The CS in the middle of the struggle for survival

Ulrich Körner and Axel Lehmann swim. They roll over Excel plans instead of standing up straight away and stopping the exodus of staff, customers and business.

The blood loss of the number 2 in Switzerland takes on dramatic proportions. The bank is in a struggle for survival.

There are bombs slumbering in her books that no one is talking about yet. 2.44 billion in bonuses are open that have not yet flowed into the income statement.

Bomb – another (CS)

This alongside billions in software that needs to be written off, not to mention the explosive devices that lie in investment banking.

This should peddled in an emergency will.

CS needs money – urgently. Experts estimate the necessary capital increase at 10 billion or more.

As much as CS still has value on the stock exchange. (Currently 12 billion; UBS: 49, Julius Baer: 9.8)

Nobody is ready for cash infusion. Rather watch how the CS share price goes down daily.

Yesterday a 5.5 percent drop. In the evening, a share in the once proud Escher Bank was available for CHF 4.65 – a new “record”.

Time is running out. What are Körner and Lehmann doing? They hesitate, procrastinate, wait. Your consultants buzz through the house, filling tables.

A plan, a cut, a departure? Nothing, well.

8 billion software: programming code made of gold? (CS)

Meanwhile, the best have long since left the booth. And the media, above all the determining ones Reuters, Bloomberg and Financial Timesoverturn themselves with horror news.

Just like yesterday. First came the Financial Times with the tripartite division of the investment bank. The part that definitely stays with the group: the bath bench. Of all things.

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Reuters followed, claiming to have heard of Exit from America. CS management immediately denied this.

The bosses of the major Swiss bank, however, did not want to say anything about the other excitement Reuters-Storynamely that CS is urgently looking for fresh capital.

It is becoming clearer every day that the bank needs several billion for its restructuring, for its legacy issues, for its processes and for its ongoing business.

Lowest price ever: minus 49 percent since the beginning of the year (Swissquote)

That their major shareholders from the Arab region and from the USA that many money do not just want to shoot in, that is made clear by the rumors and stories that are spreading.

They have already lost so much with their CS shares that their desire for further investments in the big bank is limited. Let’s wait and see what their new top suggests.

That’s where the problem lies. Körner and Lehmann should launch their throw – now, immediately. With every day without a plan, the uncertainty increases, the price falls, and the mood deteriorates.

Secret weapon, ahoy (FT)

What on earth are the two CS cracks waiting for?

At the end of October.

“We have already said that we will communicate on the progress of our comprehensive strategy review along with the third quarter results.”

“It would be premature to comment on possible results before this point.”

Capt’n Zürisee (CS)

The crux is that neither Körner nor Lehmann have “skin in the game”. At the end of 2021, Körner held only 250,000 shares in CS, “his” President Lehmann even less, namely just over 100,000.

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This puts the CEO of CS at just 1,146,164.55 francs at risk, while the chairman at 503,223 francs is not even half as much.

Absolute peanuts compared to the bonuses and wages they collect risk-free. If all goes well, we’re the heroes – and collect a gun. If something goes wrong, no worry: Couldn’t care less.

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