Tag: Credit Suisse (Page 1 of 2)

Credit Suisse Receives New $17 Billion in Write-offs

Market News Daily: Credit Suisse receives news $17 Billion in write-offs.
Market News Daily: Credit Suisse receives news $17 Billion in write-offs.

(Reuters) Credit Suisse said 16 billion Swiss francs ($17.24 billion) of its Additional Tier 1 debt will be written down to zero on the orders of the Swiss regulator as part of its rescue merger with UBS, angering bondholders.

FINMA, the Swiss regulator, said the decision would bolster the bank’s capital.

The central bank also helped by providing 100 billion Swiss francs ($108 billion) in liquidity assistance.

The move reflects authorities’ desire to see private investors share the pain from Credit Suisse’s troubles.

Chair Marlene Amstad said FINMA had stuck to the country’s “too-big-to-fail” banking framework in making the decision.

It means bondholders appear to be left with nothing while shareholders, who sit below bonds in the priority ladder for repayment in a bankruptcy process, will receive $3.23 billion under the UBS deal.

“It’s stunning and hard to understand how they can reverse the hierarchy between AT1 holders and shareholders,” said Jerome Legras, head of research at Axiom Alternative Investments, an investor in Credit Suisse’s AT1 debt.

Reuters reported earlier on Sunday that Swiss authorities were considering imposing losses on bondholders as part of the rescue deal.

UBS’ CEO Ralph Hamers told analysts that the decision to write down the AT1 bonds to zero was taken by FINMA, so it would not create a liability for the bank.

How Did Credit Suisse Collapse?

Market News Daily: Credit Suisse receives news $17 Billion in write-offs.
Market News Daily: Credit Suisse receives news $17 Billion in write-offs.

Credit Suisse (NYSE:CS) has gone through financial difficulties many times since its inception but has been bailed throughout its history.

“A string of scandals over many years, top management changes, multi-billion dollar losses and an uninspiring strategy can be blamed for the mess that the 167-year-old Swiss lender now finds itself in”, says Reuters.

Chairman Axel Lehmann is blaming the banks collapse on retail investors.

In an interview in Switzerland, the Chairman says “last autumn we had a social media storm” and highlights the changing environment in the market.

“Last autumn we had a social media storm and this had huge repercussions, more in the retail sector than in the wholesale sector, and too much becomes too much.

And that’s when we reached this point, it’s an accumulation of various facts that contributed to one another then materialized at some point. And this then caused the situation.”

Axel Lehmann also said they were affected by a model that “no longer works in this market environment.”

Should There Be a Limit to How Many Times a Bank Can Get Bailed Out?

The fed said in 2021 that ‘meme stocks’ pose risks to financial stability, something retail investors voiced as the most absurd thing our body of government could conclude.

Overleveraged hedge funds, infinite capital from banks, and complicit regulators have been the main cause of systemic risk.

We’re beginning to see the retail crowd become a scapegoat for our financial system’s failures — though this isn’t going to last long.

The ‘it’s retail’s fault’ card won’t carry weight in lawful request for accountability.

This card was used during the ‘meme stock’ frenzy as well when Robinhood, Citadel, and other brokerages halted trading.

Retail investors were blamed but the truth is there was a massive liquidity problem and short sellers could not afford to close their naked shorts.

The only solution was to halt trading, take short positions again, and wait for prices to fall in order to make up losses.

Regulators waived billions in collateral, bailing institutions out of a massive mess.

More and more investors are losing trust in the financial system.

Now that Credit Suisse has escaped with $17 billion in write-off, it’s now more evident that certain institutions truly are too big to fail.

But I’d love to hear your thoughts on this – leave a comment down below.

Related: “The Game is Rigged” Says Ex-Citadel Data Scientist

Market News Published Daily

Market News Daily: Credit Suisse receives news $17 Billion in write-offs.
Market News Daily: Credit Suisse receives news $17 Billion in write-offs.

