35 Burst results for "Credit Suisse"
Rob Maurer Of Tesla Daily And David Trainer Of New Constructs
"Everybody, Rob Power here. Today we have the good fortune to be joined by David trainer of New Constructs David. Put out a note last week with his team on Tesla that was relatively bearish. So I thought it would be a good opportunity to have somebody on the podcast. Maybe give a different perspective than what is sort give day to day and hopefully. We can both learn a little bit throughout the course of the conversation So David a former analyst with credit. Suisse. And then for the last couple decades, he is the founder and CEO of new contracts on investment research firm so David Nathan, you want to add to that in terms of your workings INS specifically this note on Tesla. Yes sure. No. We we're an independent research firm. So we don't doing any investment banking or trading There was a time when I ran a hedge fund will be don't do that anymore. So there's there's no short position in Tesla and honestly there's there's no axe to grind here. I'm flattered to to you on the show and I'm also a big fan of cars and I think beautiful. And I think would Elon Musk has been. Has Been Great for our world. I. Think he was really a tipping point in enforcing the big autos to to move more toward electric vehicles. What let's face it. You know one has to question why they never really wanted to do it on their own how they needed external government pressure to to increase gasoline efficiency. When that at the end of the day, we just lowered the cost of ownership for their product, which is a good thing but yet they didn't do it want us to wonder why that is. So I think he lawn. With respect to Tesla Electric Vehicles and our environment has done the world huge service. Insides one lead that fan I think the cars are beautiful. I wish I had one of my kids always rave about how much how awesome they are when they ride in one of their friends parents Tesla's it's funny in in. So I think there's a lot of good that has come out of what you musk is done at this space as well as other spaces. And the beautiful green cards. So you guys are kind of approaching it from a just an overvalued perspective on the company right now. Yeah. It's it's really kind of an old school throwback to the fiduciary in investor as opposed to the speculator the trader. Look there's no doubt you know as Jim, Cramer said he he's a fan test left for the last eighteen hundred points right? I mean look the momentum. The trading aspect here's Banal and it's been a huge wealth creator. An Art perspective is very narrowly focused on the fiduciary and decide the of risk. In, a market that's been such a strong performer. Since the The deer in in March you know, I think some people we got some feedback that people were kind of looking at how to manage whether or not we're at the top or or not in this market and we thought you know look. The first thing you do is identify where there's the most risk in your portfolio. So we kind of went through we cover around three thousand stocks as well as ETF's mutual funds and we looked for like, okay where's this? Where's the where's the risk extreme and then you know especially with Tesla, you gotta take into account all these sort of the optionality, all these great things that that Tesla might do. To, justify the future cashflows embedded in the stock price. And we went through the checklist and we thought, okay, we think there's a fair case to be made here for those with fiduciary responsibilities and produce responsibilities. To Take into account. Or. Consider. The risk in the stock relative to fundamentals. Sure. I know that that's a big part of your note later on. So definitely get through to some the valuation stuff So I thought probably the best way to kind of just kind of structure. This was to go point by point. I've had a lot of listeners that have read your note and have sort of asked me to give my my thoughts on it. So I thought you know what better way to do that than have the man himself here to discuss with me so Sweet. So you've got a lot of I mean this is probably a few thousand word article here. So let's just start right at the top. So you start off by saying. Really comparing the devaluation of tesla per car sold versus other automakers. I wanted to just sort of get your thoughts on this because I think you know this perspective or this this particular metric in isolation to me isn't all that particularly meaningful us are wanted to you just sort of get your take on why Joseph Start off with this and then get sort of my thoughts as well. Yeah, we're just sort of a level center to get a sense of how rich the expectations are and in just to give some perspective our approach valuation is is as I say, tomato analysts. Would you rather be a fortune teller or critic before to tell her and we see Mr Market or the stock market is a fortune teller. Here, she is giving us a price every day, and what we do new constructs is reverse engineer what the future cash flows, the revenue, the margins, the capital efficiency, the business, all that we reverse engineer with those need to be to justify the price and so. What we like to do is kind of begin be objective perspective on evaluation is and that's what we see in this chart like there's a big disconnect. It's not to say that Tesla can't achieve these expectations but for right now, there's a lot of credit given to what the company will do in
Are airlines clear for takeoff?
"Also got some encouraging new numbers from the TSA the agency, screening more than half a million passengers for the first since the coronavirus pandemic hits and Credit Suisse issuing some calls on the space southwest, the big winner getting upgrade as analysts believe the airline is well positioned for a comeback, but the firm downgrading united and spirit so are the airlines clear for takeoff Jeff Mills Holy. Cow United Airlines up twenty percent today. It's interesting, and I just WanNa make the first point which I think is critical at these levels and in this market when you're buying into the airlines, you have to understand what you're doing. What you're doing is buying into a Beta trade, which is completely linked to the reopening so this afternoon. Just for fun. I looked at American Airlines Delta MGM. Casinos, a couple of the cruise lines, and I looked at the correlations. If you go back to twenty, nine thousand nine as an example, then you average. Average out the correlations. If you just do a little matrix, it was point four three, so not that high from the bottom. Those stocks have been correlated an average of point nine six. You're basically looking at the same chart so when you're buying into an airline I don't know that it's anything idiosyncratic relative to the fundamental, so I want to make that point very clear upfront I've been cautious as it relates to the airlines. I think there are some risks as we move into the fourth quarter. Is Business travel going to come back. Are we going to get a second wave of the virus? I think there's this pent up demand right now, so you're seeing traveler throughput increase, but those TSA numbers we above five hundred thousand for the first time we were at about one hundred thousand per day at the depths of the the economic shutdown. Let's not. Not Forget I mean that's good, but this same day in two thousand, nine, thousand nine. That number was two point six million. We have a lot of ground to cover in terms of getting to where we need to be from demand standpoint. Last thing I will say just in terms of picking names within the space I. Think you WanNa. Look at A. A few things you WANNA look at exposure to business travel you WANNA look evaluation. I, also think you WANNA look at exposure to international travel, because that demand hasn't clearly come back yet. The name I think that might be best positioned for all of that is actually south west in terms of their revenue mix exposure to international travel, and their evaluations actually look a lot better. Some of the names like American spirit jet blue. If you look at them from an IT perspective, even that these depressed price levels given the debt that they've added during the last couple of months, evaluations actually don't look that attractive so in a space I don't like much. I think South West might be the name. Michael What do you make that? Wyndham CEO was Unin closing bell, last. Hourani, said leisure travels picking up, and he seemed bookings increase for eight straight weeks, but jeff makes a good point about the business travel. What do you? What do you think that all adds up for for the airlines? Some opportunity here? Stay away no way yet. Well. I, think it certainly depends. Name by name is picking up off such a low level that you know. Those types of increases in percentage terms are going to see material, but that doesn't necessarily mean that certain players in the space are going to be in good shape, taking a look at American for example. You know this is a company where you're looking. Looking at relatively short data debt that's trading at just over fifty cents on the dollar. And what that tells you is that the bondholders still have significant concerns. The reason the equity does so well is because it is coming off such a low level. It's a speculative by as Jeff was just alluding to on a reopening, but that doesn't necessarily mean that in. In the long term, these companies are going to end up being successful. You know if you're looking at companies that have accumulated a massive amount of debt than the enterprise values was talking about might actually be very little change, you know. It was just over forty billion dollars at the end of twenty, nine, thousand nineteen for American. Airlines around thirty eight billion dollars. Dollars now it's just the equity component that's down, but debt has been added of those big carriers. Maybe Delta Airlines is probably the highest quality, but you're really playing with in a very dangerous space when you're dealing with levered businesses that are so closely tied to a recovery and needing that second wave is going to hit them very hard if it comes. So, what do you think PK? You WanNa play a dangerous game. WanNa wait into the airline's. Name more like Boeing you walking away. No, no I want you know it's going to be hands off for me I. Mean Really What you've got here. Yeah, was the retreat here certainly but any asset that's up twenty percent I don't care if it's an airline Boeing or bitcoin up. Twenty percent takes off the table. People I mean take a little bit of profit. Wait for another day in the long run. I, do think these are challenged. All right so you are sending those warning signs
