/ world today news/ The following of the EU in the fairway of the US sanctions against Russia led to another obviously negative consequences in the financial sector.
This is inflation, with many side effects of the energy crisis, the curtailment of business activity and the physical bankruptcy of small and medium-sized enterprises. The EU’s strategic losses turned out to be even more significant. Without access to cheap energy resources from Russia, the EU economy lost the competitive advantages it had built up over decades. This was expressed in the desire of many companies, such as Volkswagen or ArcelorMittal, to expand their production in the USA – in parallel with the reduction of production in Europe.
Another alarming signal for European sovereignty can certainly be considered the problems of the largest bank, Credit Suisse – the support bank for the EU, founded in 1856, which ranks 45th in the world by assets. According to S&P’s global ranking of the world’s 100 largest banks, Credit Suisse’s assets are valued at $829.12 billion – depending on the valuation methodology, you can also find the figure of $2 trillion in assets that the bank now manages . Currently, Credit Suisse is close to one of the biggest transformations in its history, which will lead to a significant deterioration in the positions of “European” money in the world.
Credit Suisse and its loans
There are many signs that the clouds are gathering over Credit Suisse : On October 10, in a US court, Credit Suisse was declared “part of a worldwide conspiracy” for manual control over the currency markets. The case involves a dozen and a half credit institutions, including American ones – they are accused of coordinating the value of currencies from 2007 to 2013, adjusting rates in the interest of their partners.
It should be noted that US banks were able to settle claims back in 2017, paying a total of $2.3 billion in compensation. But Credit Suisse clearly looks like a “doomed” entity, the information field around which remains toxic.
Leading news agencies report the essence of Credit Suisse’s problems – this is a significant number of bad investment assets, due to which the bank will face the need for additional financing of $ 8 billion in 2024. Therefore, analysts say that Credit Suisse shares should be sold.
Credit Suisse has announced a major restructuring, the details of which will be announced on October 27. With just over a week to go, the bank is scrambling to raise as much cash as possible for a restructuring that is likely to lead to drastic job cuts and a significant restructuring of the business.
The sale of a number of assets, including the bank’s Latin American business, was initially reported. In the region, Credit Suisse has assets for $100 billion. In addition to this division, the bank is considering the possibility of spot sales of a number of objects – for example, the 200-year-old Savoy Hotel in the center of Zurich with an estimated price of $401 million. On October 17, it became known that it may be sale of Credit Suisse’s North American business as well.
The blow of the “Black Rock” /Black Rock/
America owns 146 billion Swiss francs or $147 billion in assets. Abu Dhabi and Saudi Arabia are interested in acquiring the US arm of Credit Suisse Asset Management, as the Swiss bank, which has a known history of good relations in the Middle East, hopes for their involvement. However, the American financial corporation BlackRock Inc. has the greatest chances of success. (She herself did not comment on this information).
BlackRock Inc is a New York-based investment fund with over $10 trillion in assets under management. BlackRock Vice President Philip Hildebrand in an interview with Bloomberg did not comment on the information about a possible takeover by the fund of the US division of Credit Suisse, but noted that the current state of the bank – read, catastrophic – looks attractive for a “re-entry”.
Hildebrand added that Credit Suisse Group AG’s problems are a systemic problem for European banks, which “they need to change their business model”. As an example, Deutsche Bank AG was cited, which recently experienced its own crisis, which the German government was able to resolve with powerful financial injections.
Interestingly, the BlackRock executive was mentioned in the Swiss press two years ago as a potential candidate for the chairmanship of Credit Suisse, as the bank was then looking for a replacement for Urs Rohner. Hildebrand is famous for saying that Switzerland’s future as a financial center is in asset management, not investment banking.
The likelihood that one of the largest European financial centers will soon lose the ability to manage assets for a huge amount is more than obvious. The beneficiary will likely be the US fund. However, this is not even the main thing – and neither is the focus on Credit Suisse, as the vice president of BlackRock said.
The EU is consistently losing competitiveness and ability to influence global processes. First the political instruments suffered, then the economic and industrial ones, and now it was the turn of the financial sector.
Translation: ES
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