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Credit Suisse Chairman Blames Collapse on Retail Investors

Credit Suisse Chairman Blames Collapse on Retail Investors
Market News Daily: Credit Suisse Chairman blames collapse on retail investors.

Credit Suisse (NYSE:CS) Chairman Axel Lehmann is blaming the banks collapse on retail investors.

In an interview in Switzerland, the Chairman says “last autumn we had a social media storm” and highlights the changing environment in the market.

“Last autumn we had a social media storm and this had huge repercussions, more in the retail sector than in the wholesale sector, and too much becomes too much. And that’s when we reached this point, it’s an accumulation of various facts that contributed to one another then materialized at some point. And this then caused the situation.”

UBS has agreed to buy Credit Suisse, its beleaguered rival, the Swiss government said on Sunday, in a hastily arranged deal meant to shore up the global financial sector after a week of turmoil.

Swiss government leaders and regulators said that the deal was the most effective way of reassuring investors after Credit Suisse’s shares tumbled following the implosion of Silicon Valley Bank earlier this month.

One of the sources cautioned that the talks to resolve the crisis of confidence in Credit Suisse are encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combine.

In November, the bank had warned investors in a 6-K filing of potential losses due to naked short covering — a topic retail investors have been urging the SEC to look into.

The 167-year-old Credit Suisse is the biggest name involved in the turmoil unleashed by the collapse of US lenders Silicon Valley Bank and Signature Bank over the past week.

During the collapse of SVB, we also saw Wall Street banks lose more than $55 billion in just one day alone.

Retail Investors Mock Credit Suisse

Market News Daily: Credit Suisse Chairman blames collapse on retail investors.

Credit Suisse shares have fallen below AMC’s price target of $0.95 — the share price the bank’s stock is currently trading at.

Retail investors are mocking Credit Suisse for its attempt to short and distort AMC Entertainment just months before its troubles.

Now Credit Suisse Chairman Axel Lehmann is blaming retail investors for the bank’s failures.

“We were affected by a model that no longer works in this market environment, and many clients have been very loyal for a very long time.

Last Autum we had a social media storm, and this had huge repercussions.”

But credit Suisse clients have been withdrawing billions of dollars in the past months.

“The unusual intervention by the U.S regulator is the latest blow to Credit Suisse as it attempts to rebuild investor confidence after a series of scandals and setbacks that have sent its shares plunging and led clients to withdraw billions” says Reuters.

Market News Published Daily

Market News Daily: Credit Suisse Chairman blames collapse on retail investors.
Market News Daily: Credit Suisse Chairman blames collapse on retail investors.

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Credit Suisse Shares Are Now Less Than AMC’s Price Target

Credit Suisse Shares Are Now Less Than AMC Price Target
Market News Daily: Credit Suisse Shares Plunge Below AMC’s Price Target.

Credit Suisse (NYSE:CS) shares are now less than AMC’ price target of $0.95.

The bank had given AMC Entertainment (NYSE:AMC) stock a price target of 95 cents per share and claimed shareholders of the movie theatre chain company should sell.

At the time of the publication, Credit Suisse was trading at $3.95, AMC Entertainment at $6.50, or $8.59 combined with APE.

AMC shares are currently trading above $4.30 but Credit Suisse shares have now fallen below $0.95, the price target they gave AMC during the fourth quarter of 2022.

Credit Suisse AMC Price
Market News Daily: Credit Suisse Shares Plunge Below AMC’s Price Target.

On Monday, shares fell by more than 50% amid its acquisition by UBS.

Credit Suisse clients have been pulling billions of dollars from the bank over the past months.

In November, the bank warned investors in a filing of potential losses due to covering naked shorts.

The bank too big to fail is now being kept on life support.

Retail Investors Mock the Bank’s Failure

Majority of AMC shareholders are for the most part, retail activist, fighting for market transparency and a leveled playing field in the market.

