Financial Reporting Flaws Are Disclosed By Credit Suisse

Credit Suisse’s stock has dropped by another 5% because the Swiss bank has found major problems with how it reports its finances.

In its late annual report, Credit Suisse says that the Group’s internal control over financial reporting for the years 2021 and 2022 was “not effective as it did not design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements in its financial statements.”

The bank says that fixing the problems is a “immediate priority” for which it is spending a lot of money.

Credit Suisse is in trouble right now because it has lost a lot of money in deposits since the fourth quarter.

In the fourth quarter, customers took out more than 110 billion Swiss francs from the bank. This was because of a string of scandals, legacy risk, and compliance failures.

After losing £3.5 billion in its third quarter, Credit Suisse’s management announced plans in October to cut 9000 jobs and split off its investment banking unit.

The bank says that outflows have leveled off but have “not yet reversed.”

Because there are still problems at the bank, the new chairman, Axel Lehman, has turned down a $1.6 million bonus and taken a pay cut.