Would you like to buy a bank that’s issued six profit warnings in the last seven quarters? One nursing not one but two multi-billion dollar risk-management disasters, to which it responded with a bit of alleged collusion (that didn’t work) and the apparently shocked realization that a major global bank needs someone looking after counterparty risk, especially in not-especially-profitable business lines? One that’s essentially headquartered in court, where its track record is no better than its quarterlies? One where new executives are greeted on their first day by the police? One that does loads of spying, just not on the right people (despite a client list chockful of unsavory spymasters)? Whose reaction to the Russian sanctions was (allegedly) to kindly ask clients to shred everything? Whose shareholders are itching to sue the pants off of everybody involved? Whose own CEO thinks that buying it would be "really stupid"?
Yea, State Street doesn’t, either. Even at this price.
Shares fell as much as 6.3% to 6.18 Swiss francs, hovering close to the lowest level since data going back to 1989. State Street, which had earlier declined to comment on the merger, later changed tack to say that it’s not pursuing any acquisition or business combination with Credit Suisse…. Swiss finance blog Inside Paradeplatz on Wednesday sparked a 15% rally in Credit Suisse shares from an intraday low. But the boost didn’t last long as the shares got roiled Thursday after the bank’s Chief Executive Officer Thomas Gottstein said he would not comment on the topic and dismissed the question as “stupid.”
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