Credit Suisse In Crisis Switzerland's second-largest bank and the world's eighth-largest bank, Credit Suisse is on the verge of collapsing. How did Credit Suisse's situation got out of hand? In 2022 Credit Suisse was fined $2.1B in a cocaine cash laundering case and the mess just worsened. Earlier this year Credit Suisse announced significant lay-offs and experienced its largest yearly loss since the 2008 financial crisis after a major shareholder indicated it would be unable to offer any more cash due to regulatory limitations. Then CS share fell to an all-time low. But the bank shares recover to some extent as it said that it would borrow up to $54B from the Swiss Central Bank. 

Losses resulting from the collapse of investment funds are Archegos Greensil started the sell-off in 2021.About 8 months after being hired to turn around the falling bank Antonio Horta-Osorio resigned in January 2022 due to a violation of Covid-19 regulations. Then in July 2022, Ulrich Koerner, the new CEO, and a restricting expert launched a strategic review but it was not well received by investors.

Customers left also left the bank as a result of an unfounded rumor that the institution would fail in Autumn but the bank reported its largest annual loss 7.29B Swiss Francs since the financial crisis. CS acknowledged that customers had withdrawn 110B Swiss Francs in the 4th quarter.

CS asked investors for 4B Swiss Francs in December 2022. Also, last year Saudi Prince Mohammed bin Salman instructed the government backed Suadi National Bank to invest $1.4B in CS as the result of the rising oil prices. The Saudi Investment interest was designed to mark the country's grand entry into the global market banking industry and solidify its versioning reputation as an oil fueled powerhouse of investing.

The largest land in the kingdom by asset, the Saudi lender bought nearly 9.9% of CS but it now stands to lose about 1.17B on the deal. The bank's largest sponsor Saudi National Bank informed reporters that due to regulatory restrictions it was unable to provide the bank with further funds but express satisfaction with the turnaround plan.

Founded way back in 1856, CS shares are down 30% this year to date and have lost over 70% in the past year. Credit Suisse shares have lost more than 75% of their value over the past twelve months.

Do you think it's a good move forUBS to purchase Credit Suisse amid fallout from U.S. bank collapses?