Time, money and options are fast running out for Switzerland’s second largest lender, Credit Suisse.
After a string of hugely costly, self-inflicted crises (sound familiar?), Credit Suisse appears to be in the process of prising the mantle of Europe’s most troubled systemic lender from Deutsche Bank, which the German bank has held for most of the past decade. As the Wall Street Journal noted a few days ago, “Credit Suisse has taken pole position in a race to the bottom among big, but weak, European banks.”
The scandal-splattered bank has already reported losses of over $2 billion in the first half of this year, significantly under performing expectations as revenue at its investment bank has continued to plunge. That was after reporting an annual loss of $1.7 billion in 2021. Since the second quarter of 2021 CS’ asset base has slumped in value from $941 billion to $753 billion.