03/16/2023 (Thu) 18:10
The latest bank on the chopping block appears to be Credit Suisse, a Swiss bank whose shares plunged this week after the company announced a “material weakness” problem with its operations.
Shares in Credit Suisse fell to an all-time low this week following the announcement, which came just days after Silicon Valley Bank (SVB), Signature Bank, First Republic, and Pac West entered a financial death spiral from the contagion.
Switzerland’s second-largest bank, Credit Suisse confirmed some $8 billion in losses in 2022 because of the material weakness. Now, the United States Securities and Exchange Commission (SEC) is warning the bank that it is in jeopardy of providing a misstatement over the accounting of cash flows in 2019 and 2020, which is why it delayed its annual report until this week.
According to Credit Suisse, the “weakness” in its books stems from a “failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements.” In other words, Credit Suisse is a poorly run bank that likely committed all kinds of fraud that were ignored or overlooked because had it been exposed, the company would have gone kaput a long time ago.https://www.naturalnews.com/2023-03-16-credit-suisse-about-to-collapse-material-weakness.html
Ken Griffin, the founder of Citadel hedge fund, has stated that the Federal Reserve’s rescue package for Silicon Valley Bank is a clear indication that American capitalism is “breaking down before our eyes,” according to a report this week.
He argued in an interview with the Financial Times that taxpayers should not have to bail out institutional investors following the Fed’s intervention to prevent contagion in the US banking sector following SVB’s collapse in Santa Clara.
“The US is supposed to be a capitalist economy, and that’s breaking down before our eyes,” he said. “There’s been a loss of financial discipline with the government bailing out depositors in full.”
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