|Bid||0.00 x 28000|
|Ask||0.00 x 3000|
|Day's range||13.06 - 13.24|
|52-week range||10.94 - 14.12|
|Beta (5Y monthly)||1.55|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||0.26 (1.91%)|
|Ex-dividend date||02 May 2019|
|1y target est||17.47|
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Credit Suisse Group AG’s declaration a few years ago that it would quit managing money for rich Americans seemed too crazy to be true: Why would the bank get out of the world’s biggest wealth-management market at the very time its new boss was betting its future on that business?Now, a newly disclosed cache of documents is providing fresh insights into the decision-making behind the scenes as the bank prepared to transfer the wealth business to Wells Fargo & Co.The internal emails and witness depositions, not previously reported, portray top executives in 2015 as eager to offload expensive advisers whose commissions were dragging down the business. They also show how the bank tried to retain its richest clients and left the door wide open to re-enter the market with a different pay structure.“We never agreed never to come back to wealth management,” Chief Executive Officer Tidjane Thiam, still in his first months on the job, wrote to a top executive on the morning of the pullout announcement.That and other internal deliberations were revealed in a dispute with two of the dozens of former Credit Suisse advisers who sued over deferred pay that was withheld because they opted against moving to Wells Fargo. Many of those cases have been fought outside public view, in arbitration proceedings. But after the bank lost one case and appealed that ruling last month, thousands of pages of arbitration documents were made public.Executives of the Zurich-based bank considered the risk that litigation might increase the cost of exiting the business. One of the documents in the cache includes a chart that compares the cost of paying out those compensation claims against the risks of fighting off legal challenges.Indeed, the bank’s tough legal stance in the case against the two advisers could be seen as a calculated bet that any negative publicity from the airing of its disputes would be more than offset by the value of deterring future claims, said Philip Aidikoff, a Beverly Hills securities attorney who represents investors and advisers.“In my experience the reputational risk is overblown,” Aidikoff said. “It comes down to a business decision.”Credit Suisse has said the advisers’ compensation claims have no merit, and it declined to comment on any plans it has to re-enter the business. “There is absolutely no credibility to this story,” said Candice Sun, a bank spokeswoman, without elaborating. “We fully exited our U.S. Private Banking business as announced in 2015.”Wealth management has proved to be a reliable business for U.S. banks, fueled by the growing class of wealthy Americans who have booked 10 years of bull-market gains. Still, Thiam reiterated last week that a full return to U.S. private banking wasn’t on his to-do list.“We are not in the U.S. in wealth management, but that is a strategic choice we made years ago,” he told Bloomberg Television in an interview at the World Economic Forum in Davos. “I said many times on the record our appetite to take on JPMorgan, Bank of America and the others in America is limited.”Strategic ReviewShortly after Thiam took over as chief executive in July 2015, he started a global strategic review of the bank and expressed particular dissatisfaction with its U.S. wealth-management business.The “current U.S. private-banking operation did not meet sufficient profitability,” he told investors in October 2015, a day after Credit Suisse announced it was exiting U.S. wealth management. Thiam said the unit’s pay structure wasn’t sustainable because “value accrues to brokers, not shareholders.”Thiam’s emails show that he wanted to leave room for Credit Suisse to continue to serve some of its wealthiest clients even after transferring the business to Wells Fargo. The San Francisco-based bank has thousands of wealth advisers, as do rivals including UBS AG, Morgan Stanley and Bank of America Corp.In a message on the morning the Wells Fargo deal was announced, Thiam told Robert Shafir, who was the Americas CEO of Credit Suisse, that he wouldn’t agree to give up serving ultra-high-net-worth clients in the U.S. and would continue offering lending and other products to them.“We do not intend to return to wealth management per se,” he wrote, according to the court documents. “We could agree to be silent on that point.”Shafir, who’s now the CEO of Sculptor Capital Management, an asset manager, didn’t respond to requests for comment.Witness TestimonyA key witness in the arbitration was David DeNunzio, a senior mergers and acquisitions executive at the bank who helped Shafir orchestrate the transfer of the business to Wells Fargo. He testified about internal discussions over the future of the wealth unit and an initiative to get rid of it, called “Project Light.”“Are we better off making a clean break, effectively, exiting the business and then coming back into the business, presumably, by acquisition down the road with a different compensation regime? That was really the question that was on the table, so that the salary and bonus model that they had everywhere else in the world would be replicated here in the U.S.,” DeNunzio recalled.Credit Suisse “did not wish to abandon the market from a long-run strategy perspective,” said DeNunzio, who’s now the global head of mergers and acquisitions at Wells Fargo. He didn’t respond to requests for comment.Credit Suisse Sues to Block Arbitration Award to Ex-BrokersProject Light resulted in a deal that included deferred-compensation payments to the advisers who moved to Wells Fargo. But many decided to go elsewhere: Although 111 of the bank’s 336 advisers went to Wells Fargo, 101 chose UBS instead, according to the website AdvisorHub. The defectors were denied compensation that had been deferred until they met certain employment conditions.Richard DellaRusso and Mark Sullivan, the brokers whose case is before the New York court, initially filed their claims with arbitrators at the Financial Industry Regulatory Authority, Wall Street’s self-regulator. While at Credit Suisse, they received a roughly 42% cut of the revenue they generated at the bank, their attorney Barry Lax said. That was close to the industry average for brokerages that pay revenue-based commissions. By contrast, commercial banks often pay financial advisers salaries and annual bonuses.The two advisers joined Credit Suisse in 2008 and, with close to $500 million in client assets, earned “tens of millions of dollars” while at the bank, Lax told Finra. As they departed, they were denied their deferred pay after they chose to go to UBS instead of Wells Fargo.‘Our Stupidity’Some UBS executives had fun at Credit Suisse’s expense as many of its advisers were opting for UBS over Wells Fargo.In an email titled “Credit Suisse Deal,” a UBS managing director, John Decker, wrote that Credit Suisse advisers were joking that “UBS stands for ‘Ultimate Beneficiary of our stupidity’ (Meaning Credit Suisse’s Stupidity) -- (They are starting to grieve),” according to a copy of the message submitted in New York state court. Decker didn’t respond to a request for comment.The advisers seeking payments from Credit Suisse say the bank terminated them without cause, which should have resulted in the vesting of their deferred pay under their employment contracts. Credit Suisse argues that the advisers quit to join UBS and other banks and therefore forfeited their deferred pay. Tens of millions of dollars are at stake, out of the $200 million in deferred pay that was pending when the Wells Fargo deal was announced.There are indications that the bank may be looking to expand its toehold in the U.S. In October, Bloomberg News reported that Credit Suisse was considering a return to wealth management from a new base in Miami, catering to wealthy Latin Americans.\--With assistance from Sridhar Natarajan.To contact the reporter on this story: Neil Weinberg in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeffrey D Grocott at email@example.com, David S. Joachim, Joe SchneiderFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
FRANKFURT/ZURICH (Reuters) - The Credit Suisse spying debacle risks tipping the bank into a crisis that could engulf its top executives. Switzerland's market supervisor is scrutinising Credit Suisse's oversight of chief executive Tidjane Thiam and his top lieutenants as part of a probe into corporate espionage, two people with direct knowledge of the investigation said. FINMA is examining whether management control failures led to Switzerland's second-largest bank snooping on two former executives, they said.
German agriculture group BayWa is in advanced talks with Credit Suisse over the sale of a minority stake in its renewables business for a potential value of 2 billion euros (£1.6 billion) including debt, two people familiar with the matter said. BayWa has for months been seeking a buyer of a stake in BayWa r.e. BayWa said negotiations continue, but declined to be more specific.
Carbon neutrality will come at a steep price. Here's what Credit Suisse CEO Tidjane Thiam said on the topic at the 2020 World Economic Forum.
Zacks.com featured highlights include: Credit Suisse, Amkor Technology, Oasis Midstream Partners, Tech Data and NV5 Global
Credit Suisse still has questions to answer about its surveillance activities which came to light last year, the head of Switzerland's financial watchdog on Thursday. "The use of external security companies is not a supervisory issue per se," Thomas Bauer, chairman of FINMA said. "For us it [the Credit Suisse spying affair] is a case about which we still have questions," Bauer added.