This activism was conceived around the time Citadel, Robinhood, and other brokerages halted the trading of ‘meme stocks’, including GameStop, and others.

Fortunately for AMC Entertainment, its run in January was only the beginning.

Shares later rose to an all-time high of $72 per share in June before winding down to current levels today.

But one of the most unsettling experiences shareholders have faced, aside from blatant market manipulation (dark pools/off exchange trading, naked short selling, etc.) has been the short and distort campaigns from Wall Street media.

Credit Suisse had CNBC’s help to push AMC’s $0.95 price target — a tactic used by short sellers to drive shares even lower.

Media outlets such as TheFool, MarketWatch, Benzinga, WSJ, and Jim Cramer, undermined AMC Entertainment.

But retail investors weren’t scared off so easily.

Since then, various media platforms and personalities have lost trust and credibility in the eyes of retail investors.

Latest AMC Stock News

Latest AMC stock news - Franknez.com.
Latest AMC Stock News – Franknez.com.

Investors have recently begun to make big purchases on AMC’s new branded popcorn.

While people are slowly beginning to see AMC Perfectly Popcorn on shelves, many have already bulked up — an effort to support the company and fight Wall Street pessimists.

Since March 11, Walmart customers can have their choice of six different varieties of AMC popcorn — extra butter, classic butter, or lightly salted, in popped or kernel form.

The microwave popcorn will cost $4.98 for a 6-count.

Meanwhile, the ready-to-eat popcorn bags will cost $3.98, per AMC.

Adam Aron said the company remains focused on “future innovations that will continue to surprise and delight movie lovers and our shareholders.” 

“I’ve made a decision to buy $200 of these bags per month and hand them out to anyone and everyone.

People in the store, people in the parking lot etc. Friends.

CREATE more customers.

That’s 50 free bags/month”, said an investor.

Related: AMC CEO Adam Aron Hints at Destroying Short Seller Thesis

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Market News Daily: Credit Suisse Shares Plunge Below AMC's Price Target.
Market News Daily: Credit Suisse Shares Plunge Below AMC’s Price Target.

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10,000 People Will Lose Their Job in UBS Credit Suisse Merge

Market News Today - 10,000 people Will Lose Their Job in UBS Credit Suisse Merge.
Market News Today – 10,000 people Will Lose Their Job in UBS Credit Suisse Merge.

(WSJ) UBS has agreed to buy Credit Suisse, its beleaguered rival, the Swiss government said on Sunday, in a hastily arranged deal meant to shore up the global financial sector after a week of turmoil.

Swiss government leaders and regulators said that the deal was the most effective way of reassuring investors after Credit Suisse’s shares tumbled following the implosion of Silicon Valley Bank earlier this month.

To help support UBS, the Swiss National Bank agreed to lend up to 100 billion Swiss francs, or $108.8 billion.

And Finma, the Swiss financial regulator, said it would temporarily suspend some regulations to help UBS digest its chief competitor.

The takeover of Credit Suisse is the most consequential fallout to date from the turmoil that spread from the implosion of Silicon Valley Bank earlier this month.

But Credit Suisse’s troubles were largely of its own making, tied to years of scandals and financial missteps that have cost it billions of dollars in trading losses and legal fines.

UBS will is expected to pay just a fraction of the roughly 8.8 billion Swiss francs, or $9.5 billion, that Credit Suisse was valued at on Friday, these people said.

They cautioned that the terms are still being negotiated last minute and talks may still fall apart.

Credit Suisse clients have been withdrawing billions of dollars in the past months.

In November, the bank had warned investors in a 6-K filing of potential losses due to naked short covering.

UBS and Credit Suisse Merge to Spark Massive Unemployment

Market News Today - 10,000 people Will Lose Their Job in UBS Credit Suisse Merge.
Market News Today – 10,000 people Will Lose Their Job in UBS Credit Suisse Merge.

UBS is asking the Swiss government to cover about $US6 billion in costs if it were to close the deal with Credit Suisse.

