Banking giant Credit Suisse is getting help from the Middle East. Both the government of Saudi Arabia and that of Qatar are willing to invest extra in the ailing Second bank of Switzerland. After a series of scandals, he urgently needs money to stay afloat. The flip side of the coin is that investors from the Oil States together get about 20 to 25 percent of the institution.

Over the past few years, Credit Suisse has been embroiled in scandals. For example, the bank was involved in the collapse of the Australian Greensill. That had sold her as an investment receivables from invoices, on which postponement of payment had been granted. But when the Bills were finally not paid, the bank was left with a hangover. In addition, she lost a lot of money in the collapse of the American hedge fund Archegos and was involved in various money laundering operations, corruption and even in an espionage case. She was then acquitted of a charge of manipulating exchange rates.

The various scandals ultimately cost the company billions in lost investments and fines.

During the just past third quarter, Credit Suisse fell into the red for 4.0 billion francs, about 4.1 billion euros. That brought the malus to 5.9 billion francs for the first nine months. Last year, she posted a profit of 435 million francs over the same period.

All this is also reflected in the share price of Credit Suisse on the Zurich stock exchange. In 2007, almost 89 francs were still paid for a single share of the bank. Now that same effect is only worth a little more than 4 francs.

The global market capitalization of the bank, which was founded in 1856 to finance the expansion of a railway network in Switzerland, currently amounts to 11 billion francs or about 11.2 billion euros. For comparison, KBC’s market capitalisation is EUR 20.9 billion.


About the author: Nick Schramm

Nick Schramm is tech savvy with strong engineering education behind. His interest in sciences helps the whole WeeklyNewsReview stuff to keep informed about various topics of the modern technology.

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