FT News Briefing Credit Suisse’s big slump
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Feb 10, 2023 China's retreat from a major internet pipeline sparks concerns over tech competition with the U.S. Meanwhile, Disney navigates through management disputes as an activist investor withdraws. On the financial front, Credit Suisse faces severe losses and major restructuring, signaling challenges ahead for the banking sector. Super Bowl betting is expected to hit a record $16 billion, underscoring the event's massive economic impact. With all these developments, it’s a rollercoaster of corporate maneuvering and financial drama!
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Credit Suisse's Troubles
- Credit Suisse reported its worst annual loss since 2008, nearly $8 billion.
- The bank's restructuring plan involves shifting from investment banking to wealth management.
Wealth Management Woes
- Credit Suisse's wealth management division has suffered significant losses due to client withdrawals.
- This outflow stems from damaging social media rumors in early October.
Investment Banking Spin-off
- Credit Suisse plans to spin off its investment banking division and acquire M. Klein & Company, a boutique advisory firm.
- Michael Klein, a former Credit Suisse director, will lead the new spun-off investment bank.