German government to bail Lufthansa out of bankruptcy
"Air France a bit of a conditional type of of bailout happening there And then a lot of discussions and of course. This has been going on for for a while. Would we see Berlin looking at some type of loan scheme investment in Lufthansa? A LOT OF PEOPLE. Also saying yeah. Governments have no part of this But of course it seems like something is going to go ahead. what What do we know yet could often intimate afternoon indeed? Yeah Lifthansa. They've they've got there. They've got their annual shareholder meeting today. And of course I mean it's it's an AGM in a shareholder meeting without shareholders. Because you know everyone has to watch it removes Anyway Long Story. Short like other airlines. Lufthansa is also fighting for its survival. government bailout looks. Uh looks likely well. It looks absolutely necessary to be honest. the figure we've hurt is around ten billion euros and of course the The controversial story is that how big will the government influence be once they've provided the ten billion and you know if Lift chief executive officer. Cast boy has any say. I mean he doesn't want an easy to government people on his supervisory board and tell him how to run an airline and I think history's poorly shown that Governments aren't good owners of many assets airlines in particular. So so he. As far as we know he doesn't want the government in there but of course he needs the money so this is kind of this kind of the the question. That's that's being discussed in Berlin as we speak. How much government influence You know will will lift and up with overall. I mean the The the shares have had a pretty disastrous year. Obviously they've Haft lift has has said it will cut the number of aircraft operates permanently They've they've closed a few weeks ago. They've closed their discount Germanwings As a as a first step to to cut back on expenses so at the moment the company is burning through eight hundred million euros a month I think got fourbillion liquidity. Right now You do the math. It's it's it's not a unique situation but maybe just before we get to unique situations. Do we have any indication as to how much going to be Loans and then securities in? Are we looking at? The German state would actually go in and end up with fifteen percent right away or does that come as a second stage potentially I think I think it's really still still up in the. I mean as an example. You look at Suisse the Swiss army of of Lufthansa. They fully They got their money and the Swiss government Hey decided rather than to take a direct stake in the company which is giving medicine hundred percent owned by. Lufthansa would be difficult to pull off. Anyway Dave basically provided credit guarantees so Swiss will receive money from the banks from UBS in Credit Suisse and the government will provide guarantees to the tune of one point three billion francs
Equity sell-off continues amid global contagion fear
"Patrick Palfrey joins us now senior equity strategist at Credit Suisse thanks for being with us this morning Patrick as we continue to watch this massive sell off in equity markets around the world what most has your eye this morning what I think right now what our focus is on is really two things is number one what is the spread of the coronavirus outside of China I think that's really where we are seeing a lot of attention historically the it was believed to be that the pace of growth in China has been contained but you see places like Italy and South Korea and see a pickup in cases is somewhat concerning and something that we're keeping an eye on in the second thing is really the collapse in interest rates the ten year now as of Friday was down around one point four five eight indicating lower again I think that is an area where investors need to pay attention as we're seeing the yield curve begins to infer it across much of the belly of the curve and what that does is incrementally makes financial conditions higher let's get to both of your points first off the sell off in Italy we are seeing broad selling their with the footsie midnight down about four and a third percent what is the concern in Italy is there a risk that cut the sell off like this could have a a spill over effect throughout Europe I mean it certainly I I think as we previously believed that that the virus was I would say well contained I think you eat it because this question whether or not it is and to what extent we have the ability to curtail it spread so I think that's really the key concern so in terms of elsewhere in the region I would expect equity indices around not only here but across around the world to be falling off in in sympathy with Italy earning this morning that the Italian government is considering emergency measures including a suspension of local tax payments as well as other of fiscal stimulus measures is there more that could be done to to give us some sort of left to markets in Italy well I I think it would you know I I like to divide the issues into something that's transitory something that's permanent if it's a transitory transaction then it's something that we will likely pick back up service at a factory buying a piece of equipment the need for that piece of equipment will likely just be purchased either a month or a quarter down the road in the areas where you have a permanent office in that case to a restaurant or store where that is just going to be a lost sale I think that's somewhat more problematic so I think the the loss of the permanence of some of these type of sales is is definitely tough but it's really how much of its transitory how much of it can we get back once the concerns that dissipate when you mentioned treasury yields heading toward inversion and we're very closely watching the thirty year yield this morning it's close to a record low right now one point eight four percent this raising your concern about recession in the U. S. so what's interesting is that we had a similar set of conditions last year we had an inversion across much of the yield curve but yet we still did pretty well and I think what you have been injured it's an interesting dynamic it's not necessarily recessionary signal you know there are certain dynamics around the world global overseas every trick yield which is pressuring the long end of the curve but what it does do is it does curtail risk taking amongst investors many investors accused the shape of the curve as a manager for how much leverage they use and and and and how much risk they're willing to employ so with the inversion is certainly problematic from a risk taking perspective and less so from its recessionary signal perspective is about a last minute here as we see this risk off sentiment pervading markets this morning what are you going to be looking for further in terms of equity markets so I I think we should be the Kerr fighting in some of the concerns around the world what we are looking for really is for that won't fall tree which had been working for the past several months to really resume working and for that secular growth trade also began what's going to under perform in this environment on a relative basis is going to be that that value trade which many investors had hoped would pick up as we had moved from September so focused on those stocks in the local and the secular growth trait thanks again Patrick good as always speaking with you that's Patrick Palfrey senior equity strategist at
Credit Suisse chairman expects to see out term after spy scandal
"Credit Suisse is chief executive has resigned amid a power struggle which followed a spying scandal of the bank Jonty on this something of a star in the financial world he was born in Ivory Coast and spent part of his career in government there but his international fame came from European finance culminating in his appointment as chief executive of Credit Suisse but he found out body with one senior colleague who is also a neighbor on the shore of lake Zurich the colleague was followed by private detectives Mr Tian says he did not know about it he was seen as a scandal that shook the rather conservative world of Swiss
Credit Suisse CEO Thiam to step down amid spying scandal
"The chief executive of crazy suis has resigned after a scandal in which the bank was found to have spied on a former colleague to John TM said he was completely unaware of the surveillance operation this report from dashi need David Mr times achievements in stabilizing credit Suisse's finances have been overshadowed by the scandal involving one of his former allies ball con the banking world was rocked by revelations that Mister Khan was chased through the streets of xeric by detectives when he defected to arrival U. B. S. Mr time was cleared of involvement boss a showdown with the board and suit one Mr time denies any wrongdoing the chairman as rona secured his
Credit Suisse CEO Thiam toppled by espionage scandal
"The chief executive of a very big Swiss bank Credit Suisse has resigned after a scandal in which the banks spied on a former colleague to John tie am it said he was unaware of the surveillance operation but he acknowledged that the affair had caused anxiety and said it should never have happened the BBC's starshine you David reports Mr times achievements in stabilizing credit Suisse's finances have been overshadowed by the scandal involving one of his former allies ball con the banking world was rocked by revelations that Mister Khan the head of the wealth management division was chased through the streets of xeric by detectives when he defected to arrival U. B. S. Mr time was cleared of involvement boss of the accusations multiplied a showdown with the board and suit one Mr time denies any wrongdoing the chairman has run a secured his departure the bank's largest shareholders high school teams a time to be retained now they have to be persuaded that his successor can continue to restore the bank's
Have Apple shares gotten too far ahead of themselves?
