Talks of trouble brewing at Swiss investment bank Credit Suisse (NYSE: CS) gained ground over the weekend, with Twitterati beginning to raise the specter of a Lehman-like collapse.
What Ails Credit Suisse: Credit Suisse has seen its fundamentals deteriorate rapidly, thanks to a combination of macroeconomic factors and company-specific malaise. The bank has been rocked by a string of scandals and mishaps that impacted its financials, with the most notable being the situation that arose from the collapse of U.S. hedge fund Archegos Capital, founded by Bill Hwang, in early 2021.
The Swiss bank had then warned of a significant impact after it exited positions with the fund. Additionally, the bank was fined by a Swiss court in June for the lax controls it had, which allowed one of its employees to help a Bulgarian drug ring launder money, the New York Times reported.
In July, Credit Suisse said it reversed to a loss of 1.59 billion Swiss francs ($1.6 billion) in the second quarter from a profit of 253 million Swiss francs …