RESEARCH TRIANGLE PARK – Concerns about the financial future of Credit Suisse are overblown, says an analysis from Bloomberg News.
The Swiss financial conglomerate has a big presence in RTP and continues to hire. Concerns about Credit Suisse rose over the weekend, however, based on a variety of media reports and statements from its own management about possible responses to financial situations.
Paul J. Davies, writing for Bloomberg, wrote Tuesday that it’s “in a tight spot, but it isn’t ‘on the brink,’ as the fevered typists of social media imagined over the weekend. The Swiss bank, however, is going through its darkest hours at exactly the worst time, when markets are volatile and everyone is nervous about what’s around the corner. Disappointment is still more likely than disaster.”
Davies’ post was published by The Washington Post.
Shares in Credit Suisse, which has big presence in Triangle, drop on financial worries
“The bank has more than enough capital to run its business. It just isn’t making good enough returns,” he wrote.
“To change that picture quickly, it needs money to pay for a restructuring — analysts estimate potentially $4 billion through asset sales or capital raising. Without that, the less it can change and the longer its troubles will last. The weaker it appears, the costlier it’ll be to raise any money and the harder it will get squeezed by potential buyers of any of its assets. Markets feed on desperation, and you’ll find fewest friends when you’re most in need.”
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