This page has been archived and commenting is disabled.
Moody's Puts Credit Suisse On Downgrade Review
Hmmm: Who is the Swiss PM and who is the Goldman Sachs advisor for Switzerland?
From Moody's:
New York, November 14, 2011 -- Moody's Investors Service has placed on review for downgrade the long-term ratings of Credit Suisse Group AG (senior at (P)Aa2) and subsidiaries, including subsidiaries Credit Suisse AG (deposits and senior debt at Aa1, bank financial strength rating at B) and Credit Suisse International (deposits and senior debt at Aa1). The short-term ratings of Credit Suisse AG (Prime-1), Credit Suisse Group AG ((P)Prime-1), Credit Suisse International (Prime-1), and affiliates were affirmed.
RATING RATIONALE
The rating action follows Credit Suisse's announcement that it had a pre-tax loss of CHF0.8 billion, excluding fair value gains on its own debt due to widening of credit spreads, for the third quarter of 2011.
Credit Suisse also reported that its Investment Banking segment had a pre-tax loss of CHF681million (excluding fair value gains and losses on its own debt), and its Private Banking segment also suffered a sharp decline in pre-tax profits, down 14% from the second quarter and 21% from a year ago (excluding provisions for litigation charges in Wealth Management related to US and German tax matters).
Moody's stated that Credit Suisse's results were weaker than expectations, and highlighted the challenges that the bank faces in the current environment. Although the appreciation of the Swiss Franc against the US dollar has put some pressure on the bank's results, much of the decline was driven by the overhang of macroeconomic uncertainty and the adverse impact of illiquid markets during the quarter on fixed income sales and trading revenues. Moody's also noted that despite steps taken to strengthen its client-facing trading franchise over the past two and a half years, Credit Suisse's fixed income sales and trading revenues suffered a more significant year-over-year decline than many of its peers. The rating agency believes this reflects the bank's greater reliance on credit and mortgage trading, and its relatively weaker positioning vis a vis peers in foreign exchange and rates. The bank's quarterly results have been more volatile than similarly rated peers and its year-to-date returns relative to risk-weighted assets are weaker.
The rating agency noted that Credit Suisse has demonstrated consistent strength in risk management since the start of the financial crisis, has significantly lowered its risk appetite, and has maintained robust liquidity and strong regulatory capital ratios throughout. "Credit Suisse is among the highest rated banks in the world today. The bank's numerous strengths left it well positioned relative to peers during and in the immediate aftermath of the financial crisis," said David Fanger, Moody's Senior Vice President. "However, we believe that the challenges the bank now faces, and the re-engineering those challenges will require, increase the risks to bondholders relative to other similarly rated companies such that a lower rating may be more appropriate."
Credit Suisse has announced plans to refine its Investment Banking strategy and modestly re-position its Private Banking business. This is the second strategic realignment Credit Suisse has undertaken in its Investment Bank since 2008 and in Moody's view the need for a second initiative highlights the continuing challenges faced by Credit Suisse in its Investment Banking division. "We believe the need for further restructuring is driven by both the continuing macroeconomic uncertainty and the increased pressure on shareholder returns that is likely to result from higher regulatory capital requirements," said Mr. Fanger.
"While this pressure also exists at many of Credit Suisse's peers, we believe Credit Suisse is more challenged due to its mix of business," he added. "As a result of the declining profitability of the bank's Wealth Management businesses, stemming from the strong Swiss Franc, low interest rate environment and cautious client behavior, Credit Suisse has become more reliant on its investment banking business, at a time when that business is also under significant pressure."
Moody's review will focus on the restructuring steps announced by Credit Suisse and its implementation, as well as on the underlying profitability trends, particularly in its Investment Banking and Wealth Management divisions, going forward.
»
- 8464 reads
- Printer-friendly version
- Send to friend
- advertisements -
the Swiss ain't what they used to be...
What did they used to be?
A haven for drug money
this status taken over by Guernsey, Cayman, Delaware, singapore, etc.
Free.
You nailed that one Tmoseley. And CS is one of the big reasons the Swiss are no longer free. They have been sold out to the banks who have in turn sold out the country to the US fiat empire. Its like going into business with the mob, once you are in you can never get out. CS and UBS both belong to the US banking system, both having also sold out Swiss financial privacy by revealing clients to the mob, er IRS.
Credit Suisse Cheese is even getting downgraded. Its all holes and no cheese.
Bullish for someone somewhere just like every other piece of bad news.
I dated a Swiss au pair, one of the horniest, most perverted dirty girls I've ever met while I was living in England. And she was all holes and smelled like bad cheese, too.