"Credit Suisse analyst. Matthew abroal seems to think that apple shares up gone too far ahead of themselves Philip. Elmer dewitt ran part of Kabul's latest note on his apple. Three Dot O.. Blog in it he seems to express a desire for growth guarantee. He's glad about iphone eleven even sales though he thinks investor attention is turning the iphone five G. expected in the second half of this year according his note we see five Obgyn helping drive a return to modest iphone revenue growth in calendar year twenty twenty albeit against much easier year over year comparisons however however we expect us to reflect mores slowing and the extension of replacement rates rather than a snap back to calendar year twenty seventeen twenty eighteen levels given limited initial five G. coverage and capacity and the lack of a killer APP at launch. So if I'm reading that right he things things I've owned. Revenue will go up thanks to the higher price of five g phones but unit sales will go down while people wait for five G. to actually get to them and actually do
Switzerland's Credit Suisse confirms snooping on 2nd manager
"A lot of interesting movement out there lot of interesting stories floating around not least this line from Credit Suisse about putting the blame on for these small eating Noel surveillance for the pending on how you see it and apparently around the pool blonde lady following someone around a couple of years ago that's not coming as the flood scamp yeah and seeds this from credit three so we watching that a store at the European market
Credit Suisse admits surveillance of second executive
"Well at least or this my love the picture a man in a cage with a Hanson sleepy eyes in a sense I suppose that this is a spot in the tool to the was spying because it's centering around the second spying scandal concerning credits we said just give us the details on that yeah it's it's kind of an extraordinary story so of course Credit Suisse have diff the first scandal that all the surveillance of the head of international wealth management Iqbal Khan before he left the bank and that was blamed on the former CEO and then today we expect the bank to publish its report on a second scandal which involves monitoring of the X. H. R. T. and yet even as this happens now over the weekend we have allegations of yet a third spy scandal former executive Colleen Graham says she was followed around Manhattan two years ago by a striking tall blonde so it's it's five verses if three spying events as as as of today yeah I did other things that's why they'll be so much focus on this because of the way he was and I live two cents yeah you to take the blame those spots ability for the first incident let's see what happens with the
Swiss franc soars, stocks tank as euro peg scrapped
"What are we expecting to hear from Credit Suisse today we are as you said what we expect from our reporting is that they will follow the comicon playbook and say that if this is all under the C. O. O. P. only the movie and he's gonna already so move along no problem to see hit buds I mean I think it does so to speak to to something going wrong here because the bank is said that spying is not part of the two books that the quote from from will who know the chairman TM the CEO himself he said that through through the isolated incident was a con buying so it's no I'm in Red Sea seen a guy like the the the head of acceptability of human resources is having spied on the thumb is going wrong I I the the the the bank that is the fat man willingly or telling a lie or they do they know it's a something's wrong in the process is there and the Swiss regulate the film I look to take a closer look at this so I mean it's not just a question of saying this is in the pasta with this is a a at an executive single executive who handle this they really need to spell out how that process is a working how the compliance like how the government is working to win back some conference with some because of the biggest
Google says quantum computer completed 10,000-year task in 200 seconds
"Right Rebecca Google says it's got bragging rights when it comes to computing power announced a breakthrough in quantum computing research developing a new fifty four Q. bit processor that performed a computation and two hundred seconds something that would take the world's reigning fastest supercomputer ten thousand years to produce a similar output Credit Suisse meanwhile is raising the stock price target for Google parent alphabet by two hundred dollars to seventeen hundred dollars ahead of its third quarter earnings report next week on the belief that search and you two are enjoying strong
Apple's iPhone launch puts stock in play amid US-China 'high stakes tariff poker game'
"Credit Suisse as a neutral rating for apple stock and a two hundred nine dollar price target well below today's opening price which was an all time high for apple apple shares moved slightly lower today overall the stock market was down on some concerns over the partial trade deal announced with China Bloomberg says that China still has some details of wants to hammer out before she Jean paying signs that
"credit suisse" Discussed on FT Banking Weekly
"US banking editor and Jenkins our financial editor our guest this week week is Jean Pierre and the the president of the European Banking Federation and the CEO of Unicredit this week will be discussing the burgeoning corporate espionage scandal at Credit Suisse which has gripped the Swiss financial capital the appointment of a new chief executive of Wells Fargo in the US and the merits of the European central banks negative interest rate policy. I up a developing story on corporate spying scandal that could easily serve as the plot I through the novel Credit Suisse which ordered the surveillance of an outgoing executive has tried to draw a line under the events by announcing the resignation of its chief operating officer but about to the story has taken a darker turn after emerged that a security contractor at the heart of the affair has taken their own life joining me down the line from Zurich to discuss the story obvious Sam Jones are Switzerland and Austria correspondent Sam. What's the latest well as you said David. We heard this morning that the contractor at that Credit Suisse had used as an intermediary to arrange this surveillance or one of their employees had actually tragically killed himself last week news of that. Ah emerged late last night and has subsequently been covered this morning in the Swiss press and we had confirmation of it from the Zurich Prosecutor's office. That's the Federal Authority that's responsible for overseeing criminal cases in the Canton and they confirm this morning that they were treating it as a suicide but that investigations nations were ongoing into the exact circumstances of his death the timing of it and of course the connections this man had with executives executives at Credit Suisse and whether they I suppose played any role in the circumstances that led to his taking his life now of course this development complicates indicates Credit Suisse's attempts to shut down the scandal by securing the resignation of its chief operating officer but tell us what efforts the bank has tried to take to put this behind it well it sort of being a series of steps that they've been taking over last week and each one has clearly been somewhat inadequate the I was in response to the initial revelations about surveillance on Mr Khan when it turned out three men have been arrested because of some kind of incident in Zurich and the banks then questioned the account that had been given by people close to Mr Kearney's to what had gone on Aulnay sous disputed the notion altercation or anything like that and that seemed to put rest to some of the stuff and then we have this batch of revelations about about the scale of the animosity between Mr Khan he's the departed wealth management chief of Credit Suisse and the chief executive of Credit Suisse teach and and all of the arguments between the two of them that had been festering for so long and came to a head earlier this year leading to Mr Khan's departure and now of of course over the weekend we had this report being delivered to the board by its third party law firm that been hard to investigate the circumstances of this spying and I think the bank very much hope this would end it and shareholders and come out in support of Mr Chairman also in support of other members of the executive board and now now this now it turns out that one of the central figures in this trauma is taking his life and one begins to wonder whether this is going to open up a whole new gotcha inquiry is about the extent of the knowledge of the spying scandal that existed at the very top of the Credit Suisse hierarchy and that's really the key question because people are beginning meaning to ask whether the chief operating officer who resigned today where the really the buck did stop with him or whether actually teaching tm might have been aware of some of these surveillance he of course has said absolutely not and the law firm this is also said they could find no evidence that he was involved Christians to for the chairman who approved this highly unusual arrangement which meant the Akbal Khan could leave Credit Suisse with virtually no notice his period and then of course the notice period and the gardening leave in place precisely to stop people doing what credits we suspected Mr Khan of doing which was is trying to poach clients and employees of Credit Suisse but tell us a little bit about this pretty lured background story the relationship between Mr Not M. Mr Kahn which includes as we understand it altercations cocktail parties arguments over trees on neighboring properties. How did things get so bad between clean them well. That's a very good question and so far one that no one seems to have an answer to other than as you say. This is such a bizarre. Ah Dispute that at one level is entirely petty and parochial. The pair of them were actually next door neighbors and had a series of falling outs over issues like trees in front of Windows and building works and things like that on another level. It's about two of the most powerful and influential people in Swiss finance if not in global finance and about their rivalry within Credit Suisse and I think the key to that is about this young man. I'm Nick Alcon who is forty three has been a rising star within the bank and have no compunction in saying to to jam. TM The chief executive. This is much older that he saw himself as a future. CEO and I think for Mr Tom. The question was just over when that future might be. I think Mr Mr. TM is being feeling a little bit under pressure of late as well because he's three years into a strategy to overhaul to restructure the whole of the bank and and although that has borne results in some of the numbers the hasn't been reflected in the share price and so there is a little bit of growing disquiet over whether that is working or oh not so there's this sort of conflict rivalry sort of sense of insecurity that was obviously going on a professional level and then led to this breakdown breakdown occurred. Was We understand it in January of this year. When there was a cocktail party at Thames House in a very chic area Zurich Zurich called hurly-burly on the Gold Coast of Lake Zurich and Mr Khan was there obviously alcohol being consumed and something happened between the two men the series row exactly over what we're not sure and they have to be separated and after that stopped speaking with each other and then it wasn't very many many months later that mister cartoon suddenly departed from the bank well a developing story and of course as we found out recently a very sad one indeed Sam I'm sure we'll be hearing more from you on this in the weeks to come. Thanks a lot next up a story stories from across the pond where Wells Fargo the US bank has announced Charles Schoff the current boss of Bank of New York Mellon as its new chief executive joining me to discuss thus the appointment is Lauren Noonan. US banking editor so Laura who is Charles Shaw and how have analysts and investors reacted to his appointment say Charlie Sheriff is a veteran of the US banking industry. He's worked in the industry for more than twenty years. His name will be well known to money listeners. He has obviously most recently been chief executive