Investment bankers are supposed to be masters of the universe. But the comical bumbling of Credit Suisse suggests otherwise. Opinion for 'The Node' newsletter by davidzmorris
, the projected shortfall is thanks to a mix of weak projected earnings, rising inflation, a risk-heavy balance sheet , lawyer fees as well as costs if Suisse is forced to restructure., saying Suisse needed to raise around 9 billion Swiss francs in the next two to three years. So Suisse must either sell assets or issue new stock, at a moment in the business cycle when you definitely, really don’t want to be doing either of those things. Especially if you’re Credit Suisse.
This article is excerpted from The Node, CoinDesk's daily roundup of the most pivotal stories in blockchain and crypto news. You can subscribe to get the fullThe litany of failures that led Suisse to this pass is … well, it’s a litany. A litany that is, nearly from start to finish, utterly hilarious.
Archegos ultimately nuked roughly $20 billion into the dirt, with Suisse alone on the hook for a stunning $5.5 billion of that. That’s believed to be the highest loss among the several banks whose big loans let Archegos run its boneheaded strategy . Other lenders, including Goldman Sachs, simply managed to get out faster.
Three Arrows Capital, for its part, used leverage to turn about $10 billion into dust. Archegos is beating Three Arrows on another metric – Archegos management already faces
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