Credit Suisse, the second largest Swiss bank, already in serious difficulties, foresees for ithe fourth quarter a pre-tax loss up to 1,5 billion Swiss francs (1,58 billion euros), while preparing to ask today, the shareholders gathered in extraordinary assembly, the authorization for a capital increase 4 billion dollar monster.
"In its forward-looking statement, the bank stressed that the difficult economic and market environment had a negative impact on business across its divisions," the Swiss bank said, according to Reuters news agency.
Credit Suisse had set at 4,07 francs the reference price for the capital operation aimed at qualified institutional investors, a price corresponding to the volume-weighted average price of the shares on the Swiss Stock Exchange on 27 and 28 October.
“In particular the investment bank has been affected by the substantial slowdown in the capital markets and reduced activity in its sales and trading businesses, exacerbating the Group's normal seasonal declines and related underperformance,” the bank added. Client activity was subdued in the Wealth Management and Swiss Bank divisions and the bank expects these market conditions to continue in the coming months.
Also, they accelerated into the beginning of the fourth quarter i cash outflowsthe bank said again.
At group level, as of 11 November, i net outflows of assets they were around 6% of assets under management at the end of the third quarter. In the Wealth Management, outflows have “substantially” reduced from the high levels of the first two weeks of October, but have not yet reversed, reaching around 10% of managed savings at the end of the third quarter of 2022.
"Operation Save the CS" to contain the presence of Arab investors
But today's meeting will not only serve to try to save the bank from bankruptcy, but will also have the mission of saving the second largest Swiss institution from what some see as excessive interference in the capital of the Saudi National Bank, intending to invest 1,52 billion dollars. Thus the institute is controlled by the Riyadh monarchy, i.e. by the autocrat Mohammed bin salman, would arrive at hold 9,9% of the struggling Swiss banking giant.
According to the Zurich financial information portal Inside paradeplatz, there would be an ”Operation save CS”, driven by ubs, historic opponent of Credit Suisse, who would like to involve other important ones financial actors of the Confederation, with the aim of raise $2 billion, therefore a higher figure than the Saudis would make available, preventing them from becoming the second largest shareholder of Credit Suisse.
The first shareholder is the US investment company, Harris Associates, which holds 266 million shares of the Swiss bank, which corresponds to 10% of the share capital.
But in the capital there is also the sovereign wealth fund of Qatar which has a 5% stake in Credit Suisse. Participation which, at the beginning of November, he announced his intention to increase.
The "Rescue Credit Suisse" operation would serve to limit the participation of Arab investors in the Swiss bank.