of Bank of New York Mellon he's let role for the last two years for four years prior to that he was chief executive of Visa and then before that he had a lengthy career at j.p Morgan and chase culminating in him heading. JP Morgan chases retail operation so he's a big name. He has a lot of Wall Street pedigree. He has a lot of experience reaction to his appointment and has been largely positive. Wells Fargo shares rose almost five percents the day it was an Einstein and investors and analysts have certainly praised breath of his experience and from save perspective. There really isn't any better that they could offend for the job. The one thing people have criticized a bed and we'll come back to this more detail. Later is the fact that Charlie Shar plans continue to be based in New York while Wells Fargo is of course headquartered in San Francisco which is a five hour flight away on a three hour time difference so that is the one thing that has drawn a little bit of criticism but overall. I think people are very happy with the appointments. Wells Fargo has been without a CEO for six months now after the previous boss resigned reminders of the events events the lead up to his exit so the events that led to the departure of Tim Sloan as Wells Fargo chief executive have actually been placed in zone was appointed should the wells job back in two thousand sixteen at that time. Wells Fargo had just been found with the center of a fake account scandal that really humbled bank and really rock the buying to its core the previous v CEO Johnstone for defectively because of US Tim Sloan was put into replacement effectively stabilize the buying and clean things up. Unfortunately things didn't quite go according to plan so we had the big initial scandal than we had a series of smaller scandals and while really struggle to put them selling scandal and the fake take account scandal behind us at the same time. Tim Sloan was under a lot of political pressure from quarters like Elizabeth Warren who were basically saying that he was too much of a company demand to really clean up the company so Tim Sloan decided by six months ago that the buying poopie better off without him so tim at that point announced his plans to retire and then the hunt began in earnest for permanent chief executive well that sounds like a lot to do and Mr Sheriff's Intri what you think he will focus on in his first year so yeah. There's certainly a lot for charity his hand and I mean the main focus for him will be similar to the main focus for Tim and that will really be ice trying to deal with the registry situation. Wells is frogger still operating under an asset calf that means that accounts increase its balance sheet on Telugu things under control and until it convinces reggae select Lhasa Apso thing that will be the big focus for Charlie in his early days. He may need to take some additional charges. We may see in his early innings a whack of additional charges just to put everything behind in not to have it follow the buying for so long. We may see some further management changes. We may see some changes to the bank's board. Just try to reinvigoration to really draw a line ascendancy agency right. This is the new wells fargo the search to find a permanent. CEO was long and tortured. What were the main barriers. I think six months is probably a long time look for a CEO especially when you are with Isis CEO. There were a number of obstacles to the search. I mean the problem is taking on a bank. That house is kind of major regulatory issues is is that you never really know how deep it goes and for an slider. That's is a particularly challenging thing because even if you weren't there when all these issues occurred to be constantly the uncovering them and constantly having to announce them. It's not a pleasant task and it can lead to just a very very long slog to turn the bank. The bank had from the outset. They wanted an outsider but trying to find an outsider who's willing to take it on with although the unknowns that is a very challenging thing to do the role also comes with a lot of public scrutiny so internationally the Wells Fargo. Isn't that big a deal but if you come to the US Wells Fargo is central to parts of the US. It is a core lender the core part of mainstream. It's a core part of local GLICO enemies on local communities so the politicians in the US really care who runs wells Fargo Anti Wells Fargo. Does that means that the person taking it on it's going to have oh very high public profile hair. which is something that not everybody wants? The final thing of course is that Wells Fargo is headquartered in San Francisco. Most of the senior bankers live here in New York and not everyone relax you relish move to the West Coast so that Lucy other issue that they had in trying to fill US understand that the arrangement has raised some eyebrows given in his previous stomps on homeworking. Tell us a little bit more about that. Charlie as some of you may remember when he was chief executive of visa. He ended up leaving because he found the commute between New York and San Francisco wasn't feasible. Charis family lives in New York. Charlie families still is in New York this room. Charlie isn't even going to try to commute..
Top Credit Suisse executive resigns after spying affair
"Morning we mentioned Credit Suisse the chief operating officer having resigned as the buying released the findings of its probe into the spying scandal now as he took responsibility for the surveillance all of the snow bank eight ball con that books the world of Swiss finance the bank this morning saying that there's no indication that the chief executive to chance you have approved the move Credit Suisse adding that the incident has because of a reputational damage a motor credit Suisse's chairman that we were listening to this one is just an hour ago saying that there is no cultural problem at the bank also note that the biggest investors a credit squeeze what backing of the existing management team they didn't want to see big changes our house that is an explanation of why the ship prices going up pleasing at least that one of the investors we
Credit Suisse executive quits over snooping on ex-manager
"And credit Suisse's chief operating officer has resigned that is the bank releases the findings of its probe into the spying scandal he took responsibility for the surveillance of the star bank eight ball con that rocked the world of Swiss finance the bank says there's no indication the chief executive John T. approve the move and Credit Suisse has been adding the the incident has caused severe reputational damage that line coming from a press conference held within the last hour in xeric of which they will say mentioned of course the survey I have an apology for Mr Iqbal Khan and his family and a few other lines coming out of that. suggesting the bank is very much a moment trying to draw a line in the whole
UAW auto workers on strike at GM
"The union's top negotiator says General Motors and the United auto workers remain far apart in their talks over a new contract the UAW is leaving its first strike against GM in twelve years Credit Suisse analyst says the strike could cost GM up to fifty million dollars a
US, China And John Woods discussed on Bloomberg Finance
"A former China central banker and others more into today of the risk of a currency war with the west the US is label China a currency manipulator chan you want China's former deputy governor of the people's bank of China says that signifies the trade war is evolving into a financial war and a currency war and that could mean a long term conflict John woods is chief investment officer at Credit Suisse Asia Pacific I think the markets essentially positioning itself now for the long game I think this dispute is going to continue I think is closely linked with the election cycle from the U. S. side and I've noticed now with that the November twenty twenty date seems to be quite the an important way point as far as the sun dispute is concerned which was interviewed on Bloomberg
Credit Suisse banks on wealth management growth as profit doubles
"And critics sweeps brushed off the gleaming European banker innings as wealthy clients added new money and revenue from securities trading that rose in a course in which he has posted declines results confirm residents in the bank's key business is following chief executive officer T. John T. M.'s three at turn around yeah healthy inflows of nine point five billion francs or nine point six billion dollars into wealth management and contrast they contrasted with outflows at rival UBS in the trading units fixed income revenue game six percent more than offsetting a one percent drop in equities and Credit Suisse shares up three point seven percent at the
"credit suisse" Discussed on FT Banking Weekly
"Think relate this case to the demonstration on the streets let me bring david infra final so i mean i think this is a litmus test of whether a company like hsbc headquarters in the uk founded in hong kong and generating seventy five percent sent off its profits in hong kong and china ineffectively bashing its future on expansion in mainland china and do so big you es solex hearing banke weather this kind of global by among those really built and the strategy sort of built around this idea of china opening up all have a great to globalization whether hates us bc converting navigate what are clearly very different times and although the protest in hong kong sort of you in any way linked to this particular case they do speak to the fact the hong kong is becoming china fight and beijing is assessing influence that territory and it puts a company like hsbc in a very tricky spot we will see see how they cope with it thank you david and james and apologies for the quality of hong kong phone line let's move onto our final story and a quick look at credit suisse as it goes to court to soothe e u k h h among see full pay taxes or taxes that it believes it shouldn't have had to pay this is a delicate area a cruise weeks or any bank or any company to go into battle over isn't it yeah credit suisse takes the tax man to court over anything just over bankers bonuses particularly by this and so these attacks is the credits we paid during the depths of the financial crisis when outlasted darling then late but sean slow introduce i suppose what amounts to almost an emergency full month tax on bankers bonuses ran from the end of two thousand nine through the first four months of two thousand and ten and this tax raised an awful lot of money they hadn't been intended to the idea idea was to stop the banks from paying bonuses the labor government more fed up with all these headlines about how fat cat city pay was continuing unabated and so on the building had hoped to the tax would change behavior it did not the banks pay the bonuses anyway and exchequer braised close to five billion pounds so what case this credit so we have given that they knew this tax laws in place they chose to pay the dinosaurs anyway how could they claim they were unfairly taxed so walk credit suisse is arguing is a little tough to follow but anyway that saying some banks had years when not calendar years banks like nura rothschild royal bank of canada did not have proper county cbs and say that full pay that bonuses outwith the fool months window when this tax laws levied on the credit suisse aki because those banks didn't have to pay this bonus tax day affectively received a version and all state aid which is in contravention of european union rules and it's a strange legal theory whether it succeeds will not be optics of this very strange this is two hundred fifty nine million pounds the credits we paid aid long ago and quite wyatt's willing to risk bad headlines to this now it's not quite clear to me and that kind of damned if they win damned if they don't if they win no is going to be mighty political backlash about how this money which was spent on public services and so on during the depths of the lost crisis is now being sort of cool back if they lose i think people are gonna ask why on us they wasted time money and sort of engaging repetition risk when they go the case it sounds like a lot of money two hundred fifty nine million pounds i suppose but in the scheme of things i'm not sure shelled is leaving leftist so suddenly the reputation of damages you say is probably the biggest risk.
