Europe brings together the banking sector

Following the collapse of respective major banks in the United States, which began to match the beginnings of the 2008 financial crisis, the first banking strategy collapse syndromes besides began to appear in Europe.

Swiss Credit Suisse's stock listings on the stock exchange recorded a evidence 30% decrease.

Sheikhs and influential funds

Credit Suisse not only dealt with classical credit business but besides invested in risky financial instruments. The amount of assets that he is trading now amounts to 824.6 billion Swiss francs, while the value of liabilities 752.4 billion francs.

The main shareholders of the Swiss bank are presently Saudi Saudi National Bank (9.88% of shares), Qatari Qatari Qatari Investment Authority (5%), Norwegian Norges Bank Investment Management and well-known influential American investment funds – BlackRock, Vanguard and Harris Associates.

Risky Games

Credit Suisse's first problems came in 2021 erstwhile it turned out that cooperation with the fund hedging Archegos, a financial pyramid, ended in losses of 4.4 billion francs for him.

Bank losses in the last 4th of 2022 already amounted to 3.3 billion francs, which was the worst consequence since the crisis of 2008. The marketplace presently assesses the likelihood of Credit Suisse defaulting on the required deadlines at 38%.

Surveillance problems

At the same time, Credit Suisse has experienced serious problems with the Swiss Financial marketplace Supervision Administration (FINMA). These concerns suspected any of the bank's structures of participating in money laundering and alleged taxation optimization operations.

The bank's authorities, defending themselves, undertook extended cooperation with the Americans, including the D.A., the Justice Department, and agencies active in the prosecution of financial crime.

Russian contributions?

The Americans stated that Credit Suisse worked with natural and legal persons from Russia under US sanctions. The bank authorities, of course, denied it.

Credit Suisse has been 1 of the banks offering its services to alleged hard customers for years. These activities, although they carry many risks, besides have a number of benefits. These include, for example, the fact that, as a rule, specified customers are comparatively loyal, fearing besides much transfer of their assets. They are thus more likely to tolerate risky investment operations by the bank, which they have already trusted once. In addition, in the event of the freezing of their funds, the bank gains the anticipation of trading them on the investment marketplace for a long time.

Arab bailout money?

Some experts consider that the full situation of Credit Suisse besides involves an effort to verify how much the shareholders of the bank from the Gulf countries (the arabian Peninsula monarchy act) decide to save it at all costs and thus pump billions of francs into the European banking system.

For now, it appears that Saudi National Bank, the largest of the investors in the region, will in any case incur losses, both by saving Credit Suisse and by not reacting to the decline in its stock exchange value.

Collapse of European banking

Some say that Credit Suisse's problems are the beginning of the process leading to the slow roll-up of the European banking sector. The provincialisation and periphery of the Old Continent are intended to lead to the transfer of industrial production across the ocean, which is already happening.

The capital outflow to the United States will lead to a deficiency of investment projects on the European market. European banks will lose their jobs and last only any of them.

MP