A few words about Credit Suisse

The markets are still digesting Credit Suisse’s de-facto bankruptcy, which was avoided at the last moment with the help from UBS. However, before we delve into that it might make sense to first review the history of scandals that have been plaguing the bank for a while.

Credit Suisse, one of the largest banks in Switzerland, has recently been embroiled in a number of scandals that have caused significant reputational damage to the institution. These scandals have ranged from unethical business practices to allegations of fraud and have had a profound impact on the bank’s operations and reputation.

One of the most high-profile scandals involving Credit Suisse was the revelation that the bank had been involved in facilitating tax evasion. In 2014, the US Department of Justice launched an investigation into the bank’s operations, and it was discovered that Credit Suisse had been helping wealthy Americans to evade taxes by setting up secret accounts in Switzerland. The bank eventually agreed to pay a $2.6 billion fine to settle the case, and several executives were also charged with criminal offenses.

More recently, Credit Suisse has faced criticism for its role in the collapse of Greensill Capital, a UK-based financial services company. Credit Suisse had been a key backer of Greensill, providing funding to the firm through a number of investment funds. However, when Greensill filed for insolvency in March 2021, Credit Suisse was left with significant losses and has since been embroiled in a legal battle with the firm.

In addition to these high-profile scandals, Credit Suisse has also faced criticism for its culture and business practices. In 2019, the bank was hit with a $47 million fine by Swiss regulators for failing to properly oversee its anti-money laundering procedures, and in 2020 it was accused of spying on its own employees.