{"id":1676437,"date":"2022-10-06T15:51:36","date_gmt":"2022-10-06T19:51:36","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1676437"},"modified":"2022-10-06T15:52:09","modified_gmt":"2022-10-06T19:52:09","slug":"moodys-says-credit-suisse-could-suffer-3-billion-loss-in-2022","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/moodys-says-credit-suisse-could-suffer-3-billion-loss-in-2022\/","title":{"rendered":"Moody\u2019s says Credit Suisse could suffer $3 billion loss in 2022"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmoodys-says-credit-suisse-could-suffer-3-billion-loss-in-2022%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1676437&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Saeed Azhar<\/p>\n<p>NEW YORK (Reuters) \u2013     Rating agency Moody\u2019s Investors Service expects losses for Credit Suisse to swell to $3 billion by year-end, potentially bringing its core capital below the key 13% level, Moody\u2019s lead analyst on the bank told Reuters.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>Credit Suisse has reported 1.9 billion francs ($1.92 billion) of losses in the first half of the year. In July, the bank said it expected to operate with a common equity tier 1 (CET1) ratio of between 13% and 14% for the rest of 2022.<\/p>\n<p>\u201cWe are forecasting further losses in the second half of the year,\u201d said Alessandro Roccati, senior vice president in the financial institutions group of the rating agency. \u201cWe\u2019re looking at $3 billion losses for the full year, which means the CET1 is going to be slightly below 13%.\u201d<\/p>\n<p>If the core capital ratio stays \u201cconsistently\u201d below 13% it would be \u201ccredit negative\u201d for the bank, Roccati said in an interview.<\/p>\n<p>The Swiss lender has been battered by scandals and losses and is racing through a restructuring plan under new Chief Executive Ulrich Koerner. Wild market swings and a social media storm are making it increasingly difficult for the bank to stem losses and regain its footing.     Moody\u2019s downgraded its rating on Credit Suisse in August and has since kept its negative outlook. The downgrade reflected how difficult it will be for Credit Suisse to reposition its investment bank amid slowing economic growth and bumpy markets. Earlier Thursday, S&#038;P Global affirmed its rating and said the outlook remains negative for the bank.\u201dThe current market environment is not supportive of restructuring and is not supportive of Credit Suisse\u2019s current capital market business model,\u201d Roccati said.    \u201cDeteriorating market conditions have affected the potential realisation value of businesses they were considering to sell.\u201d<\/p>\n<p>In July, Credit Suisse announced its second strategy review in a year and replaced its chief executive, bringing in restructuring expert Koerner to prune its investment banking arm and cut more than $1 billion in costs.     The bank is considering measures to scale back its investment bank into a \u201ccapital-light, advisory-led\u201d business, and is evaluating a sale of its securitised products business.<\/p>\n<p>Credit Suisse\u2019s U.S. businesses focusing on structured products and leveraged finance previously generated big profits because of low interest rates, but those fortunes have now changed. \u201cNow clearly, interest rates are significantly increased. And the credit conditions are not benign anymore.\u201d    \u201cThe kind of business model, which is in any case geared towards sort of high yield products and complex products, is not a business which will deliver strong profits.\u201d<\/p>\n<p>Credit Suisse suffered billions in losses last year, including a $5.5 billion hit from the default of U.S. family office Archegos Capital Management and the shuttering of $10 billion of supply chain finance funds linked to collapsed British financier Greensill.<\/p>\n<p>The bank faces big hurdles for potential asset sales, Roccati said.<\/p>\n<p>\u201cGiven the jittery markets in the last couple of months, and the decrease in asset prices, that strategy is probably unattainable,\u201d he said.<\/p>\n<p>($1 = 0.9892 Swiss francs)<\/p>\n<p> (Reporting by Saeed Azhar; additional reporting by Oliver Hirt; Editing by Lananh Nguyen and Chizu Nomiyama)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/moodys-says-credit-suisse\/attachment\/file-photo-logo-of-swiss-bank-credit-suisse-is-seen\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/tagreuters.com2022binary_LYNXMPEI9510O-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI9510O-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Saeed Azhar NEW YORK (Reuters) \u2013 Rating agency Moody\u2019s Investors Service expects losses for Credit Suisse to swell to $3 billion by year-end, potentially bringing its core capital below<\/p>\n","protected":false},"author":66,"featured_media":1889535,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1676437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_finder_url":"https:\/\/www.oann.com\/business\/moodys-says-credit-suisse\/?utm_source=rss&utm_medium=rss&utm_campaign=moodys-says-credit-suisse","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1676437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1676437"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1676437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1889535"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1676437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1676437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1676437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}