The 167-year-old Credit Suisse is the biggest name involved in the turmoil unleashed by the collapse of US lenders Silicon Valley Bank and Signature Bank over the past week.

During the collapse of SVB, we saw Wall Street banks lose more than $55 billion in just one day alone.

JPMorgan, the biggest US bank, alone saw a $22 billion tumble in its market value as its stock slid 5.41% to $130.34.

Wall Street’s Bank of America lost $16.16 billion as its share price fell 6.20% to $30.54.

Wells Fargo and Morgan Stanley saw their market capitalization drop by $10.3 billion and $6.2 billion, respectively.

The $US6 billion in government guarantees UBS is seeking would cover the cost of winding down parts of Credit Suisse and potential litigation charges, two people told Reuters.

One of the sources cautioned that the talks to resolve the crisis of confidence in Credit Suisse are encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combine.

Swiss regulators are racing to present a solution for Credit Suisse before markets reopen on Monday, but the complexities of combining two behemoths raises the prospect that talks will last well into Sunday, said the person, who asked to remain anonymous because of the sensitivity of the situation.

Credit Suisse, UBS and the Swiss government declined to comment.

Warren Buffett and Biden Administration Officials Meet

Berkshire Hathaway’s Warren Buffett has held discussions with senior Biden administration officials about the banking crisis, a source told Reuters.

The White House and US Treasury declined to comment. Bloomberg News reported earlier that Buffett had been in touch with the administration in recent days about the regional banking crisis, Bloomberg News reported on Saturday.

The source declined to elaborate on the details of the discussions.

Market News Published Daily

Market News Today - 10,000 people Will Lose Their Job in UBS Credit Suisse Merge.
Market News Today – 10,000 people Will Lose Their Job in UBS Credit Suisse Merge.

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Credit Suisse Was Bailed but Clients Keep Pulling Out Money

Market News Daily: Credit Suisse Bank News Today.
Market News Daily: Credit Suisse Bank News Today.

Credit Suisse is trying to lure investments from wealthy clients in Asia by offering higher deposit rates than its competitors, Reuters has reported citing people familiar with the development.

Sources said the offers are valid until the end of this quarter and only apply to new cash deposits, not to existing portfolios.

The Swiss National Bank and Finma, the top financial regulator in Switzerland, said Credit Suisse “meets the higher capital and liquidity requirements applicable to systemically important banks.”

The regulators didn’t provide details of what type of liquidity they would offer, but said they are in very close contact with the bank.

“If regulators do not handle the Credit Suisse situation well, this will send shock waves through the whole sector,” said Joost Beaumont, head of bank research at Dutch lender ABN Amro.

Credit Suisse has been the problem child of European banking for several years.

Repeated scandals and financial losses have hammered the 166-year-old bank, which combines a wealth-management business catering to the world’s elite rich with a Wall Street investment bank. 

The bank is classified as a “systemically important financial institution” under international banking rules created after the collapse of Lehman Brothers.

Such designations require the bank to hold higher amounts of capital and to maintain plans for an orderly unwinding of its operations in case it gets into trouble. 

Like Silicon Valley Bank, Credit Suisse has suffered large deposit outflows in recent quarters.

Some local units briefly breached regulatory liquidity coverage ratios last fall.

That means they weren’t holding enough easy-to-sell assets, such as bonds, to safely cover customer withdrawals.

Top 4 Wall Street Banks See Big Losses

Wall Street’s 4 top banks just had $55 billion wiped off their market value in a single day.

Four of America’s biggest banks lost a combined $55 billion of market value in a single day as financial stocks plunged.

US bank shares took a beating amid fears of contagion effects from the turmoil at Silicon Valley Bank and Silvergate.

 JPMorgan Chase, Bank of AmericaWells Fargo and Morgan Stanley – the four most valued US lenders – saw $55 billion wiped off their combined market capitalization last Thursday, Refinitiv data show.

