Credit Suisse and the collapse of its institute. Here’s what you need to know

The USB group just bought the Suisse group for the amount of 3 billions. The main point of this move was to stop the bank from collapsing. 

Credit Suisse is the most prestigious bank of Switzerland. The bank comes among the 30 most important banks. Today we are going to discuss the collapse of this bank and its impact on other banks.

The bank was the most significant bank. There was almost a trillions of money in the accounts. Almost 50 or more people used to work under this bank. Credit Suisse was operating in diverse divisions. 

● Capital release unit

● Swiss bank

● Asset management

● Investment bank

● Managing the wealth

Reason behind the collapse

Although Credit Suisse was a prestigious bank, last year it was facing some scandals as well as some changes in the management. The losses that the bank faced in recent years led to the collapse of this amazing bank. 

In 2019 there was a spying scandal in the bank and after that the CEO Tidjane Thiam gave his resignation in 2020. After that management course Iqbal Khan also left the bank. And many private contractors were keeping a close track on him in order to find out if he had taken any clients with him or not. 

After that credit suisse kept on losing clients. Then there was another scandal involving the US firm Archegos. Where the bank was unable to keep track of fraudulent activities. Even after finding out the bank did not take any notice. That’s why these events led to its disaster. 

Then at the time of the pandemic, another member of board chairman Antonio Osorio resigned. He did so after the enquiry and there were some facts that he did not take care of the pandemic and COVID-19 protocols.

Then suddenly in 2022 there were rumours and factual talks that the bank is going to face a failure. It was on the word of going bankrupt that’s why many clients started pulling their investments and money out of the bank. This led to the loss of $119 billion.

After losing almost 1/3 of the value in almost a year the bank announced it will borrow the amount of $54 billion. So it can liquify the liabilities. But the top backing system of suisse credit was Saudi national bank. It suddenly stopped any kind of funds. Announcing it will not further provide the bank with any help or amount. Because the bank was facing some issues of barriers. 

But after the loss of silicon valley bank the government made promises to provide a hefty amount of investors easily. This all led to the collapse of the bank.