE WARNED OF TOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO MUCH DEBT IN THOSE ECONOMIES ESP USA CHINA EUROPE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:)
China appears to be moving assets out of the Western Powers circle of Banking Profits?
Most of the withdrawn funds appear to be from Asian Depositors?
The Former Colonial Powers now seem to have lost their grip on the Colonial World?
As Mexico announced their desire to trade with the BRICS group, the appearance of a BRICS Wall around the former Colonial Powers sems to get a bit taller?
Europe is divided about supporting the Western Powers as the ability to participate in Capitalist Trade practices, now appears to have to pass over that BRICS Wall to get any results, seem to limit the buying power of the Fiat Dollars of the West.
Can the NATO Guys shoot holes in the BRICS Wall before the economic airplane crashes into the BRICS Wall?
Exciting Economic entertainment!
Stay tuned for the next exciting episode as the "Ides of March Economic Program" proceeds to entertain……
US FED HAS TO HIKE ANOTHER 100BP IN COMING MARCH 22ND IF THEY REALLY WANT TO QUELL THE STAGFLATION —— > HOWEVER THEY WILL NOT EVEN 25BP HIKING IS SHAKING THE FINANCIAL SYSTEM!!!!!!!!!!!!:) ——- > AGAIN IT'S A HUGE TIME TO BUY GOLD + ENERGY TO HEDGE AGAINST TOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO MUCH DEBT PROBLEMS!!!!!!!!!!!!!!!!!!!!!!:)
the banks drops and hits a new low record everyday. like OMFG what does it take to say its dead. FFS, the CS is bankrupt. dismantle it, and divide up the bones already. YEESH! Swear there's a new low ever 5 min. 🙄
Huh . .wait . .what about the Basel Accords . . .everybody had a hardon to get banks to classify their risk assets and provision . . .what happened?
Capitalism is at a dead-end, the only way forward is nationalize the banks and major industries under workers' control, set up a socialist planned economy.
Everything is fine.
AGAIN AND AGAIN AS I'VE SAID MANY TIMES SINCE THE END OF JUNE OF 2022YR THAT NOW WHO DENIES THE FACT THAT ——- > S&P 500 INDEX IS GOING DOWN TO THE RANGE OF 3150 – 3350 THIS YEAR!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:)
CREDIT SUISSE IS GOING TO BANKRUPTCY + AS I'VE SAID MANY TIMES THAT MORE AND MORE PENSION FUNDS ARE GOING TO INSOLVENCY ESP IN EUROPE + CHINA + USA!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:)
GOLD IS KING!!!!!!!!!!!!!!!!!!!! CHECK THE US T – DEBT MARKET THAT IS SHOWING VERY VERY MATHEMATICALLY THAT ———- > NO MORE US$ IS THE BIGGEST RESERVE CURRENCY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:) AS I'VE SAID MANY TIMES ALREADY THAT GOLD PRICE WILL BE IN THE 10K$ – 15K$ IN COMING YEARS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:)
AS I'VE SAID MANY TIMES ALREADY THAT USA CHINA EUROPE + JAPAN HAVE TOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO DEBT TO GO FURTHER FROM HERE THAT AGAIN IT IS TOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO LATE TO FIX THE FINANCIAL ENGINEERING PROBLEMS FROM TOOOOOOOOOOOO0000000000000000000000000000000000000 MUCH DEBT (= BONDS)!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:)
Last thing I'd do would move my money to another Titanic like Bank of America, Wells Fargo or big banks. Credit Unions are the best option IMO.
Is 28 per cent bad??
The sanctions have been very effective.