JPMorgan, the biggest US bank, alone saw a $22 billion tumble in its market value as its stock slid 5.41% to $130.34.

Wall Street’s Bank of America lost $16.16 billion as its share price fell 6.20% to $30.54.

Wells Fargo and Morgan Stanley saw their market capitalization drop by $10.3 billion and $6.2 billion, respectively.

Among other major US banks, Goldman Sachs and Citi also witnessed significant declines in their share prices.

Credit Suisse Warned Investors of Potential Losses in Q4 of 2022

Market News Daily: Credit Suisse Bank News Today.
Market News Daily: Credit Suisse Bank News Today.

The SEC released Credit Suisse’s 6-K filing where the bank warns investors of potential losses due to naked short covering, more on that below.

Credit Suisse (CS) took a massive hit of $4.09 billion in Q3 and hinted at occurring losses in an upturn in markets — something we saw at the start of 2023.

The bank proceeded to hire 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster.

In a statement, the bank says, “Conversely, to the extent that we have sold assets that we do not own, or have net short positions, in any of those markets, an upturn in those markets could expose us to potentially significant losses as we attempt to cover our net short positions by acquiring assets in a rising market.

“Market fluctuations, downturns and volatility can adversely affect the fair value of our positions and our results of operations.

Adverse market or economic conditions or trends have caused, and in the future may cause, a significant decline in our net revenues and profitability.”

The closing of naked shorts this year would send affected securities soaring as buying momentum compounds.

Credit Suisse recently postponed publication of its annual report after a last-minute call from the United States Securities and Exchange Commission (SEC), which raised questions about its earlier financial statements.

The unusual intervention by the U.S regulator is the latest blow to Credit Suisse as it attempts to rebuild investor confidence after a series of scandals and setbacks that have sent its shares plunging and led clients to withdraw billions, per Reuters.

Market News Published Daily

Market News Daily: Credit Suisse Bank News Today.
Market News Daily: Credit Suisse Bank News Today.

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SVB Distributed Bonuses Hours Before Bank Collapsed

Banking News: SVB gave company-wide bonuses hours before it collapsed.
Banking News: SVB gave company-wide bonuses hours before it collapsed.

Silicon Valley Bank employees received their annual bonuses on Friday just hours before the government took control of the company, according to Fox Business.

The Santa Clara, California-based band collapsed last week and is now under the control of federal regulators.

SVB had been the 16th-largest bank in the U.S. prior to the bank run that led to its downfall.

The bank held a reputation as a go-to for a number of Silicon Valley industries and startups.

Y Combinator, an incubator startup that launched Airbnb, DoorDash and DropBox, regularly referred entrepreneurs to them.

SVB’s collapse was so quick that, hours before its closure, some industry analysts were hopeful that the bank was still a good investment.

The bank’s shares had fallen by 60% on Friday morning after a similar drop the day before. 

Anxious depositors rushed to withdraw their money over concern for the bank’s health, causing its collapse, which may serve as “an extinction-level event for startups,” according to Y Combinator CEO Garry Tan.

Entrepreneur and Dallas Mavericks owner Mark Cuban called for federal regulators to buy out the bank earlier on Friday.

“The Fed should IMMEDIATELY buy all the securities/debt the bank owns at near par, which should be enough to cover most deposits,” Cuban wrote as part of a lengthy Twitter chain last week. “Any losses paid for in equity and new debt from the new bank or whoever buys it. The Fed knew this was a risk. They should own it.” 

SVB traditionally processes annual bonuses on the second Friday of March, unnamed sources associated with the bank told CNBC.

The bonuses were reportedly for work completed in 2022.

Banking News: Wall Street Banks Face Distress

Silicon Valley Bank (SVB) isn’t the only bank experiencing serious distress.

Wall Street banks lost $55 billion in just one day last week.

Four of America’s biggest banks lost a combined $55 billion of market value in a single day as financial stocks plunged.

