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The PUK report on Credit Suisse highlights the failures of the "too big to fail" regime, revealing that despite existing laws, regulatory oversight was inadequate, allowing the bank to operate with insufficient capitalization. Political influence and lobbying led to detrimental regulatory decisions, exacerbating the crisis. The report underscores the need for a reevaluation of Switzerland's banking regulations to prevent future failures.
2025 is poised for volatility as a new U.S. President plans to raise tariffs, impacting market dynamics. Value stocks are expected to outperform growth stocks, while international stocks, particularly Canadian ones like The Toronto-Dominion Bank, are predicted to surpass U.S. stocks due to their lower valuations and higher dividend yields.
Isabelle Chassot, President of the PUK, led an extensive investigation into the downfall of Credit Suisse, highlighting the bank's mismanagement and lack of transparency. The PUK's report calls for stronger supervisory measures and accountability for banks, emphasizing the need for effective regulation to prevent future crises. Chassot expressed concern over the Federal Council's decision-making process during the crisis, noting a lack of thorough documentation and trust among members.
UBS shares fell 1.6% to CHF 26.46 in early trading, marking a decline from a 52-week high of CHF 29.57 reached on October 30, 2024. The company reported a profit of CHF 0.39 per share for the quarter ending September 30, 2024, despite a slight year-on-year revenue drop to CHF 18.86 billion. Analysts anticipate a dividend increase to USD 0.819 for 2024.
A report from Swiss MPs attributes the collapse of Credit Suisse to "years of mismanagement," highlighting a bank run that saw both wealthy clients and ordinary customers withdraw funds. The bank, which had over 50,000 employees globally, was ultimately rescued by UBS with support from the Swiss government. While the report criticized regulators and the government, it placed the primary blame on the bank's management.
The PUK report on Credit Suisse's downfall has sparked a political debate in Switzerland over the need for stricter banking regulations versus reliance on responsible management. While left-wing parties advocate for tighter rules, particularly regarding UBS's influence in politics, right-wing factions blame regulatory failures on FINMA. The Federal Council is expected to propose new legislation incorporating the report's findings.
The Parliamentary Commission of Inquiry into the Credit Suisse crisis concluded that the situation was self-inflicted, while acknowledging that a global financial crisis was averted in 2023. Finance Minister Karin Keller-Sutter supports the PUK's recommendations for improved banking regulation but rejects calls to restrict capital and liquidity requirements. Political parties are divided on how to address the supervisory authority Finma, with some advocating for its strengthening and others calling for accountability for its past actions.
Groupe BPCE has received regulatory approval for its cryptocurrency subsidiary, Hexarq, allowing it to offer crypto services to its 35 million customers starting in 2025. This PSAN registration enables services like custody and trading of digital assets under French law, marking a cautious yet strategic entry into the crypto market.While Hexarq focuses on retail services, BPCE's investment banking division, Natixis, is advancing blockchain initiatives, including a €100 million bond issuance. The bank emphasizes that the 2025 launch is contingent on ongoing risk assessments.
Nike, Inc. focuses on designing, manufacturing, and marketing sports footwear, clothing, and equipment, with footwear accounting for 68.6% of net sales. The company operates 1,045 stores globally and generates significant revenue from North America (41.6%) and Europe/Middle East/Africa (26.5%). Despite its strong market presence, UBS warns of potential downside risks in the coming quarters.
Nike, Inc. focuses on designing, manufacturing, and marketing sports footwear, clothing, and equipment, with footwear accounting for 68.6% of net sales. The company operates 1,045 stores globally and generates significant revenue from North America (41.6%) and Europe/Middle East/Africa (26.5%). Despite its strong market presence, UBS warns of potential downside risks in the coming quarters.
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