February 9, 2023
Today’s chilling earnings report from Credit Suisse (CS) one of the oldest banks in Switzerland, that it had its largest banking loss since the financial crisis of 2008, sent the stock to down to almost $3.00/share. And that CS expected more “substantial” losses this year, as clients pulled billions of dollars from their wealth management sectors.
Last week the Geneiss platform filed for bankruptcy which makes it the fourth crypto lender to fail since last Spring, joining the banruptcies of Celsius Network, and Voyager Digital, leaving customers with billions of dollars of losses.
Also, earlier this week the giant Indian conglomerate The Adami Group of stocks suffered a severe drop in price as a research report from the Hindenberg Group alledged that the company held a web of fraudalent activities.
After suffering an almost 50% decline in prices, the market prices of the major companies staged a bounce on the basis of lengthy rebuttal issued by the Company.
Interesting to note that a recent news item mentioned that Credit Suisse was halting its loans secured by Adami Group bonds. The question is how much risk exposure does CS have to these bonds?
More and more it is looking like the giant easy money bubble fuelded by the Central Bankers to stabilize the markets after the 2008 financial crisis, may be coming to an end.
As Warren Buffett has said: “You don’t know who is swimming naked until the tide goes out.”