US bank shares took a beating Thursday amid fears of contagion effects from the turmoil at Silicon Valley Bank and Silvergate.

JPMorgan saw the biggest tumble in market value among US lenders, losing $22 billion. 

(Markets Insider) JPMorgan Chase, Bank of AmericaWells Fargo and Morgan Stanley – the four most valued US lenders – saw $55 billion wiped off their combined market capitalization on Thursday, Refinitiv data show.

JPMorgan, the biggest US bank, alone saw a $22 billion tumble in its market value as its stock slid 5.41% to $130.34.

Wall Street’s Bank of America lost $16.16 billion as its share price fell 6.20% to $30.54.

Wells Fargo and Morgan Stanley saw their market capitalization drop by $10.3 billion and $6.2 billion, respectively.

Credit Suisse Bank Sees Billions in Withdraws

Credit Suisse (NYSE:CS) clients have withdrawn billions of dollars in the past several months.

In November, the bank warned investors in a 6-K filing of potential losses due to naked short covering, which as scared investors from losing most if not all of their money.

Credit Suisse also took a massive hit of $4.09 billion in Q3 and hinted at occurring losses in an upturn in markets.

This has fueled widespread withdraws from the bank leading it to borrow money.

The bank hired 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster.

Credit Suisse has postponed publication of its annual report after a last-minute call from the United States Securities and Exchange Commission (SEC), which raised questions about its earlier financial statements.

The unusual intervention by the U.S regulator is the latest blow to Credit Suisse as it attempts to rebuild investor confidence after a series of scandals and setbacks that have sent its shares plunging and led clients to withdraw billions.

Market News Published Daily

Banking News: SVB gave company-wide bonuses hours before it collapsed.
Banking News: SVB gave company-wide bonuses hours before it collapsed | SVB News.

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Credit Suisse Clients Are Withdrawing Billions of Dollars

Market News Daily: Credit Suisse clients withdraw billions.
Market News Daily: Credit Suisse clients withdraw billions.

Credit Suisse (NYSE:CS) clients have withdrawn billions of dollars.

In November, the bank warned investors in a 6-K filing of potential losses due to naked short covering.

Disarming these types of overleveraged positions won’t be easy.

Credit Suisse took a massive hit of $4.09 billion in Q3 and hinted at occurring losses in an upturn in markets.

Now Credit Suisse as postponed publication of its annual report, per Reuters — more on that below.

The bank hired 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster.

Is Credit Suisse on the verge of collapsing?

Here’s the latest Credit Suisse news and update.

Credit Suisse Delays Annual Report..

(Reuters) Credit Suisse has postponed publication of its annual report after a last-minute call from the United States Securities and Exchange Commission (SEC), which raised questions about its earlier financial statements.

The unusual intervention by the U.S regulator is the latest blow to Credit Suisse as it attempts to rebuild investor confidence after a series of scandals and setbacks that have sent its shares plunging and led clients to withdraw billions.

Credit Suisse shares were close to their all-time low in Zurich on Thursday but later recovered much of a 6% loss.

The Zurich-based bank said the SEC had called it late on Wednesday regarding “certain open SEC comments about the technical assessment of previously disclosed revisions to the consolidated cash flow statements in the years ended December 31, 2020, and 2019, as well as related controls.”

The bank had revised how it booked a series of cash flows, including share-based compensation and foreign exchange hedges.

Credit Suisse (CSGN.S) said that following the call it had decided to postpone publication of its 2022 annual report.

“Management believes it is prudent to briefly delay the publication of its accounts in order to understand more thoroughly the comments received,” it said, adding that the 2022 financial results “are not impacted”.

The SEC declined to comment on the matter, a spokesman for the organization said.

Other regulatory authorities were not involved, a person familiar with the matter said.

Swiss financial regulator Finma told Reuters that Credit Suisse had informed it of the delayed publication.

“We are in contact with the bank,” Finma said.

