Death Star Economics



A Swiss kind of problem: Credit Suisse splits and gets sued

It’s a pretty epic day for Credit Suisse. The bank announced to split into two units, wealth management and investment banking, squeezing its asset management arm into the former, which had been planned for a while now to decrease back office costs. The bank cited “the new regulatory reality” as a reason for the restructuring. Capital will be split 50:50 between the two units and the investment bank’s risk-weighed assets are meant to be cut by another 10%. Credit Suisse is aiming to save SFR4bn by 2015.

Some of those ambitious savings, however, will need to be put towards the legal costsEric Schneiderman, New York’s Attorney General, strikes again and filed a civil lawsuit against Credit Suisse after investors in mortgage-backed securities lost more than $11bnread article

Staying with Swiss banks and fines, ex-UBS Kweku Adoboli was convicted in four cases of false accounting and two cases of fraud in the lawsuit brought against him after he lost £1.4bn in trades between October 2008 and September 2011read article

In Japan, the government has announced to put another JPY1tn ($12.3bn) towards its stimulus program to save its economy. Japan’s economy is forecasted to shrink 0.4% in Q4. Following the 3.5% decrease in Q3, this would push the country into the third recession since 2008. Meanwhile, the Bank of Japan has left it’s asset-purchasing program untouchedread article

Yesterday, the FT’s Wolfgang Muenchau, the godfather of the eurozone crisis commentators, denounced France as Europe’s next problem child, saying:

The relatively robust growth during the third quarter was a fitting example that France is often more resilient than forecasters and commentators generally acknowledge. […] the currently fashionable French-bashing is politically motivated – a rightwing reaction against a Socialist president.

This morning, Moody’s, which doesn’t subscribe to the FT, downgraded France to Aa1. Au revoir, A-triple.

With unemployment figures at the highest in 13 years and French household names like Peugeot Citroen losing ground on the global market, this is just another weakness to France’ voice in European negotiations. read article

So long.


Filed under: news brief, , , , , , , , , , , , , , , ,

2 Responses

  1. princess1960 says:

    HELLO about the Credit Suisse looks something not clear for me .
    UBS case this is (dirty side) to allmost all the bank’s coruption speculation (i don’t think he is alone in this case)Adoboli’s
    FR unemployment well what we waiting to have miracle for FR ?bad from HOLLAND he have to read more..
    JAPAN no coment
    for my opinion is the best for forgein..investore ‘s
    thank you

  2. […] two days after mentioning the underperforming French [car] industry, Renault came out with the following plan: if the French unions make life difficult for you, […]

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: