Credit Suisse shares fall due to refusal to publish report and problems with SEC
2023.03.09 13:25
Credit Suisse shares fall due to refusal to publish report and problems with SEC
By Kristina Sobol
Budrigannews.com – After receiving a last-minute call from the Securities and Exchange Commission (SEC) of the United States, Credit Suisse decided to delay publishing its annual report due to concerns regarding its prior financial statements.
After a series of scandals and setbacks that have sent its shares plunging and led clients to withdraw billions of dollars, Credit Suisse is attempting to rebuild investor confidence after the unusual intervention by the U.S. regulator is the latest blow.
On Thursday, Credit Suisse shares in Zurich were close to their all-time low, but they later recovered much of their 6% loss.
“Some open SEC comments about the technical assessment of previously disclosed revisions to the consolidated cash flow statements in the years ended December 31, 2020, and 2019, as well as related controls,” according to the Zurich-based bank, the SEC called it late on Wednesday.
A number of cash flows, including share-based compensation and foreign exchange hedges, had been rebooked by the bank in a new way.
After the call, Credit Suisse said that it had decided to put off publishing its annual report for 2022.
It stated that “management believes it is prudent to briefly delay the publication of its accounts in order to understand more thoroughly the comments received,” and that “the financial results for 2022 are unaffected.”
A spokesperson for the SEC stated that the organization would not comment on the situation.
According to a person with knowledge of the situation, there were no other regulatory authorities involved.
Credit Suisse had informed the Swiss financial regulator Finma of the publication’s delay.
Finma stated, “We are in contact with the bank.”
Analysts were concerned by the Credit Suisse announcement, which raised questions about when the annual report will be released.
Andreas Venditti of Vontobel stated, “(It) does not help in rebuilding trust and does not help investor sentiment.”
In an effort to reclaim its fortunes, Switzerland’s second-largest bank has begun a significant restructuring of its operations, including the establishment of a separate investment banking division known as CS First Boston.
Luzerner Kantonalbank’s Daniel Bosshard said of Credit Suisse, “the share is only suitable for turnaround speculators.” He also described the company as “a major construction site.”
After agitated customers withdrew funds from the bank, Credit Suisse announced in February that 2022 would see its largest annual loss since the global financial crisis of 2008, and it also stated that this year would see a further “substantial” loss.
Credit Suisse was hard hit by a number of scandals, including the 2021 collapse of the US investment firm Archegos and the freezing of billions of dollars in supply chain finance funds linked to the bankrupt British financier Greensill.
A Swiss prosecution involving the laundering of funds for a criminal gang also rocked the bank.
In the meantime, in November of last year, the credit rating agency Standard & Poor’s downgraded Credit Suisse to just one level above “junk” status.
