Credit Suisse does not have the risks under control

Recurring one-off events such as the most recent Greensill case reinforce the impression that the big bank is operating a business model that is too complex and fraught with conflicts of interest. That overwhelms risk management.

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What’s going on with Credit Suisse (CS)? The bank, which actually wanted to take off after several years of renovation, is sliding from one debacle to another. In the most recent case, its asset management arm has suspended all subscriptions and redemptions for four of its own funds that have invested $ 10 billion in professional investor funds in an investment vehicle from British-Australian finance company Greensill.