Skip to main content

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.”

Credit Suisse Flirts With 30-Year Low as State Street Denies Talks [Bloomberg]
Credit Suisse CEO Calls Takeover Talk ‘Really Stupid’ [WSJ]

For more of the latest in litigation, regulation, deals and financial services trends, sign up for Finance Docket, a partnership between Breaking Media publications Above the Law and Dealbreaker.


Getty Images

Layoffs Watch ’22: State Street Might Like To Buy A Smaller Credit Suisse

What will come first? The cannings or the unsolicited offer?

Photo: Getty Images.

Credit Suisse Basically Headquartered In Court These Days

It’s not like the bank’s got other pressing issues it needs to deal with now, right?

Photo: Getty Images.

At Last Thomas Gottstein Has A Credit Suisse Fire Of His Own Making To Fight

The rock of respectability has rolled back down the Alps.

Photo: Getty Images.

Credit Suisse Traders Exactly Half As Valuable To Bank As Wealth Managers

The Swiss have, as is their wont, precisely quantified the investment bank’s status.

Photo: Getty Images.

Credit Suisse To Stop Doing Thing It Wasn’t Making Any Money On Anyway

But which was putting it a huge legal, regulatory and financial risk for nothing.

By World Economic Forum from Cologny, Switzerland [CC BY-SA 2.0], via Wikimedia Commons

Tidjane Thiam Not Swiss Enough To Fix Credit Suisse

There’s something about him that just makes Swiss people uncomfortable, not that we have any idea what….

Photo: Getty Images.

Layoffs Watch: Credit Suisse Prime Brokers

Turns out you don’t need them if you’re not offering prime brokerage services anymore.