One of Switzerland’s biggest banks, Credit Suisse, has identified “significant weaknesses” in its financial statements for 2021-2022. On this subject said in the organization’s annual report. Against the background of the collapse of three major US banks and Credit Suisse’s own problems, the failure of the Swiss bank has already been predicted.
Credit Suisse was due to publish its annual report on March 9, but postponed publication after claims by the United States Securities and Exchange Commission. The regulator, in particular, questioned the bank’s free cash flow reports for 2019 and 2020.
According to a Credit Suisse report, the bank’s management found internal control over financial reporting ineffective because it failed to properly assess and identify potential risks.
Auditing firm PricewaterhouseCoopers, which audited the Credit Suisse reports, came to the same conclusion, the report said.
At the same time, the bank stressed that the deficiencies identified did not affect the organization’s financial results for 2022, which Credit Suisse ended with a loss of 7.3 billion francs (7.9 billion dollars). ). This is its worst performance since the global financial crisis of 2008.
Credit Suisse management is developing a “correct plan” for the situation and intends to strengthen the risk management system, the document says.
Axel Lehmann, chairman of the board of directors of Credit Suisse, refused to pay 1.5 million Swiss francs ($1.6 million) due to a record loss in 14 years, which he was supposed to receive for the first year of his term.
Investor warns of Credit Suisse collapse
Robert Kiyosaki, an American investor and analyst, author of the bestselling book Rich Dad Poor Dad, believes that Credit Suisse will collapse after the big American banks Silicon Valley Bank, Signature Bank and Silvergate Capital.
“The problem lies with the bond market and, according to my predictions, <…> the next bank is Credit Suisse,” informed Kiyosaki at Fox Business.
In 2008, Kiyosaki predicted the collapse of financial holding company Lehman Brothers.
Axel Lehmann, Chairman of the Board of Directors of Credit Suisse, said in turn that the problems of the Swiss bank are incorrect to compare with the collapse of Silicon Valley Bank, since these organizations are regulated in different ways, transmits Bloomberg. According to Lehmann, Credit Suisse management is already taking the necessary steps and successfully implementing the restructuring program.
In March, three major banks in the United States immediately ceased operation – Silvergate Capital, Silicon Valley Bank and Signature Bank. The Silicon Valley Bank collapse was the largest in the United States since the 2008 financial crisis. Following the incident, US President Joe Biden addressed the nation with an emergency appeal, in which he assured Americans of the security of the country’s banking system. He promised to punish those responsible for bank failures and said taxpayers would not suffer losses. On March 14, the international rating agency Moody’s lowered the rating of the American banking system from stable to negative in its report.
Will another financial crisis erupt due to collapse of major US banks, RTVI sorted here
