FAST FIVE: Credit Suisse Craters To Record Low After Revealing Staggering $88 Billion Bank Run

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The outflows were especially acute at the key wealth management unit, where they amounted to 10% of assets under management.

AT UBS Group AG, investors added more than $17 billion to the wealth management unit in the third quarter. Julius Baer Group Ltd. said on Monday that it saw a “clear improvement” in new money flows since the end of June, with wealthy clients adding a net 4.1 billion francs in the four months through October.

Ethos Foundation, a proxy advisor, said more steps may be needed to restore investor confidence than the bank has so far outlined.

“Maybe they can do both, but it remains to be seen.” Besides the massive bank run which has drained the bank's capital, the Zurich-based bank said it expects losses in both the wealth management division and its investment banking unit due to “subdued activity, market conditions, continued outflows of customer assets and the sale of non-core businesses.” The bank's grim outlook underscores the urgency for the bank's latest (and soon to be former) Chairman Axel Lehmann to put Credit Suisse on a sustainable footing again through a sweeping overhaul that will see its investment bank carved up and greater focus placed on private banking.

In conclusion, the dismal Credit Suisse news provides a handy comparison between the fiat and crypto regimes: FTX was hit with record bank run, and filed for bankruptcy in days, with no central bank to bail it out.

Categories: ZH