Battered by years of scandals, Credit Suisse seeks $4bn in funding

Published

2 years ago

October 28, 2022

Reuters

Battered by years of scandals, Credit Suisse unveils plans to raise 4 billion Swiss francs by selling stock while slashing thousands of jobs

Battered by scandals, Credit Suisse said it would take drastic measures to recover from a heavy run of losses.

The lender plans to raise $4 billion by selling stock.

It will also cut thousands of jobs and spin off its investment bank.

The Swiss lender has been hit by years of scandals and made a $4 billion loss in the third quarter.

That was due in large part to write-offs linked to its investment banking overhaul.

The lender called its plan a “blueprint for success”.

Investors were not convinced, though, and the bank’s stock dropped around 14% early Thursday.

Credit Suisse said clients pulled funds in recent weeks at a pace that saw the lender breach some regulatory requirements for liquidity.

The group added that it was stable throughout.

The turnaround plan has many elements – it will cut 2,700 jobs or 5% of its workforce by the end of this year.

The Swiss bank said it also aims to separate out its investment bank.

It will focus on advisory work like mergers and acquisitions, and arranging deals on capital markets.

Saudi National Bank said it would invest up to $1.5 billion in Credit Suisse.

The latest revamp is the third attempt in recent years by successive CEOs to turn the group around.

Why the meme-stock frenzy is unlikely to repeat

Published

6 days ago

May 14, 2024

Nathan Langridge

GME shares surge 74%, but experts stress a meme-stock frenzy resurgence is unlikely due to fundamental differences in the company’s financial situation.

Australia’s budget unveils a second consecutive surplus of A$9.3 billion, prioritising the critical minerals industry and green energy initiatives to reduce reliance on Chinese supply.

Also, GameStop shares have surged 74%, but experts caution against expecting a repeat of the 2021 meme-stock frenzy. #featured #trending

Money

Why are airlines after the Biden Administration?

Published

6 days ago

May 14, 2024

Nathan Langridge

Major airlines are taking legal action against the Biden administration over a newly implemented rule requiring them to disclose fees upfront.

On this episode of Hot Shots – Major airlines are suing the Biden Administration, AI-piloted fighter jets, SpaceX faces funding challenges, and Apple receives crushing feedback.

Ticker’s Ahron Young & Veronica Dudo discuss. #featured #trending

Money

The mounting pressure on Government spends

Published

7 days ago

May 13, 2024

ticker NEWS

Questions abound regarding the factors fueling this inflation surge in Australia and whether it correlates with the escalating government expenditures.

Concerns extend to how Chalmers navigates the mounting pressure amid discrepancies in spending allocations.

Moreover, as Australians grapple with the reality of rising living costs, the feasibility of cutting spending becomes a pressing issue. Additionally, amidst economic uncertainties, individuals seek guidance on managing stock market risks effectively. #Featured #Trending