SolutionsHire top legal talent for any scope of workGet Started Contact us to find the best fit for any in-house or law firm role Testimonials Trusted by the world's leading legal departments FAQ Frequently asked questions about working with Legal.ioEmployer Resources Tools and guides for hiring managers Six months after Credit Suisse rescue, investigation continues into its financial health.
U.S. authorities are currently investigating Credit Suisse, a major Swiss bank, over allegations that it misled investors about its financial health prior to a state-backed rescue by UBS. The investigation comes six months after UBS stepped in to salvage its rival in a government-orchestrated rescue.
Credit Suisse has received requests for documents and information from several agencies, including the U.S. Securities and Exchange Commission (SEC), the U.S. Justice Department, and Swiss regulator FINMA. These requests are part of an effort to assess whether the bank misled investors about its financial health as it teetered towards a state-backed rescue.
Three U.S. class-action lawsuits have also been filed against Credit Suisse, as well as current and former directors, alleging misleading statements about customers withdrawing cash in late 2022. Credit Suisse, which is now part of UBS, is cooperating with the authorities.
The Rescue
UBS swept in to salvage its rival in March after tens of billions of dollars left Credit Suisse amid a crisis of confidence in a market already rattled by a collapse of some regional U.S. lenders. This rescue operation was the biggest banking deal since the global financial crisis and resulted in a lender with a balance sheet of $1.7T.
The Aftermath
The inquiries now highlight a potential risk of fines and penalties for UBS. Credit Suisse was hit by ₣110.5B ($124B) of outflows in the last three months of 2022 which pushed the bank close to the brink. These outflows continued in the first half of 2023.
In the early hours of March 16, 2023, Credit Suisse said it intended to borrow from the SNB through a facility called Emergency Liquidity Assistance (ELA) to “pre-emptively” bolster its cash buffers. However, after Credit Suisse’s reassurances that the ₣50B franc injection would facilitate its turnaround and told staff and clients it remained a viable business, the bank needed more cash and was running out of collateral to pledge at the central bank.
The investigation into Credit Suisse could have far-reaching implications for both the bank itself and the wider banking industry. If found guilty of misleading investors, Credit Suisse could face significant fines and penalties, which could further damage its already fragile financial position.
Moreover, this case could set a precedent for how authorities handle similar situations in the future. It could lead to stricter regulations for banks regarding their disclosure practices, potentially forcing them to be more transparent about their financial health.
The investigation could also impact investor confidence in banks. If investors feel they cannot trust the information provided by banks, they may be less willing to invest in them. This could lead to lower capital levels for banks, making them more vulnerable to financial shocks.
Finally, this case highlights the importance of robust regulatory oversight in maintaining stability in the banking sector. Without effective regulation, banks may engage in risky behavior that could threaten their own survival and potentially destabilize the entire financial system.
Stability AI has lost two key executives.
LexisNexis has announced its acquisition of Belgian startup Henchman with the goal being to enhance its AI-powered legal solutions and integrate Henchman's advanced contract drafting capabilities.
Legal operations professionals are turning to AI to drastically improve efficiency and reshape the legal industry, as reported by Legal Dive.
For many years, Barbie has been a beloved icon in the toy industry. Since her introduction in 1959, this blonde, blue-eyed fashion doll has won the hearts of countless children and collectors worldwide. The powerhouse behind Barbie's phenomenal success is Mattel, the toy manufacturing giant that birthed her and turned her into a global sensation. To protect their intellectual property and uphold Barbie's brand integrity, Mattel has been relentless in defending their trademarks related to Barbie through stringent policies and real-world trademark disputes. This article will delve into Mattel's trademarks and their unwavering dedication to preserving the Barbie legacy.
The Supreme Court will hear two landmark cases regarding content moderation on social media.
Kirkland & Ellis announced that it was that it was promoting exactly 200 attorneys to partner this year. The total is slightly less than last year's 205, making it the first time the class has decreased year-over-year in the last eight years.
Ah, the team meeting – it’s one of those sacred office rituals, its contours familiar to workers across the country. We gather up our notepads, head to the breakout room, listen to people making a series of loosely connected points with only a vague relevance to our job, before everyone leaves wondering ‘What was the point in that?’ Yes, it’s fair to say that many meetings do not inspire employees, aid workflow, or get much done. Still, there are always going to be times when colleagues need to get together to talk to each other. How can you transform meetings from pointless and dull to productive and exciting? Let’s find out!
The number of abandoned mergers and acquisitions is at its highest in years, as the current U.S. administration is pursuing a more aggressive antitrust policy, pushing for more lawsuits and fewer settlements.
The TR report shows corporate legal depts are focusing on effective advising, operational efficiency, business enablement, and risk management, utilizing tech like Gen AI to enhance legal processes.