"credit suisse" Discussed on FT Banking Weekly
"Upon hsbc and why while way chinese telecoms company blames it for lending in legal trouble and finally credit suisse and why it's taking you pay tax authorities who first i to that story about insider trading and this is a case caroline that's been bruce and one by these financial comfortable poetry against you bs member of staff and eight friend yeah that's right so that every child in fact of eight full menu bs compliance officer and had they traded friend ended last week the first child that was in late twenty eighteen resulted in a hung jury say everything speed we all keep in front of a new jersey beginning from east a time this yeah so the jury convicted sop you oughta matic used to walk you bs is compliance department and it will say why they shoot cat who was hud they traded friend then you each of the three mothers they came from london and they've base received a three a jail sentence say they allegations were basically soppy on a street a role cbs accessed price sensitive information on deals cbs is walking on at the time and then would cost them secret eat to when he she cat using phones with multiple sim cards that kind of thing and then shoot cat would trade successfully using contracts the difference on the traits ahead of any announcement tool newspaper articles something like that and ended up not seeing a one million pounds and profit wouldn't be interesting us but it doesn't really matter from my point interview but certainly from a personal point of view the one of the interesting wrinkle here seems to be that mr she can make all the money doesn't seem to have obviously shared it with his partner in crime yeah that's right the prosecution which misty financial conduct to or in this case never alleged that soppy on a made any money a tool from passing inside information she kinda what did happen with that she would take cut to trump which is this rob the infamous private and then this club in london where you see celebrities hanging out and that kind of thing and in sentencing judge joanna kona he presided over the trolls said tiff i'll be honest it is clear that you took every opportunity to enjoy entry into the robber new lifestyle that was being led by shoot a but so i'll be on hardly ever drank say well these mac and some champagne chicago is buying she never republicans say the question does remain why exactly what she rescheduled her reputation and indeed has liberty just be taking the trump now and again absolutely i suppose the broader question is what is the signal in terms of insider trading casey's from what we hear regulators are pursuing this type of crime more seriously than ever does that mean we're gonna see a flood of cases coming from well mock students who will be talking to in this podcast who's the head of yesterday's enforcement division has long promised a crackdown on insider trading it was never something the cia or its predecessor asian cd financial services already had ever prosecuted before two two thousand and eight and then since the financial crisis on the general demand full accountability in the city that
"credit suisse" Discussed on Bloomberg Radio New York
"She's an institutional investor hall of fame and her team has been ranked number one eleven separate times. So let's talk a little bit about the timing of the launch of zoom in an associate's. You do this was later. No seven is that right? We left Credit Suisse in may and started zome in October third thousand seven okay, so Tober v two thousand seven the third October two thousand seven is when the equity markets beats would not see that level again till twenty thirteen. So you're timing was kind of interesting. Incidental. You obviously saw some variation of what was coming. Why launch into that sort of mayhem or was the expectation? Hey, nobody's job is safe. We might as well. Do it ourselves or what were you thinking? Well, my team that Credit Suisse Dennis McGill who was my partner associate. And he's the co founder of Zalman associates along with Alan Ratner who was also working with us on the team at Credit Suisse, we were working as equity analyst really focused on housing, but we were servicing the entire firm because we were as such in the eye of the storm such a controversial call and I had such an unbelievable network that we created through these private industry contacts that we wanted. We weren't feeling that we were for all we were. Unfortunately, a lot of people internally within Salesforce and traders and in the in this occurs. -ation the APS. They didn't agree with our call. So we're a little bit. If somebody has to be on the road trade, right? Well, we were not very popular. And I was even told by the head of product management from credit Suisse's perspective that your job could be at risk if you don't make you know, you had your I think she thousand six this is what happened two thousand six stocks were down about forty percent. And there was slowing and we were right? And then Bob toll and toll brothers ate things are picking up. This is back in September six and they called the bottom. And and that you need to get with it. And you need to be more bullish. You had your little good time. Now. Now, you need to turn around and be bullish. And I remember publishing Denison. I we had fun writing this report in December two thousand six we wrote twelve reason or ten reasons to sell homebuilding socks. Wait. Let me let's just make sure the time and here you're negative on on home, builders and housing stocks. They fall. All forty percent over the next twenty four months is that fair July of oh five was when they we started really seeing inventory starting to let wealth months, let's say twelve months, so this is a fierce bear market. And it's only the beginning down forty percent and somebody not your direct boss. But somebody in the firm says all right? You've had a little fun. You've had a little pullback you better flipped bullish. And your contrarian responses bullish watch this, right? No hesitation, not wondering about, hey. These guys can get me fired. There was no thought about that. Well was there? Well this. This was the managing director running all of the morning, call product manager, and I was pretty pissed off. And actually went to my director of research and complained and actually the research director was very supportive of me. And so with that it was they were great to me. But this particular person, unfortunately, was was someone I was pretty upset with. But. Subsequent to that sort of they Zalman bottom, we publish something in October six called wonderland wonderland was basically saying that the homebuilding industry is going to have to write off equity because they've overpaid for so much land. We actually estimated about twenty percent equity right off how much was that in actual dollars millions of house and actually turned out to be fifty sixty percent that they wrote off. So we were way off, but we were so contrarian right at this time. So that was saying twenty percent right off. No. Yeah. No write ups or anything. So that was October six that was another sort of flagship report. But in December the stocks kept going up, so they're rallying in our face. We're getting a lot of backlash sales sources against us people internally were like what's the story? And then December we came out with the the ten reasons to sell homing socks, and.
"credit suisse" Discussed on Bloomberg Radio New York
"She's an institutional investor hall of fame and her team has been ranked number one eleven separate times. So let's talk a little bit about the timing of the launch of Zalman and associates, you do this was later. No seven is that right? We left Credit Suisse in may and started zome in October third two thousand seven okay. So Tober v two thousand seven October third. Oh, sorry, October fifth in two thousand seven is when the equity markets Pete's would not see that level again till twenty thirteen. So you're timing was kind of interesting in coin. Incidental. You obviously saw some variation of what was coming. Why launch into that sort of mayhem or was the expectation? Hey, nobody's job is safe. We might as well. Do it ourselves or what were you thinking? Well, my team that Credit Suisse Dennis McGill who was my partner associate. And he's the co founder of Zalman associates along with Alan Ratner who was also working with us on the team at Credit Suisse, we were working as equity analyst at really focus on housing, but we were servicing the entire firm because we were as such in the eye of the storm. We had such a controversial call and I had such an unbelievable network that we created through these private industry contacts that we wanted. We weren't feeling that we were first of all we were, unfortunately, a lot of people internally within the Salesforce and traders and the cures -ation the APS guys. They didn't agree with our call. So we're a little bit. Somebody has to be in the Royal trade. Right. Well, we were not very popular. And I was even told by the head of product management from credit Suisse's perspective that your job could be at risk if you don't make you know, you had your I think she thousand six this is what happened two thousand six stocks were down about forty percent. And there was a slowing and we were right? And then Bob toll toll brothers ate things are picking up. This is back in September six and they called the bottom, and that you need to get with it. And you need to be more bullish. You had your little good time. Now. Now, you need to turn around and be bullish. And I remember publishing Denison. I we had fun writing this report in December two thousand six we wrote twelve reason or ten reasons to sell homebuilding stocks. Wait, let me let's just make sure the timing here. You're negative on on home, builders and housing stocks. They fall forty percent over the next twenty four months is that fair. He was July of oh five was when they we started really seeing inventory starting to let twelve months, let's say twelve months, so this is a fierce bear market. And it's only the beginning down forty percent and somebody not your direct boss. But somebody in the firm says all right? You've had a little fun. You've had a little pullback you better flipped bullish. And your contrarian responses bullish watch this no hesitation, not wondering about, hey. These guys can get me fired. There was no thought about that. What was their well this? This was a managing director running all of the morning, call product manager, and I was pretty pissed off. And actually went to my director of research and complained and actually the research director was very supportive of me. And so with that it was they were great to me. But this particular person, unfortunately, it was someone I was pretty upset with but subsequent to that sort of they could Zalman bottom. We. Publish something in October six called wonderland and wonderland was basically saying that the homebuilding industry is going to have to write off equity because they've overpaid for so much land. We actually estimated about a twenty percent equity right off how much was that an actual dollars. Millions of it actually turned out to be fifty sixty percent that they wrote off. So we were way off, but we were so contrarian at this time. So that was saying twenty percent right off. No. Yeah. No right of surroundings. So that was Tober six that was another sort of flagship report. But in December the stocks kept going up, so they're rallying in our face. Getting a lot of backlash Salesforce was against us people internally were like what story and then December we came out with the ten reasons to sell homebuilding socks, and it was a few reasons out of the tent the town was they were, you know, basically, the the mortgage market was not sustainable, the fuelling of the growth was coming from, you know, these ridiculous exotic mortgage products, you had land prices were going to crash we had consumers that were not buying because the investors were buying. I'd have to go back and look at all the specifics, but any any big clients say I don't care about that. This is contrary and I'm going to do this and put giant bets to work. Sure. John Paulson was one of our clients that we talked to regularly. Steve is men was one of my buddies. They probably spoke with him daily along with his team, Danny Moses and Vinnie Daniels. Those guys were every day we were on the phone with them. There were some people that were really convinced as we were that this bearish call. What would some point was going to work coming up? We continue our conversation with ivy's Elman discussing where.
