"Our capital position at the moment is strong."Īs of last week, board chair Axel Lehmann (oh god, that's really his name) is thinking about splitting the bank in three parts, one of which would be a "bad bank" to house toxic assets. Lehman famously announced just a week before its collapse: That's because there's only so much you can tell from public financials. Where in the balance sheet did CS mention those risks at the time? These included Archegos, Greensill, and Credito Real, which cost the bank a combined $7.3 billion. Through its investment bank, CS has $860 billion in levered exposure - only 1% of which need blow up to wipe out their entire market cap.Īfter all, none of their recent and humiliating blowups were visible from the balance sheet either. That's because the balance sheet isn't the problem here.Īs always, it's what's OFF-balance sheet that counts. But anyone familiar knows this is a joke. To be fair, the balance sheet looks ok with a LCR of 203% and CET1 of 13.5%. CS is now allegedly in private talks, begging for capital. Investors may as well have soaked their money in kerosene, stuffed it in oil drums, and lit that sucker up.īut never mind the shameful track record. Over the last 15 years, CS shares have fallen by 95% in what can only be described as a total demolition of shareholder value. That's one way of putting it, now that CS is on the brink of becoming a penny stock, down another 10% this morning. "I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity of the bank." In his note, Koerner also chastises employees for worrying: There's a funny stigma in media around naming names, but of course the rumors are about Credit Suisse (CS).Ī leaked internal memo shows CEO Ulrich Koerner conceding that the bank is indeed at a "critical moment." Word on the street has it that a "major international investment bank" is about to turn insolvent. Media isn't saying who, but it's well-known. Stablecoin Issuer Tether Ordered to Produce Documents Showing Backing of USDT Following the Terra crash, EU regulators have been working on regulations that can significantly impact stable coins. ➡️ September 2022, NY Judge ordered Tether to produce financial reports regarding USDT backing reserves as part of a lawsuit that alleges Tether conspired to issue USDT as part of a campaign to inflate the price of bitcoin.Ĭurious to see how this unfolds, what the effect on the market will be, and most importantly - how this will affect the stable coin regulations. (Roche was removed from all class action lawsuits including US Binance, Tron, BitMex, Tether, Bitfinex). ➡️ August 2022, Tether files to remove Roche Friedman from the class action following leaked videos. ➡️ January 2022, CoinDesk joins a court case following denied request to obtain details on the reserves backing $78.4 billion of #stablecoins. They also accused the firm of maintaining less than 4 percent in cash reserves. The two plaintiffs claim that 'the company’s practices are “immoral, unethical, oppressive, and unscrupulous'. ➡️ In December 2021, another lawsuit hits in NY. He added that the stablecoins issued are destroyed when repaid, so as not to increase the circulating supply'. ➡️ Alex Mashinsky, the CEO of Celsius, stated that 'Tether occasionally issues its dollar-pegged cryptocurrency as a loan in exchange for cryptocurrencies like BTC and ETH this contravenes the company's own terms and the fundamental principles of stablecoins. ➡️ In October 2021, #CFTC fined Tether with $41M because the company only held sufficient fiat reserves in its accounts to back the USDT in circulation only for a quarter of a 26-month period during 2016-18. The court fined them with $18.5M, and restricted USDT from NY. Tether admitted to having only 74% of USDT backed by reserves. ➡️ In 2019, Bitfinex was under investigation over alleged $850M loss. This led to market skyrocketing to $795 billion in late 2017. ➡️ The initial stated that Tether issued unbacked #USDT which Bitfinex would later purchase to increase the price.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |