Angry investors in the United States have sued Credit Suisse after the Swiss bank’s substantial loss of market value. They claim that the Financial Group presented its own operations too brightly in the annual report for 2021. In it, Credit Suisse made no mention of deficiencies in internal controls, which later came to light.
Credit Suisse shares lost nearly 16 percent on February 9 after fourth quarter results were announced. In this, the bank suffered a loss of more than 2 billion, partly due to the many costs that the company had to incur in the wake of a number of scandals. At the beginning of March, Credit Suisse’s price dropped further after the news that the annual report for 2022 had been delayed due to ” significant weaknesses in the internal control of the financial reporting.’
The law firm that assists investors in the lawsuit was also involved in the first lawsuit against Silicon Valley Bank, which went bankrupt last week and was taken over by US government agencies. In addition to Credit Suisse, Chairman Axel Lehmann is also a defendant. Investors blame him for stating in the media that the outflow of funds “more or less stopped,” when in fact the bank still saw a lot of money and customers flowing away.
Concerns about customers taking their money away from Credit Suisse dealt an unprecedented hard blow to the bank on the stock exchanges this week. After the central bank of Switzerland pledged its support for the country’s second largest bank, the rate partially recovered again.
The nervousness around the banking sector has increased sharply in the past week after the bankruptcy of two medium-sized banks in the United States, Silicon Valley Bank and Signature Bank.
About the author: Jeff Roper
Jeff Roper has been teaching journalism for more than five years. A theorist who nevertheless took up some practice. He is fond of the history of journalism and journalism.