Credit Suisse 1899

CREDIT SUISSE GROUP AG

Credit Suisse has a rich history dating back to 1856, when it was founded by Swiss businessman and politician Alfred Escher to fund the development of the Swiss rail system. From its early days, Credit Suisse was known for its innovative approach to banking, offering a range of services to support Europe's growing industrial sectors. In the 1900s, Credit Suisse began shifting towards retail banking in response to a growing middle class and increasing competition from fellow Swiss banks UBS and Julius Bär.

The bank quickly expanded beyond Switzerland, establishing a presence in major financial centers around the world, including New York City, where it opened an office in 1942. In the 1970s, Credit Suisse cemented its position in the US by acquiring First Boston Corporation, a prominent American investment bank. This move allowed Credit Suisse to expand its operations in the US and gain a foothold in the lucrative American investment banking industry. The acquisition of First Boston proved to be a successful move, with the two banks working together to provide a range of services to clients in the US and around the world.

Throughout the late 20th century, Credit Suisse continued to grow and diversify its operations, becoming a major player in the global financial landscape. The bank was at the forefront of technological innovation, introducing the first automated teller machines (ATMs) in the 1960s and pioneering the use of electronic trading systems in the 1980s. Credit Suisse also expanded into wealth management, establishing itself as one of the world's leading providers of private banking services.

In recent years, Credit Suisse has faced a number of challenges, including regulatory investigations and significant losses resulting from the collapse of Archegos Capital Management. When the US-based hedge fund collapsed in 2021, Credit Suisse took a $5 billion bath - equivalent to more than a year’s worth of profit. More recently, investors have been on high alert for signs of contagion following the rapid collapse of California-based Silicon Valley Bank on March 10, 2023. The crash of the major technology lender led to bank runs and major selloff in shares of banks around the world, including Credit Suisse’s.

Things turned particularly acute on March 15, when the Swiss bank’s largest shareholder, Saudi National Bank, told Bloomberg that it was “absolute not” considering adding to its investment due to regulatory rules. The timing couldn’t have been worse. The comments amplified investor’s concerns and triggered a bank run that saw the Swiss government intervene. On 19 March, long-time rival UBS agreed to buy Credit Suisse in a $3.2 billion government brokered deal set to cost the Saudi National Bank more than $1 billion in losses – and ending the bank’s 167 year-long history.