Survey on the Collapse of Credit Suisse

Credit Suisse– Beginning of the End

The collapse of Credit Suisse, once a symbol of Swiss banking prowess, has sent shockwaves through the global financial industry. The bank’s demise has dealt a serious blow to Switzerland’s reputation as a stable, regulated, and trustworthy financial center, potentially paving the way for rivals to overtake the country’s leading position in the wealth management industry.

The collapse also raises questions about the Swiss and global financial systems’ stability and highlights the urgent need for stronger corporate governance and accountability.

The problems at Credit Suisse have been brewing for years, fueled by a series of scandals, mounting losses, and a crisis of confidence. The bank was already struggling with regulatory issues and high-profile failures before the COVID-19 pandemic struck, further straining its balance sheet. In 2020, Credit Suisse reported a net loss of $353 million due to hefty charges related to litigation and its exposure to collapsed supply chain finance firm Greensill Capital.

The final nail in the coffin came last week when Swiss authorities brokered a takeover of the bank by larger rival UBS, effectively wiping out the holdings of Credit Suisse bondholders. Credit Suisse’s AT1 bondholders, who were supposed to be the first to absorb losses, were left with nothing, while shareholders received $3.23 billion. The decision to wipe out bondholders’ holdings has raised questions about the fairness and transparency of the rescue deal and has further eroded Switzerland’s reputation for stability and regulation.

Impact on the Swiss Economy

The downfall of Credit Suisse has raised multiple concerns as it could disrupt Switzerland’s view as a secure financial system. This was made worse as several scandalous controversies have emerged over the years and affecting Credit Suisse’s reputation.

According to sources, the BAK Economics think-tank, the merger of UBS and Credit Suisse could lead to significant job losses, potentially affecting up to 12,000 staff across the two banks. The overlap in services and branches throughout Switzerland means that there will be consequences for external contractors and service firms as well.

The majority of the positions at risk are anticipated to be in Credit Suisse’s workforce, especially those in Switzerland, and include roughly 17,000 positions and an equal number of workers in its investment bank division. UBS positions, however, might also be affected. Jobs on both sides are in jeopardy due to overlapping areas of responsibility.

Hence, Real Research, an online survey app, launched a study to determine the events of this crash. Hurry and answer the survey on the collapse of Credit Suisse on the Real Research app from March 25, 2023. After that, you will receive 60 TNCs as a reward.