Credit Suisse warns of $1.6 billion loss after clients pull money
Customer outflows come at a precarious time for the bank, which weeks ago launched a sweeping overhaul of its operations. Credit Suisse Group AG warned it would lose around $1.6 billion in the fourth quarter after customers pulled their investments and deposits over concerns about the bank’s financial health.
Switzerland’s No. 2 bank by assets said outflows were around 6% of its total $1.47 trillion assets, or around $88.3 billion, between Sept. 30 and Nov. 11. Customers in its wealth-management arm – its main business serving the world’s rich – removed $66.7 billion from the bank. Credit Suisse in late October said a social-media frenzy around its health was causing large outflows. The fast pace of withdrawals meant the bank’s liquidity fell below some local-level requirements, the bank said. It said it maintained its required group-level liquidity and funding ratios at all times. Banks must keep enough liquid assets on hand to meet expected cash outflows in a 30-day period, under post-financial-crisis-era rules. Credit Suisse’s stock fell 5% Wednesday. If sustained, the decline would take the price below its lowest closing level of Sept. 29, according to FactSet. The shares are down nearly 60% this year. The cost to insure the bank’s debt against default rose Wednesday.
The warning comes at a precarious time for the bank, which weeks ago launched a sweeping overhaul of its operations. Credit Suisse received shareholder approval Wednesday on a plan to raise more than $4 billion in new stock. It is in the process of selling a large group within its investment bank to free up capital, as part of its recovery effort. The new stock is being sold to new and existing investors. Saudi National Bank said it would take a stake of up to 9.9% (and notice it's not 10% thus skirting the disclosure rule-gee what habbened during the 2008 mkt event when all the Arabs bought into the failed banks…..) as a new shareholder. Some analysts are concerned the new capital raising may not be enough if Credit Suisse’s revamp doesn’t go as planned. The bank’s capital needs depend on selling and exiting some businesses, and on how its continuing businesses perform.
https://www.foxbusiness.com/markets/credit-suisse-warns-1-6-billion-loss-after-clients-pull-money
Blythe Masters-Crdit Suisse
2021–present Credit Suisse
Chair of Credit Suisse Holdings (USA), Inc. (2022–present)
Chair of the Digital Transformation and Technology Committee (2022–present)
Member of the Governance and Nominations Committee (2022–present)
Member of the Compensation Committee (2021–2022)
Member of the Risk Committee (2021)
2019–present Motive Partners
Motive Partners, Founding Partner (2019-present)
Member of the Board of Directors of Forge Global Holdings, Inc. (Listed company) (2022-present)
President of Motive Capital Corporation II (SPAC) (Listed company) (2021-present)
Member of the Board of Directors of CAIS (2021-present)
Consultant of Apollo Global Management (Listed company) (2021-present)
Nov 22
Blythe Masters’ Motive to Buy Berlin VC Embedded/Capital
https://ca.finance.yahoo.com/news/blythe-masters-motive-nears-deal-000100155.html
Nov 9th
Credit Suisse sells most of its securitized products business to Apollo as it speeds up restructure
https://www.cnbc.com/2022/11/15/credit-suisse-to-sell-securitized-products-business-to-apollo-as-it-accelerates-restructure.html
2015–2018 Digital Asset Holdings LLC Chief Executive Officer
Dec 2018
Blythe Masters, Wall Street’s best-known blockchain cheerleader, resigns from Digital Asset Holdings
Masters is stepping down as CEO, but will remain a board member, strategic advisor and a shareholder.
https://www.cnbc.com/2018/12/19/blythe-masters-wall-streets-best-known-blockchain-cheerleader-resigns-from-digital-asset-holdings.html
1991–2015 J.P. Morgan Chase & Co.
Head of Corporate & Investment Bank Regulatory Affairs (2010–2014)
Head of Global Commodities (2007–2014)
Chief Financial Officer Investment Bank (2004–2007)
Head of Credit Policy and Strategy and Global Credit Portfolio (2002–2004)
Co-Head of Asset Backed Securitization and Head of Global Structured Credit (2000–2002)
Co-Head of North American Credit Portfolio (1998–2000)
Head of Global Credit Derivatives Marketing (1995–1998)
Various Roles in Fixed Income Markets (1991–1995)
https://www.credit-suisse.com/about-us/en/our-company/our-management/board-of-directors/blythe-masters.html
https://finance.yahoo.com/quote/CS