Is Phil Gramm involved in the cheese industry now, too?
Switzerland does not have a PM, prime minister, they have 7 Bundesräte, where a Bundespräsident is acting as primus inter pares.
It was more of a "rhetorical" inquiry...
I LOL'd when I saw it, Mission Accomplished.
does the goldman replacement have to be a swiss citizen? inquiring minds and such
Okay, so queue up seven former Goldman advisors. It's just logistics.
this is getting REAL....
BITCHEZ!
its real simple...
bonds= trash!
physical PM's= stability
I think "physical PM's= stability" is a bit of a stretch. I see it more like a safety belt. Hitting the brick wall at 60 mph is still going to hurt, but at least I have some odds of walking away. As for those without safety belts ...
Just important to note this is going to be a historic level of suck on a global scale and there is no "easy ride" to the other side.
Regards,
Cooter
True, but more true is:
bonds = liens on real assets the banksters want to acquire.
Step #1 drown world in sovereign debt
Step #2 Austerity involving selling of real assets and collateral eg Gold, real estate and other resources
Step #3 tank global economy mass default on bonds
Step #4 Introduce new global fiat regime and one world government via G-20, IMF and of course the BIS
Step #5 no more need for profit, mission accomplished.
Oh and if step #1 is resisted due to say Sharia laws against usury just to pull out a random example from one's hat, why that's what all those tanks and bombs are for. That and most importantly psy-ops and propaganda machines. Oil gotten through debt is much easier to acquire. Those who resist debt shackles will meet physical persuasion. Until of course humanity wakes up to this and transcends this madness.
Peter Sutherland for next PM of Ireland also !
Wait, we didn't mean that. We were...ummm...hacked. Yes, that is it hacked.
FYI. Today Slovakia auctioned 5 year treasuries, we were able to raise 13 mln. EUR vs. planed 150 mln...prepare for bloodbath elsewhere...use google translate : http://ekonomika.sme.sk/c/6139365/pondelkova-aukcia-slovenskych-dlhopiso...
There will be no down grade. TPTB would never risk our strategic hot chocolate supply. What would congress members drink after they come inside from making snow angels in the capitol lawn?
I had to rub my eyes and look twice but am I seeing a sorta slow evolving rounding parabolic arc building steepness on the SPY back from Feb. ? and more so should this ending triangle affair break 124ish to the down side ? No wonder Buffer is out today pumping IBM and WFC.
China Puts U.S. Debt on Downgrade Reivew.
http://www.guardian.co.uk/business/2011/nov/12/chins-threatens-us-with-n...
Where was that thread about the Chinese telling the truth?
Downgrade the planet
This is all part of the plan.
"They" need to keep CHF pegged to a falling EUR, and buying EUR is just too painful.
Tyler ! That's funny ! Swiss Bank put on credit watch ? Swiss watch doesn't keep good time ? Swiss cheese has defective holes ? Lederhosen on Swiss misses promotes vaginal yeast infections ! The best humour is spontaneous ! Credit Suisse on credit watch ? How Suisse it is ! Monedas 2011 Comedy Jihad Swiss Chocolate Meltdown
Zimbabwe places Moody's on downgrade review.
Bolivia places NY Yankees on downgrade review
Does this include a downgrade of Swiss chocolate? What next?
Spooky Polish Tit places You on downgrade oral raper review list
Gold = 1776! God bless America!
Fixed it for you.
God blesses gutting America!
Four words...strategic nazi gold reserves! :)
The rating agency noted that Credit Suisse has demonstrated consistent strength in risk management since the start of the financial crisis, has significantly lowered its risk appetite-
**********
It was what they did before the crises that counts and that was loan billions of CHF into the eastern Europe housing bubble when the exchange rate was 167 EUR/CHF-
The amount of loans tallies up to about 25% of Swiss GDP and the Banking industry totals about 70% of Swiss GDP-
Thus the CHF/EUR peg which they hope will dampen the mortgage defaults that will slam these Banks hard-
BYE BYE "tax haven".... THE END OF BANKS EXCESS... FOR EVER AND EVER...
these banksters should not feel bad
i've been losing, too
and i don't have any debt from which to exclude fair value gains
i'm holding firm: noMo debt for slewie till they pay me 3%; then, i'll take $1 mil
I guess Alessio Rastani was right when he said Goldman rules the world. Now we get to see it in the literal sense.
Moodys ratings should come with a warning label fraud alert . Something like a cigarett label smoking causes cancer.
And the Beat goes on.
I called this last week... downgrading Switzerland banks was coming.
swiss is no longer free since the end of the millennium,
as Ferdinand Lips writes in his "Gold Wars"