"credit suisse" Discussed on Chat With Traders
"Yeah. Why why the are funds or I guess participants running these types of Al what are their objectives? What did I try to? I think that they are filling customer orders. But I'm not sure why they're doing that. But what I think is somebody calls up. You know, who whatever Credit Suisse says, hey, man, by me, like two million shares of the stock, and they're just like putting it in the I'll go in the AGA just execute throughout like, you know, a period of two weeks or something like that. So they don't really care if it's on the bidder on the offer they just like trying to accumulate a position. You said before that often if you filled on the offer CNN short, you would try and cover into the mid point. Can you just explain what do you mean? By the mid point the mid point is is is the midpoint between the bid and the offer. So you can actually peg your orders to the mid point and look for liquidity there because there's liquid there like you don't see it. But there's the they're like I can add liquidity to the mid points on see if if there is liquidity on the other side. So I can short the bid I can short the offer an cover in between the bid on the offer a KYW end to do that unites brat. Your order to eye doc, doctor or can you do that on something like alka? Yeah. You can do it on Arca chances. Are you won't get a fill in Arca? It's pretty expensive. If you do it on Biggs B Y X, you can pay a little bit. And that's usually one of the first ones to get filled. So I I wrote through some Biggs to the midpoint. Pretty often says that normally what you would try to is get a failed at the mid point not trying to catch the full spread see wouldn't even try and then Q on the bid. No, I would try to I get the bid. But if I can't get the bid limit the mid him. I and how profitable was this top trading full. You goes it was very profitable. I mean, nobody nobody really traded anything else. It was just galloping every day all day like people made a lot of money, but you know, over time that. It kind of went away because we were kind of at the mercy of that Algo like the position sizing, you know, how much money we're making was it depended on those algorithms, right? So we have basically a Kita pie. And we're dividing it among like twenty traders. Right. The more traders learn the strategy like the smaller the the slices right in with time. Those out goes got smarter. So the pie got smaller next thing. You know, we're eating crumbs. So. Say opportunity to do this in. So some of the less liquid stocks like shitty. Little penny. Stocks No, had it all. not at all. I think in shitty little penny. Stocks first of all they're very volatile. They're not really going sideways and second of all it's mostly retail..
"credit suisse" Discussed on FT Banking Weekly
"There's also been in recent months and probably going back beyond that a lot of speculation about how long Mr Monti's gonna stay in his job for the first several years of his tenure he delivered probably above. Expectations and UBS was the darling of European banking for a good while is this light to sav- results. Going to pile pressure on him either to move to come up with a you kind of strategic plan when he did talk about fuel-saving measures today, which seemed to be cost cutting related to hiring fewest off do they IT infrastructure projects. But it didn't seem like he was worried about the overall direction of his strategy with regards to whether he stays on a CEO is succession. He's restricted bizarre stain role for two or more years and dismissed a low the media reports we've been seeing about who's going to succeed him either internal candidates or external people just the former have Bank of America's best Christian Meisner. So it's a bit opaque. What's going on UBS at the moment? The shares without twenty nine percent last year the down another four point four percent today. So he's going to be feeling a little bit of the pressure from his investors. But there's no sense if they're going to have to go back to the drawing board on what they're trying to do overall. Which is of course, the. Deemphasize the investment Bank and make themselves into the world's largest wealth manager, predominantly focused on growth out in Asia. And of course, the sets the scene for pretty weak set of results from other big European banks. Not least this wis rivals Credit Suisse, but also Deutsche Barclays and so exactly Credit Suisse report until the fourteenth of February. So we've got a bit of space before we see those, but there's more turmoil going on over there. They start their restructuring shrinking their investment Bank, a lot later particular interest in the coming weeks was the Janu Barclays, which is of course, embroiled in a increasingly denser dispute with an activist investor over whether they should be sending bolt and sales and trading in the investment Bank Barclays results as pool as newbie as well today, then missed a Branson, the activist is going to have a little bit more active chew on. Absolutely. We'll we'll keep everyone posted on that. Thanks in the meantime for joining us. Well, next, let's go for a special preview of devils. This year getting underway on Tuesday, and some of the early sessions have been particularly interesting from a Bank perspective, a rush masugi. October finance editor has been talking to David Crowe banking editor at bat..
"credit suisse" Discussed on FT Banking Weekly
"From the financial times with me patra Jenkins. Joining me in the studio today are Stephen Morris? Our European banking correspondent and Stefania Pomme side stage correspondent joins us from New York, by Skype is Laura Newnan arduous banking editor this week. We'll be looking at Goldman Sachs's problems in Malaysia an interesting story about Credit Suisse urging customers to move money out of the UK and finally review of European banks in twenty team I though to Goldman, and I'm delighted that Stefania who's normally resident in Singapore is actually here with us in the studio. It's being another pretty bad twenty four hours for Goldman Sachs. They've finally now got the criminal charges filed against them in Malaysia. What does this mean for them? This is basically the biggest concrete action, that's Malaysia has finally issued against Goldman sin. Elections in may add there's been a massive build-up in terms of rhetoric in terms of very senior politicians demanding that Goldman returns some of the fees and some of the money thoughts when I'm to be paid them to arrange bones for the state investment fund. But this is really big news in Malaysia, it seems as if Malaysia kind of piggybacking on the charges were announced by the DOJ just recently. In fact, it's targeting and saying, but some Goldman Sachs units as well. As some of former bankers there, including two Meissner Roger were issuing false statements to misappropriate two point seven billion dollars from the bonds that were issued and these were than used to bribe some Malaysian officials, and this is exactly what's the DOJ. Also stated I guess. The main difference is thoughts Malaysia is also charging three Goldman socks units themselves in their own case. Now, Stephanie a reminders how long this dates back and also what repercussions? Slightly to have. So the one MD be soon investment fund was set up by former prime Minister Najib result in two thousand nine it was just through four years laser thoughts. There were some indications that probably some fraud. Some battlements was linked to one MD be everything sort of came crumbling down when nudged was ousted in elections this year in may, and that really was the big cost for the opposition to really kick off a very very fierce investigation. Both in the former prime minister and his dealings with one MD. But also in terms of the network that was created to allegedly embezzle something like four and a half billion dollars from the investment fund. But relieved the change in government in Malaysia was up crucial because prosecutors in other jurisdictions that are investigating this mouser because it Oviously pas international reach were really struggling to dig deeper into the affair because Malaysia was not cooperating. But now that obviously a position is now in power, really, it's a free for all investigations, or deepening and the ramifications of the Malaysia pretty profound, but does this concrete. We mean, Goldman criminal charges filed against them could be frozen out of business both in Malaysia and in of a pulse of that region in Malaysia the already slim down considerably their presence. They still technically have an office there, but sort of the investment banking end of it is virtually non-existent if anything it's mostly sort of with management, private banking in Malaysia every sort of banker or lawyer that I speak to say that essentially as of now, it would be very very hard for Oldman to do any business specially with the government, especially with any government linked companies. Those tend to be the biggest clients that you can have in Malaysia in terms of the rest of Asia, the grown considerably in places like China, and you know, number of analysts and even competitors say that it probably won't comp-. -pletely dense their rise in that part of the world. But it remains to be seen. What happens if and went the units thought were charged by the Malaysian government just yesterday, if they find these golden sex units guilty will jurisdictions where these units are incorporates than fuel obliged to act based upon the result of this case in Malaysia. That's the big question. Let's cross overnight Laura in New York for US perspective on this as defined you mentioned there, Laura to an extent the Malaysian authorities of piggybacking off the US department of Justice case, tell us how that will fit together. And what the impact on Goldman is being in the US. Yes, it is a case at the US DJ's been building now for several years on.