(Bloomberg) -- Credit Suisse Group AG has stopped working on the upcoming U.S. initial public offering of Chinese gay dating app Blued, according to people familiar with the matter.Credit Suisse joins other investment firms, including Citigroup Inc. and Bank of America Corp., that in recent months have dropped off the U.S. debuts of high-profile Chinese companies. The Swiss bank has halted work on a number of U.S. listings by Chinese companies, as concerns grow about a potential sector downturn and level of investor demand. Since the summer, Credit Suisse’s name has vanished from the listing documents of podcast app Lizhi Inc., bitcoin mining machine maker Canaan Inc. and drone company EHang Holdings Ltd., the filings show.It wasn't clear why Credit Suisse dropped off Blued’s IPO, but it did so before the company filed publicly, as opposed to Lizhi, Canaan and EHang. Blued founder Geng Le didn’t immediately respond to an email query during non-business hours. A spokeswoman for Credit Suisse declined to comment.Read more: Gay Dating App Blued Said to Plan U.S. IPO at $1 Billion ValueFounded in 2012 by former policeman Geng, Blued has become an icon for the Chinese LGBTQ community and attracted more than $130 million in venture capital as of March last year. Besides providing dating services to 40 million users, the app also offers live streaming and connects men who want to become parents with overseas surrogates. The services are part of Blued’s larger strategy to diversify its business and generate revenue.Blued has said it’s eyeing an IPO ideally in the U.S., which offers a simpler process and deeper capital markets. The trick for Geng will be convincing investors he can expand his operations in a country where gay people have few legal protections and every new service pushes the frontiers of government tolerance and social acceptance.Read more: The App That’s Helping Gay Couples Have Kids in ChinaCitigroup and Bank of America stopped working last year on the listing of Ucommune Group Holdings Ltd., the largest rival to WeWork in China.U.S. listings by Chinese companies in 2019 were plagued by poor performance and pared-down fundraising targets, which in turn has dented investor demand already weakened by U.S.-Chinese trade tensions. Shrunken deal sizes mean the fee pool also gets smaller, making deals less attractive to banks.The 33 Chinese companies that listed in the U.S. last year have dropped by an average 13% from their IPO price, and only 9 of them have risen since their floats, according to data compiled by Bloomberg.To contact the reporters on this story: Julia Fioretti in Hong Kong at firstname.lastname@example.org;Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Lianting Tu at firstname.lastname@example.org, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
The imminent danger posed by climate change means activists were not guilty of trespassing when they occupied a Swiss bank and played tennis to demand an end to funding of fossil fuel projects, a judge ruled on Monday. Wearing whites and wigs, a group of young people staged the tennis sit-in at the Lausanne branch of Credit Suisse in November 2018 to highlight their campaign and urge Swiss maestro Roger Federer to end his sponsorship deal with the bank. The activists were charged with trespassing and fined 21,600 Swiss francs (£17,135.85), but in their appeal hearing on Monday Judge Philippe Colelough said they had acted proportionately and waived the fine.
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A private investigator from the firm tasked with tailing former Credit Suisse banker Iqbal Khan has countered Khan's legal action with criminal complaints against the banker, his wife and the police, Swiss prosecutors said on Wednesday. Khan, who left Credit Suisse in July to became rival UBS's co-head of wealth management, filed a criminal complaint in Switzerland following a confrontation with private detectives tailing him and his wife on Sept. 17. The scandal led to an investigation by Switzerland's bank watchdog into Credit Suisse's conduct and criminal proceedings in Zurich which remain ongoing.
The young activists, mostly students, were fined 21,600 Swiss francs (16,973 pounds) for trespassing at Credit Suisse branches in November 2018. Lawyers for the students who are appealing the fine said on Tuesday they were acting as whistleblowers for the climate emergency.
Russian bank VTB is suing a Mozambique state-owned company over $535 million it extended as part a series of loans now at the centre of a $2 billion debt scandal. An online court filing dated Dec. 23 shows VTB has lodged a lawsuit in Britain's High court against the Mozambique state and Mozambique Asset Management, which borrowed the money from VTB as part of a costly project that U.S. authorities say was an elaborate front for a bribery and kickback scheme. VTB had been in talks with the southeast African country over restructuring the loan, which the deputy head of VTB Capital's legal department said in October represented a "significant exposure" for the bank.
Margarita Louis-Dreyfus borrowed $1 billion from Credit Suisse last year to buy out minority shareholders of Louis Dreyfus Company (LDC), pledging her majority stake in the commodities trader as collateral, a company filing showed. LDC's chairwoman, who assumed control of the 169-year-old business in 2009, faces a requirement to buy shares from family minorities wishing to sell under a long-term arrangement established by her late husband Robert. LDC had previously indicated that she had obtained a bank loan to finance the buyout, without giving details.