TYLER DURDEN, 08 April 2021
Markets were shaken but unstirred by the collapse of Greensill and the Archegos unwind trades. Credit Suisse is the ultimate loser of the two scandals – reputationally damaged and holed below the water line. The bank is paying the price of years of flawed management, poor risk awareness. and its self-belief it was still a Tier 1 global player. Its’ challenge is to avoid becoming the Deutsche Bank of Switzerland – which it will struggle to do without a radical and unlikely shakeout.
As the global economy bounces back, markets are having a good time as indices close higher, but things aren’t so bright in Switzerland.
I started this morning by opening Credit Suisse’s Private Banking website. I was curious. After blagging my way onto the site by stating I am an exceptionally wealthy Mexican exporter with oodles of easily transportable assets and free cash to invest, I read through the offering. As is traditional on any private banking website, it featured a video of a yacht. To be honest… and I know about yachts – I’ve seen better. But if I was looking for a “trusted partner” at “every life stage” and wanted to avail myself of the their collective experience after 164 years in business, numerous best banks awards and “Swiss-class customer service”… where else would I go?