"credit suisse" Discussed on FT Banking Weekly
"Regulatory front and also it can help invest in its businesses. It continues to shift into a huge global wealth manager from its previous incarnation. As a large investment Bank is interesting. Isn't it how banks which are now? Now, generally, they've reached their regulatory capital levels. They're stunned to accumulate capital. What do they do with it? You've been writing David Bob Standard Chartered thinking about share buybacks as well. And I'm sure we're gonna see more of this as time goes on. But balancing that first from investor's for capital to be bought back and also balance that against the growth story of the growth potential that banks can go for Lillian SWISS's case, they've got a big Asian strategy, which presumably could suck up all of this capital. If they want to invest it that exactly I mean, we're seeing a big trend from banks of out there raising capital as he said, like Standard Chartered and credits east. Now looking returning some of this back. I think part of it is just the sheer pressure management teams are under from very upset shareholders who've seen hundreds of billions of value whiteout of European Bank stocks over the past few years and also it's an important signal. They think they're coming out of the air where they have to build capital. The thing that coming out. From time where they're having to pay billions in misconduct fines in the US and elsewhere each year. So it's a sign of the direction of intent from the management. You remember UBS Swiss rival of Credit Suisse unveiled their own back in October, which again was half the amount analysts had estimated they could afford to do an expected them to do. And the shares fell quite sharply on that new. So certainly will be on the lookout on Wednesday. Mr. Tian faces the same fate Credit Suisse. Absolutely. Thank you for that. Stephen. Let's move onto a second topic and a look at Amazon web services, which provides cloud services.
"credit suisse" Discussed on KDOW
"New office space factories computers. The truck software, research and development. Not at all. The tax cut plan was one point five trillion. That's the plan. That's the one that Kudlow Mnuchin came up with they said, it would do just that gives us these corporations that big tax cut, and you and I'd be making more wages. But here's the big fall with his plan. Dopey Kudlow this plan. These two dolts Carlo Mnuchin gave money to the very people who already had bundles of money so much money. They didn't know what to do with it. They're giving them money to the wrong people. There's two dopes. He has a P five-hundred coverage have blown so cash. They have so much cash. They don't know what to do with it. So they gave them even more money. I laugh at though. The other day. I heard color used the word remarkable use the word remarkable to describe the amount of cash that's going back to capital of that is just remarkable the amount of cash that they're from this tax cut. Now, they're putting back into company wages are going up. Unbelievable. Just remarkable. But in fact, the word that Credit Suisse use their study to describe the amount of capital investment that went back to compromise was unremarkable. Opposite remarkable. Unbelievable for the only six percent of the one hundred fifty billion dollar tax windfall. Ends up in the pockets of employees sixty percent ends up in shareholder dividends. Yeah. See ios. The average Geos picking up thirteen million dollars extra every year in bonuses. Every year. Now, get this. This is. Okay. They understand. This is investment is vital shields. No. Then nobody knows that business investment is vital to grow our economy. Especially want to go to four to five percent. You gotta have business investment. And remember when you have business investment that's vital right to get the GDP growth four or five percent to lift the standard of living in this country. So ten years after the financial collapse in two thousand eight business investment. By the S and P five hundred corporations is still weak, very weak. In fact, Credit Suisse and their study said there is little correlation between the companies that got the largest tax breaks. And the companies that are investing the Marsh. Here's a number of the shock. You. It used to be that the s&p five hundred company here any year out. Before all the stock by that crap. Investors about forty five percent of their cash flow from profits back into their companies. Through this capital investment? Today. It's less than half of the forty five percent less than half about thirty eight percent mean twenty eight percent. This is crazy. This is nuts. Unbelievable. So when Kudlow now the names of several companies, you remember that he came out and announced these companies including apple and Comcast and Exxon who are these these are the companies you're going to step up that a play and spend spend spend poor that prophet right back in the capital investment. But we were duped. We relied you when we get back out. Explain how eight seven seven six hundred gang. Join my gang on the thirty nine ninety five eight seven seven six hundred gay get my stocks. Want more information on.
"credit suisse" Discussed on FT Banking Weekly
"I mean, the whole messaging from David Solomon has been around conditioning the by giving going to be doing anything not. I mean, I think it makes sense for him to put more his own people around him. One of things will be closely watching the people. David has been promoting largely aside from the serious hire are people who have come up through the investment banking hikes, and then with Stephen sheriff on the consumer side, what we haven't seen a whole lot of him promoting people from the trading, and that's always being attention between Goldman Sachs. So in the run-up to venture crisis trading was very much the buying speak business. Now, you have very much investment banking lead leadership. I think they've nosy how the piece of work to convince the trading on this. He's off the bite that he's also on their side on the also values their countries into the by because I think what he does on that side of the house is going interesting if he tweets the their change of some of the strategies there. I think that's something that's going to be watched him and go. Not the moment as ready in strategic plan. And that plan is all of diversifying the revenue base. And that's part of what they're doing with the consumer buying. They have a toe in the water of off the online consumer banking market, which could be lucrative one for them, and they argue they're going to do well there because other bags have been trying to pare back the legacy call centers. We payback's Ron Goldman Sachs course that we are seeing from zero on just so they're lee-ing. They have the function of fintech. They are what they have. The big Bank knowedge then on the other hand will through with trying to do within the investment buying. It's changed the client base. Goldman traditionally relied on the very large client on the moves octave lines. They trying to get more of the corporate business because the very large knocked appliances come equipped to vote on revenue stream. They can be very active for a period of time. And then when the markets get difficult, they are active at all, nothing invested revenue being more volatile of its peers. So what they're trying to do is get more of the corporates, more of the client base of a city or Bank of America, or Jake. Morgan, even. That's something that I think David was very much aboard with the going CEO Lloyd blankfein strategy. We can expect to see him. I think exceleron us. Well, that's it for this week left for me to do is to think Multan and Stephen Hyun this Judah all guest from Credit Suisse lower born head of compliance and regulatory affairs, Laura Newnan and Rowbotham strong in New York, and also thank you for.
"credit suisse" Discussed on KYW Newsradio 1060
"Wake of the recent school shootings it's an acronym for situational awareness for emergency response it's been used by. The first go school district. North of Dallas For several years superintendent Mike Waldrip says. The program let's first responders, tap into, a school surveillance cameras remotely they. Don't have to wait until they get. To, the site, to see what's going on in the building they can call, it, the, cameras in. Their, cars they know before they get there have a pretty good idea before they get there. Of, what the situation is, the ideas that police having is, on a situation before they arrive will save valuable time and. Lives Clayton Neville Dallas NASCAR chairman Brian France has, been arrested in New York's Hamptons police say the fifty six year old was stopped after his twenty seventeen Lexus blew through a stop sign they say officers saw indicators the NASCAR chairman was intoxicated and found pills during, a subsequent search officers arrested France and charged him for driving. While intoxicated at criminal possession of oxycodone he was held overnight arraigned this morning and released NASCAR says. It takes Francis arrest as a serious matter and. That they will issue a statement after they have, all the facts I'm Alex. Hinton now it's time for, KYW business report with Jeff Bellinger Walt Disney headlines the. List of companies scheduled to post quarterly results today analysts say the entertainment company's film segment likely stole the. Show over the last three months even though solo. Underperformed at the box office Avis budget hostess brands Aramark Johnson outdoors and dean foods are also scheduled to open. Their books Patrick Pelfrey of Credit Suisse tells Bloomberg radio most American companies did very well last quarter. What we're seeing, from this, earning season is something that spectacular in the US. And it's primarily on the back of US economic strength the rest of the world is not participating to. The same, degree in the. US is seeing economic success in the trend more globally are slowing moderately, hell free, is still confident the US and China will find a way to. Defuse the current trade tensions the Labor Department's jolts. Report is, on the way this morning the so-called quick break the number of workers who voluntarily leave their positions is a prop For worker confidence I'm Jeff Bellinger Bloomberg business for KYW NewsRadio business. News at, twenty five and fifty five after every hour here on News Radio more than a, dozen football players at the university of North Carolina have, been suspended, for selling school, issued a quip thirteen UNC football players several of them. Starters including quarterback Chas Saran received suspensions of. Up to four games for NC double a.. Violations they sold a school issued athletic shoes UNC head football coach Larry fedora I'm extremely disappointed bar players actions and how those actions. Reflect on them and our program our department and the university the players sold the.
