Credit Suisse is a Swiss bank that was founded in 1856 and played a major role in developing Switzerland's economy.
However, it has faced many scandals in recent years such as fraud, money laundering, hiring spies, and involvement in the 2008 crisis.
Credit Suisse's growth culture prioritized profits over safety, which led to dangerous behaviors and controversies.
The bank also invested in risky firms, resulting in billions of dollars in losses. Credit Suisse had multiple leadership changes, and even the new chairman resigned after breaking quarantine rules.
The bank has been involved in a lot of shady business, including money laundering, fraud, and corruption. They had to pay half a billion dollars in damages, and their financial controls were found to be weak. This caused many people to take their money out of the bank, and even the Saudi National Bank stopped providing funds.
The Swiss government intervened by having UBS, another big bank, buy out Credit Suisse. It seemed like a good deal for UBS, but the merger is controversial and could cause problems for both banks in the future.
Credit Suisse was founded in 1856 and played a major role in developing Switzerland's economy.
Recent scandals include fraud, money laundering, hiring spies, and involvement in the 2008 crisis.
Credit Suisse's growth culture prioritized profits over safety, leading to dangerous behaviors and controversies.
The bank invested in risky firms, resulting in billions of dollars in losses.
Credit Suisse had multiple leadership changes, and even the new chairman resigned after breaking quarantine rules.
Regulators disagreed with Credit Suisse's explanation of events regarding the espionage scandal.
The bank had to pay a lot of money in damages and was losing clients.
The Swiss government had UBS buy out Credit Suisse.
The merger is controversial and there are concerns about it being done too quickly and without proper approval.
UBS may have to deal with a lot of issues related to Credit Suisse's questionable history.
Confidence in the Swiss banking system has decreased.
In 2019, the former head of wealth management for Credit Suisse left the company to work for UBS which was located just a few blocks away.
It then came to light that he was being followed by a private investigator and later on, the police found out that the spy was hired by none other than CEO of Credit Swiss himself.
The Firm played down the episode and called it an isolated act but Switzerland's Financial Regulators disagreed according to them Credit Swiss planned and carried out most of seven different spying operations between 2016 and 2019.
Credit Suisse was involved in a scandal where private investigators were hired to trail Khan.
The investigator died mysteriously, and no executive was found guilty.
The CEO of Credit Suisse had hired spies, and the scandal was too large to ignore, resulting in the resignation of the chairman, the head of the bank's security, and later the CEO.
Credit Suisse was investing in risky firms, including Green Seal Capital and the infamous ARCA Ghost Capital.
Both companies collapsed, and Credit Suisse was the worst hit.
The bank lost billions of dollars, and it was stated that the ARCA Ghost-related losses sustained by Credit Swiss were the result of a fundamental failure of management and controls in Credit Suisse's Investment Bank and specifically its prime services division.
Credit Suisse lost 15 billion dollars in a single quarter, and the bank needed a new leader to sort things out.
Antonio Horta Osorio was appointed as the new chairman in May 2021.
He promised to change the culture and bring better risk management, but he was forced to resign less than a year later because he broke quarantine rules.
He said that Credit Suisse was worse than anything he had experienced running several banks in his 35-year career.
International Entities and Criminal Settlements 10:30
Dozens of international entities publicly known for their involvement in human rights abuses, drug trafficking, corruption, money laundering, and other serious crimes all had their funds stashed away in Credit Suisse.
Credit Suisse had to pay half a billion dollars in damages over a fraud case at its Bermuda Insurance arm.
In June, the Swiss bank was found guilty in a money laundering case involving a cocaine trafficking ring in Bulgaria.
Credit Suisse's reputation was in complete shambles, and many financial advisors began to recommend that clients take their money out of the firm.
The controversial deal was able to save the Swiss economy and its beloved banking sector, yet many people are raising questions over the legitimacy of state involvement in the negotiation of the deal.
According to reports, UBS and Credit Suisse executives did not meet over the weekend to discuss the deal; it was the government and Swiss central bank that orchestrated the move behind the scenes.
The true problem is how the deal was made - UBS is a public company, and as such, its shareholders have to approve major decisions. It takes six days to have an emergency conference and reach an agreement, but this time, the government made an exception that allowed UBS to override that rule.
The move was particularly unpopular with the parliament of the country. Under Switzerland's political system, parliament is needed to ratify emergency decisions by the government, something that didn't happen this time around.
UBS seems to have gotten a bargain by eliminating their competition and solidifying themselves as the biggest bank in Switzerland, but the truth may be different.
New reports seem to indicate that over half the Swiss population is against the merger of the two banks.
Cultures within the two firms are completely distinct, so a split should not be off the table for UBS.
The US Department of Justice is already looking into former Credit Suisse's involvement in helping Russian oligarchs evade sanctions, and UBS is likely going to find a lot of skeletons in Credit Swiss's closet.
The Swiss banking system may lose what's left of its reputation.
Confidence in the banking system has worsened 16:45
Confidence in the banking system has only gotten worse, and Europeans are looking out for the next weak spot.
Even if a bank has all the required ratios in place, it can easily go down if enough withdrawals are made at once.
So far, it seems like the next in line is Deutsche Bank.