The Bank Signals Red Flags and Raises Concerns

It remains unclear when the annual report will be released.

The delay was unusual, said five attorneys and experts.

“The disclosure is strategically and carefully worded so as not to raise alarms,” said Jacob Frenkel, a former SEC enforcement attorney who is now government investigations and securities enforcement practice chair for law firm Dickinson Wright.

It “lays the groundwork for the explanation for the revisions to the financial statements. Nothing about the release has an ‘enforcement’ centric tone.”

Still, the Credit Suisse announcement concerned analysts.

“(It) does not help investor sentiment and it does not help in rebuilding trust,” said Andreas Venditti from Vontobel.

Daniel Bosshard from Luzerner Kantonalbank described Credit Suisse as “a major construction site” and said “the share is only suitable for turnaround speculators.”

In February, Credit Suisse reported that 2022 brought its biggest annual loss since the 2008 global financial crisis after rattled clients pulled funds from the bank, and it warned that a further “substantial” loss would come this year.

Among a string of scandals, Credit Suisse was hard hit by the collapse of U.S. investment firm Archegos in 2021 as well as the freezing of billions of supply chain finance funds linked to insolvent British financier Greensill.

The bank was also rocked by a prosecution in Switzerland involving laundering money for a criminal gang.

Meanwhile, credit ratings agency Standard & Poor’s downgraded Credit Suisse to just one level above so-called junk status in November last year.

Credit Suisse Warns Investors of Naked Short Covering

The SEC released Credit Suisse’s 6-K filing where the bank warns investors of potential losses due to naked short covering, more on that below.

Credit Suisse took a massive hit of $4.09 billion in Q3 and hints at occurring losses in an upturn in markets.

The bank recently called out AMC Entertainment predicting shares to fall to $0.95 despite the bank’s shares trading below the movie theatre chain company.

Now Credit Suisse is hiring 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster.

In this 6-K filing, Credit Suisse warns investors of potential losses due to the high possibility of naked short covering.

In a statement, the bank says, “Conversely, to the extent that we have sold assets that we do not own, or have net short positions, in any of those markets, an upturn in those markets could expose us to potentially significant losses as we attempt to cover our net short positions by acquiring assets in a rising market.

“Market fluctuations, downturns and volatility can adversely affect the fair value of our positions and our results of operations.

Adverse market or economic conditions or trends have caused, and in the future may cause, a significant decline in our net revenues and profitability.”

The closing of naked shorts would send affected securities soaring as buying momentum compounds.

Heavily shorted stocks may squeeze in the process, but the results would be disastrous to short sellers.

Market News Published Daily

Market News Today - MULN reverse stock split
Market News Today – Credit Suisse Clients are Withdrawing Billions of Dollars.

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Credit Suisse Warns Investors of Naked Short Covering

Credit Suisse Naked Short Covering
Market News: Credit Suisse warns investors of naked short covering.

The SEC released Credit Suisse’s 6-K filing where the bank warns investors of potential losses due to naked short covering, more on that below.

Credit Suisse (CS) took a massive hit of $4.09 billion in Q3 and hints at occurring losses in an upturn in markets.

The bank recently called out AMC Entertainment predicting shares to fall to $0.95 despite the bank’s shares trading below the movie theatre chain company.

Now Credit Suisse is hiring 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster.

Here’s the latest market news.

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Related: Credit Suisse Clients Are Withdrawing Billions of Dollars (2023)

Credit Suisse Naked Short Covering

Credit Suisse short covering news.
Credit Suisse short covering news.

In this 6-K filing, Credit Suisse warns investors of potential losses due to the high possibility of naked short covering.

In a statement, the bank says, “Conversely, to the extent that we have sold assets that we do not own, or have net short positions, in any of those markets, an upturn in those markets could expose us to potentially significant losses as we attempt to cover our net short positions by acquiring assets in a rising market.

“Market fluctuations, downturns and volatility can adversely affect the fair value of our positions and our results of operations.

Adverse market or economic conditions or trends have caused, and in the future may cause, a significant decline in our net revenues and profitability.”

The closing of naked shorts would send affected securities soaring as buying momentum compounds.

Heavily shorted stocks may squeeze in the process, but the results would be disastrous to short sellers.

I’m curious to know your thoughts.

Leave a comment down below.

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Read: Credit Suisse Shares Are Now Worth Less Than AMC


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Stocks and Crypto Are Under Attack by Banks and Hedge Funds

Stocks and Crypto

Stocks and crypto are falling.

SPY stock (S&P 500) has fallen below $400 per share and is now down more than 17% this year to date.

Bitcoin is down more than 37% this year and has fallen below $30,000 again.

Banks and hedge funds have been selling off both the stock and crypto markets as the need for liquidity rises.

Will stocks and crypto go back up again?

Let’s discuss it.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

Banks and hedge funds tank the markets

Banks and hedge funds have been responsible for essentially every market crash in history.

But nothing has truly been done about the systemic risks caused by these financial institutions.

Today we’re seeing the collapse of both stocks and crypto.

Massive selloffs in the market are providing liquidity to institutions in order to keep their losing short positions open.

On top of these fire sales, the amount of shorting has increased to hedge against losses from last year’s bull run.

Short sellers lost billions of dollars last year when the ‘meme stock’ frenzy took over Wall Street.

Today, hedge funds are liquidating the markets to keep up with increased margin requirements this new year.

But at what cost?

Investors invested in great companies are losing money not because of business fundamentals, but because of the lack of regulation in the financial system.

Crypto developers say crypto crash was coordinated

LUNA and UST developers said this week’s crash was caused by a coordinated attack from hedge funds and big banks.

It comes as no surprise since hedge funds and big banks have been colluding to short specific stocks in the market.

The fed has opened investigations looking into these serious issues.

Goldman Sachs’ dark pools are currently under investigation, Archegos founder Bill Hwang was recently arrested with 11 criminal counts, and the list goes on.

Subpoenas went out to several hedge funds and banks earlier this year – one of the hedge funds under investigation is Citadel, according to Bloomberg sources.

Word is spreading on Twitter and Reddit and BlackRock and Citadel are responsible for the massive selloffs in the crypto market too.

Deeper due diligence is being done on this matter.

Citadel or not, coordinated attacks on securities is something the government should be taking seriously.

Will stocks and crypto bounce back?

It’s difficult to look ahead when the markets are bleeding, after all you are seeing your net worth drop quicker than it took for it to reach new heights.

If you’re worried about today’s markets, you might have been introduced to a short-term way of investing.

While certain plays could be short-term trades, majority of the market tends to be a long-term speculative game.

We bet that the companies we’re investing in will do great over the span of 10 years or so and let the markets go through the ups and downs, at least in the case of the stock market.

Crypto has and will always have greater potential than it has previously seen.

And crypto heads know this.

Is this the end of the stock and crypto markets?

Absolutely not.

What we’re seeing today has happened several times over the course of both markets.

After a climb, there’s always some setback that scares investors momentarily.

But if there’s something we can always learn from historic patterns, it’s that stocks and crypto have always gone right back up and set even bigger all-time highs.

Is now the perfect time to buy?

is now the perfect time to buy stocks and crypto?
Is now the perfect time to buy stocks and crypto?

It seems both stocks and crypto are having a difficult time finding a bottom.

And trying to time it has always proven that no one can time the markets perfectly.

Searching for a good entry point could just as likely end up hurting you if the markets were to suddenly go through a reversal.

Skilled long-term investors know that when the markets are red, you buy and hold.

Because the price of securities always goes up after a dreadful period of nonstop downtrend.

The upcoming reversal will have you wishing you’d have stocked up on stocks and crypto today.

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Related: Are Institutions Preparing to Close Short Positions in AMC?

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