"credit suisse" Discussed on C-SPAN Radio
"Car the first time that's ever happened in see car. History the fed proposes to weaken the leverage constraint in car reportedly may drop the qualitative portion of the jazz wants to give bankers more leeway to influence the feds. Models In may soon adjusts dodd-frank stress test to make them less stressful, in less frequent hints periodic stress test test reducted in. Two thousand nine to provide confidence to the public that. The banks would weather could weather economic shocks how's the public supposed to trust the stress test when the fed proposes one an all of those ways to weaken them So we were strongly committed to using stress tests, we really developed the. Supervisory stress tests that the fed and as you know we we we think it's a very important. Tool it was one of. The main ways that we use to. Raise capital particularly among the largest firms and we're committed to continuing stress testing is one of. The three or four most important innovations along with higher capital higher liquidity and resolution it's one of the big four pillars for, us at that the program has to continue. To evolve we want to strengthen it. We want to make it more transparent we want to improve it over time and all of our actions are designed to do that and I think if you look at the state of the banking system in the fact that this test will require higher capital I. Think you'll see that's consistent with that our words? Are consistent with our actions, this is c. span radio programming from Tuesday Now. I think the message coming out emanating. From the business press in those are not Democratic liberal newspapers there the law Street Journal financial times the New. York Times business, section speaks, to the fact that these stress tests are getting weaker lemme ask another question vice chairman quarrels has. Given to speeches outlining how the fed wants. To recalibrate the rules for large foreign banks you gave an answer a carefully worded answer I thought to obscure, the fact, that large foreign banks may receive less oversight as a result of twenty one fifty five the public's. Getting mixed messages from the, fed for, the record, can foreign banks with more than fifty fifty billion in US assets Deutsche. Santander Credit Suisse the others can foreign banks with more? Than? Fifty billion in US assets can they expect to get regulatory relief. During your tenure I you know I think I can say that twenty one fifty five. It's not clear to me. How it, provides records regulatory relief to to those firms all of all, of the banks that, have fifty. Billion in US assets have more than two hundred and fifty billion in in in global assets so. I don't think, they're really, will be much effect I won't say that will never do anything to provide regulatory relief to a. Group during my tenure but so so your. Position seems to be that if they're between if they're over fifty in the US under two fifty as those, are but, much much much bigger with all the globally globally that you. Don't expect any regulatory relief for them. The main thing is the, fifty billion, dollar threshold, for internal holding companies will will remain the same we're not looking at. That so I I think they won't see much difference Physical commodities the fed proposed physical commodities rule from two thousand sixteen you. Are moving presumably to finalize it the fed responded to questions for the record saying that the board. Continues to consider this proposal. When can, we expect action on it Mr Chairman I don't have a date for you on that I know that we've received extensive. Comments on it and we're considering emergency? On it I'll have to go back and look and see where that is in Hewett please respond in writing to that in last questions germ the administration in some in congress. Pushed through tax cuts in Bank deregulation under. The guise that it would trickle down to American families in the form of more loans loan. Growth has slowed in, the last, quarter it was less than half the growth. Rate than during the last year of the Obama administration four largest banks. Is you know redirected record. Levels of profits in stock buybacks the four big banks CEO's got an average raise of twenty six percent my question is is simple when do you expect to be able to come before this committee and demonstrate to us in this committee as chair of the..
"credit suisse" Discussed on Bloomberg Radio New York
"The shape of barclays and curtis wason deutsche bank can often i ask you for not day on on who's winning out of the three because the three ceo's at the time had come into round similar times whether it was john chronic deutsche bank or credit suisse and mr staley i've barclays now crohn's out and we can sit here i would assume you would say must investment arche that torture banks bottom of those three we'll come back lease due to catch up with the progress that tich antiques seems to be making a credit suisse which seems to be pretty decent progress well i mean definitely see us as the head of the moment and barclays took off the full year when they started talking about increasing its dividend and share buybacks comfortable with taps are gonna go up what it needs to do is put in a good fake flats all higher and if you remember at fully they said we're well ahead installing dollar terms time hang on a second dole have windsor problem if they deliver on fake and it's actually a positive result and it does a decent job on costs and there are no surprises from ppi the stock continues to rise particularly if they can then start talking about chevrolet backs was still trading sub sub book valley we're going to do it can they compete in shanghai with the american banks i think so absolutely i mean they've they've balancesheet behind it we know that they've always been pretty aggressive so yes i mean within this john i mean i know you don't do buy hold sell but to john's question pharaohs question about the better results credit suisse juice from there ahead of the game which bank is the the people of europe that's a good question that would be hsbc which isn't a european bank i'd have to say that bmp tries to the big a discount but to be honest sort of banks that you would be comparing it to p morgan interesting liners there isn't one tom and so many of these banks have tried to compete in the past and cart anymore and if you look at the action of site cut suisse who just decided that they'll step away from the investment bank in a significant way following ready dugan accompanying and to.
"credit suisse" Discussed on Bloomberg Radio New York
"Again we're at the bottom of their earnings cycle so david we know you're unpaid swe's i adding more well we never talk about will work due in from current trading perspective but we still think credit suisse is significantly undervalued you'll seats one of our top five or six holdings and why is it still undervalued it's gone up a little bit last year it's done alright but now with the restructuring uh basically behind at credit suisse was restructuring story for the better part of the last tour three years as they were moving their managerial focus from the investment bank when all the capital intensity involved the round that so the private bank which delivers a good annuity like income stream they're not abandoning investment make be certainly they have very strong nishi said some very good a capabilities in their investment bank but they were just looking at capital allocation in a way which to me makes a lot of sense where are you going to get the highest through cycle returns this is where you deploy capital this restructuring took time and it's basically a gun so i think what we're going to see on a credit sweeps over the next two three four years is a much much more durable income stream and i don't think that's reflected in the market yet david is you look at credits we what kind of a mode is there around that private banking business because it's clear they really planning to fly in that they really going for they're not alone in that there are a lot of banks all around the world is when he was saying given all the regulatory structure given the risk involved we really want to go into that kind of business don't they have a lot more competition coming nearly do have some competition coming but oddly enough in areas where there the more strong as an example in asia they had a little bit less competition because there have been some that have retreated deutsche bahn for instance they've retreat because they needed to deploy capital elsewhere in their balance sheet well credit suisse meanwhile kinda goes from strength the.
"credit suisse" Discussed on FT Banking Weekly
"Welcome to banking weekly from the financial times with me patrick jenkins joining me in the studio today although renewed and our investment bank banking correspondent and caroline biniam of financial regulation correspondent we have a guest from credit suisse that's wilson enthused vicechairman in the group executive at credit suisse this week we'll be discussing the latest changes in the basel rules also a look at brexit an an update from the city of london and finally swiss private banking is gone forever io to the basel rules now these are the rules that govern the international rule book on banking the socalled basel fool rules have just been finalized and caroline you've been looking at exactly what they mean yep this is the number waited reforms to the existing basel three rules that came in in the wake of the financial crisis and i say longawaited they've been about four years in the making and for the last eighteen months two years of that process that have long been promises that we were about to come to a deal but that nothing was agreed until everything was agreed and whilst basel three in the wake of the crisis significantly pushed up the amounts of capital banks have to hold so that the numerator in the fraction that gets you to a bank's capital ratio this law set of measures have been looking at the denominated the riskweighted assets and the concern amongst regulators hasbeen that banks have been gaming how they calculate their riskweighted assets therefore giving themselves a more favorable capital ratio say what's the announcement on friday essentially unveils are stricter rules around how banks.
"credit suisse" Discussed on Le Show
"Credit suisse has taken a number of positive steps since our settlement with the department of justice so far according to the new york times gretchen mortgage stern and morgan's credit suisse's working diligently on the consumer relief aspect of the cell and according to the report it's meeting the deals requirements nevertheless close reading of the one hundred eighteen page analysis does raise questions about just how tough the settlement really was the report highlights the significant benefits crates weeks received under provisions in a deal that prosecutors said would hold back accountable for example the bank in and consumer relief credit for actions it would likely have taken any way the reports said more troubling most of the loans credit suisse will receive credit for modifying are owned by others then credits weeks specifically investors immortal more mogul mortgagebacked securities or rival financial institutions nearly all the loan modifications credit suisse's subsidiary will receive credit for we'll be performed on loans owned by third parties and to the extent these modifications result in any loss be borne by the owner of the loan and not credit suisse getting credit for costing together people money a little allowing the bank to forgive loans it does not own which the credits we settled and specifically does thanks obama puts the bank in a position to benefit from others losses that banks bad prosecutors a marriage made in the united states of america banks lays down it was bad banks copyright features broadcast and.